How do chapter 13 payments work?

[coopersmydog]

Does the trustee garnish my wages, or do I just pay them like any other bill?

[rrockinggramma]

It depends on your trustee. Because I am retired, the trustee allowed me to send them in each month. However many do require that they are payroll deducted. Usually those plans have a better chance of success. But it is possible to send them in on your own each month if allowed. However it will take a motion from your attorney to the court to have that happen.

[broncho14]

My payments are payroll deducted. I get paid twice a month and my payment is $450 per pay period ($900 a month). I was told that it would be my responsibility to make the payments and for the first two months I had to send a cahsiers check. After the first two months they changed to payroll deduction and they didn't even tell me. I noticed my check was $450 short!!! My attorney contacted the Trustee and the trustee told my attorney that they just made a decision to do it with mine to help ensure success. I was good with it because I don't see that money and I just have what I have. I have a gambling problem (I have not gambled since I started in my 13) and this way I know and the Trustee knows that the money will get to the Trustee. By the way, I used the term garnishment and my attorney corrected me. It is a deduction, not a garnishment since a Chapter 13 Bankruptcy is optional for the debtor.

[coopersmydog]

Thanks. It would be nice if I could just set up like a regular payroll deduction. There would be less chance that employer finds out that way. Not sure it matters, I just don't want my personal business spread all over the place. We have some chatty Kathy's in HR. The whole freakin place would know.

I know that shouldn't matter, but I still haven't accepted all of this.

[broncho14]

That was my concern. I work as an administrator in a school district and we have the same problem with some people who like to talk too much. I know I have made some mistakes and I am taking actions to correct those mistakes. BUT, I do not want my business all over the district. I spoke with our payroll person and she said she is the only one who will know and I do trust her. If others have found out they haven't said anything about it. If they do find out and ask me about it I will just tell them the truth. If they can't handle it then too bad for them.

[justbroke]

There are no garnishments in a Chapter 13. What the Trustee (or your lawyer) will do, is get a Wage Deduction Order. Even if your Trustee doesn't, I'd still get one as it takes the payments directly out of your paycheck.

Note, that it is not a garnishment!

[Flamingo]

Thanks. It would be nice if I could just set up like a regular payroll deduction. There would be less chance that employer finds out that way. Not sure it matters, I just don't want my personal business spread all over the place. We have some chatty Kathy's in HR. The whole freakin place would know.

I know that shouldn't matter, but I still haven't accepted all of this.

Anyone from payroll who discusses your situation with any other employee can be fired. If someone from payroll leaks your information to another employee, contact your HR person and advise them. All employees sign paperwork when hired as to confidentiality and privacy information as to anything work related as to the company and employees and any of your payroll information is included.

[fslady]

Mail Orders

At my 341, the Trustee's rep told me that the payment would be due the 25th of every month and would be deducted from my paycheck. Since I'm paid once a month, on the last working day of the month, I told her that would be a problem. Thankfully she understood and next month is my 24th mail order payment! 36 to go!!!!