Payroll Deduction for 13?

[Walnut]

Are payroll deductions mandatory for Ch 13 payments?

[GoingUnderInNV]

In my district (NV) nobody has said anything to me about it, so I plan to just keep paying myself. I'm CONSIDERABLY more comfortable handling this myself, rather than introducing TWO wildcards into the equation (employer, Trustee system). I just set aside half of my payment from each pay period in cash, get a money order every other week, copy it, and send it off. I don't know about anybody else, but the last thing I need is to introduce two unknowns into a plan that MUST be paid.

Check with your attorney or Trustee in your District to see if it's a requirement.

[lrprn]

Are payroll deductions mandatory for Ch 13 payments?

Depends completely on your trustee. Some do require payroll deductions, some allow payment with a personal check or money order, and a few permit automatic payment from your bank account to theirs. Whatever method(s) your trustee will accept for payment, you are limited to that.

[helpless]

We had our lawyer petitioned the judge to let us pay by check because of DH company being small and for fear of it jeopardizing his job. Was no problem at all.

[IN-DEBT]

payroll deduction.

This is the one area that the trustee would not budge on. Unless self employed he would not make an exception. They take it out of my bi-weekly pay. I work for a very large company and felt this was unfair, but oh well, they own me for 55 more months. Other than this, our trustee seem rather fair.

[bpg10591]

Same happened to us in 01, IN-DEBT. But after a while, we learned to live off of what we had left over and it positioned for better budgeting when we got our whole paychecks back some 5 years later. Hang tight.

[$$only4ever]

We did't have a choice with our trustee. Our payment to the trustee is taken out automatically from DH's check. At first, I was really bummed about it, but actually I am okay with it now. I always have proof that the payment was deducted and if the money doesn't get to the trustee, it becomes the employer's problem more than mine.

[fslady]

When I asked if payment by payroll deduction was optional, my lawyer said that the alternative (in our area) is to write out a $500 - $700 check to the trustee. I guess it's like a bond. I'd rather have that much money going toward the BK payment. Since I'm one of 2,000+ employees I'll go with deduction and let the payroll office be responsible.

[treehugger1]

Payroll deduction is a requirement in my BK district. And, why not. Think of it as "non-income," where the only debt you have is for mortgage, autos, and perhaps a monthly payback on money borrowed from a retirement plan. Although I've not filed yet, I am certainly ready to give up "control" of paying a percentage of my unsecured debt to someone else.

[quietsound]

Our trustee only accepts payroll deductions! My husband is retired on pension and it would have to come out of that, however I'M self employed and sent a request to see if I could make the payment myself since technically I AM my own employer..........the reason being is because his pension is the 1st of the month and that is when two mortgage payments are due and for fear of having to pay a late fee of up to $800 (which is what the lawyer told me it can be if late) I asked for permission to pay it myself the middle of the month when it's more feasable....I have heard nothing yet. however i'm still mailing in the payments cause our 341 was just last month.

[tay666]

Payroll deduction is a requirement in my BK district. And, why not.

Well, if we end up going 13, I hope that isn't the case here.
My employer won't do payroll deductions for anything.
Well, not quite anything but it is a major hastle and not reliable.
I hear horror stories all the time from people trying to get the company to do court ordered child support deductions. Which has taken some people several months to get set up. Then it is frequently sent late or they forget to deduct it at all

[quietsound]

to be honest i feel it's an invasion of privacy and goes against the privacy act. it's no one's business if you have declared bankruptcy, i don't feel it's right that your employer KNOW this information, it's none of their business!

[DOA]

to be honest i feel it's an invasion of privacy and goes against the privacy act. it's no one's business if you have declared bankruptcy, i don't feel it's right that your employer KNOW this information, it's none of their business!

Did you know that potential employers are able to review your credit record as part of their consideration for employment now? And insurance companies are also doing this. Not all employers do this, but some require it.

[quietsound]

yes, i'm aware of that but to go to your employer and have this request sent from the trustee/court asking you to take this money out of our checks because of chapter 13 bankruptcy is embarrassing and it's none of their business. suppose i don't WANT my employer to know this? I mean don't I have rights?

[bige1030]

Did you know that potential employers are able to review your credit record as part of their consideration for employment now? And insurance companies are also doing this. Not all employers do this, but some require it.

They can only do so with your consent - be sure to read everything that you sign that goes to a new employer!