Paycheck Payments - How Do You Stop Them?

[Jman30]

Hoping someone has experience with this. My Chapter 13 payments come right out of my paycheck via a wage garnishment.

I am closing a refinance Chapter 13 buyout next Wednesday, August 23rd. I am getting a little back at closing, but not a HUGE amount. (Of course, after 20 months in a 13, any amount seems huge!). My first payment on my new loan won't be until October 1st.

I would REALLY like to get the wage garnishment stopped as quickly as possible. I will get enough back at closing to put aside a month or two, but does anyone know how you stop this? Do you go through your attorney? Do you call the Trustee directly? Does it happen automatically when the Trustee receives the payoff funds??

[M900]

I closed two weeks ago and was told by payroll they had to have a stop order from the trustee, even though I voluntarily signed up for payroll deduction...I think you just have to wait or I suppose you could call your trustee and ask the question they've always been pretty helpful when I called my trustee. Good luck and congrats!!

[Jman30]

Yeah, I know my employer needs a STOP ORDER from the Trustee. When the order to put the wage garnishment on was given, it stated that it could not be stopped without authorization from the Trustee.

I just didn't know who did that...my attorney, me, or if iy happened automatically?

[13inOR]

Jman, been there done that. The judge has to stop it, no one else can. Have your attorney submit the paperwork asap. Mine took about 2 weeks to get stopped. If you have overpaid any to the trustee, he will send it back to you after your case is closed and audited.

[Jman30]

Jman, been there done that. The judge has to stop it, no one else can. Have your attorney submit the paperwork asap. Mine took about 2 weeks to get stopped. If you have overpaid any to the trustee, he will send it back to you after your case is closed and audited.

Thanks 13inOR, I knew if you got online you could help with this question. I'll give my attorney a call.....after all the questions I have had for him in the last two years, I am sure he will be MORE than happy to expedite my request to get me closed out.

How long did it take in your case for you to get the money back from the Trustee? I will be owed roughly $4,600 that the Trustee has and will be distributed since I am closing next week. Do you get the check via or do you pick it up at your attorney's office?

[13inOR]

It was mailed to me. Heres how mine went: Funds from title company wired to trustee on 2/28/06. Since it was last day of the month, no disbursement made for about 30 days, on 3/30/06. Then they had to audit, which took about 6 weeks. I got my refund from trustee about mid May 2006. About 4 weeks would have been shaved off of that if the trustee had gotten my funds even one day early, and the disbursement wouldnt have had to wait 30 days. My trustee only disburses once a month on the last day. I think this is fairly common.

Hope this helps! I could write a book on this subject!!

[Jman30]

It was mailed to me. Heres how mine went: Funds from title company wired to trustee on 2/28/06. Since it was last day of the month, no disbursement made for about 30 days, on 3/30/06. Then they had to audit, which took about 6 weeks. I got my refund from trustee about mid May 2006. About 4 weeks would have been shaved off of that if the trustee had gotten my funds even one day early, and the disbursement wouldnt have had to wait 30 days. My trustee only disburses once a month on the last day. I think this is fairly common.

Hope this helps! I could write a book on this subject!!

13inOR, this helps HUGE!

Here is how mine is supposed to go: Close on the 23rd, loan is funded on the 29th. Looking at my payments on NDC, my Trustee seems to send payments out on the 28th or the 29th. Sooooo....either I will be in the same boat as you, or they can pay it all out at once on the 29th and close me out sooner.