My "private" bankruptcy was just made public to my employer

[kmccoleman]

So I recently got confirmed for my Chapter 13 plan (YAAAY). The Order took forever to be issued by the Court. I recently checked PACER and thankfully it's finally been issued. However another Order was issued I didn't know anything about and had no warning of. This was an order to my employer to pull my Trustee payment from my payroll. So my "private" bankruptcy becomes public in an instant. I'm more annoyed my attorney didn't warn me of this especially since I'd been paying the Trustee voluntarily every month via money order. Its not my fault the Trustee's office takes a week after the week I send it to process the payment and have it appear on the NDC site. So of course the cat is out of the bag and I'm more than embarrassed. I had to tell my employer that this impending nonsense was coming, therefore making my private business very public. I work for a small law firm where everyone knows everyone's business and I didn't want my personal financial business becoming public to anyone else, let alone the people that employ me.

I'm more pissed at my attorney for not forewarning me this could happen. I'm honestly not surprised since she's a terrible attorney but I was stuck and now that I'm confirmed, I'm even more stuck. And because this wage order is now in place, I can't really shop around for a new job because no new employer is going to take an employee with a standing Chapter 13 Trustee order to pull from wages which is essentially a garnishment order. So between all the things going on with my house and now this, I'm about as low as you can get. Fairly certain the gum under my shoe is having a better year than me.

[BrokeinCA]

I'm so sorry this has happened. This has been a big concern of mine as well should I be forced into a Chapter 13. I don't have any words of wisdom, but I want to you to know someone out there is sending nothing but good energy your way in hopes that things begin to turn around for you.

[kmccoleman]

I'm so sorry this has happened. This has been a big concern of mine as well should I be forced into a Chapter 13. I don't have any words of wisdom, but I want to you to know someone out there is sending nothing but good energy your way in hopes that things begin to turn around for you.

BrokeinCA apparently this is the norm once a plan is confirmed in my State. At least according to my ass backwards attorney. I'm not a fan of being blindsided right and left and I definitely made a bad decision in picking her but the damage is done. You should definitely look at the rules in your state on this specific matter because at least I can be a cautionary tale to someone.

[flashoflight]

Not the same situation as a small employer, but my big employer gets all sorts of wage deduction orders like child support, alimony, taxes, and of course BK. There is an internal payroll webpage dedicated to process and procedures for the myriad of wage garnishments so it's quite common. Nobody really cares (at my work) because life happens to many. I know at a small employer it can be very different, but nobody cares here and it won't affect your career here one bit.

[kmccoleman]

Not the same situation as a small employer, but my big employer gets all sorts of wage deduction orders like child support, alimony, taxes, and of course BK. There is an internal payroll webpage dedicated to process and procedures for the myriad of wage garnishments so it's quite common. Nobody really cares (at my work) because life happens to many. I know at a small employer it can be very different, but nobody cares here and it won't affect your career here one bit.

flashoflight its just my comfort level and neuroses honestly. I'm not a big fan of where I'm working (underpaid) and now making a transition will next to impossible with this fresh order from the Court. No new employer would take this with a grain of salt. The firm is fine just not where I want to drop anchor.

[Carmella]

That stinks that your workplace can't keep it private. I knew it would be pulled from the workplace. However since I work for a bigger company it's not everyone's business as I only know HR as name at corporate. The people at our place do not process the payroll or even our punch in/out, etc.

[justbroke]

I'm sorry to read about your experience, but this is quite the norm in Chapter 13s. Most districts require a wage deduction order to "help the debtor" comply with the orders of the plan

So, yes, wage deduction orders are very normal in bankruptcy and they go to your employer. In some cases, you can petition the court to not use a wage deduction. In my second Chapter 13, I asked and was granted the ability to pay the Trustee directly without a wage deduction order.

I'm even more stuck. And because this wage order is now in place, I can't really shop around for a new job because no new employer is going to take an employee with a standing Chapter 13 Trustee order to pull from wages which is essentially a garnishment order.

First, a wage deduction order (WDO) is not a garnishment. It's a voluntary payment just as some people can do payroll deductions to pay for things that they buy (especially military, but some employers allow this as well).

As others have pointed out, employers deal with all sorts of garnishment and wage orders. Even the tiny employer (I'm such an employer) uses payroll services which "easily" allow the employer to input the information just once into their system and the payroll system handles the deduction. (I'm using Square Payroll and even that allows all sorts of wage orders... child support, alimony, court-ordered restitution, etc.)

Any employer that won't hire someone because of a wage deduction order. Your new employer won't even know about this WDO especially since it's not a garnishment. If you change employers you actually have to file a motion to "vacate" the existing WDO and file a new one. If, and when, you do change employers, you may be able to ask to just pay directly without the WDO. As I wrote, I never knew I could pay direct, but once I found out, I signed up for direct payment. My Trustee also used Sun Trust which not only had an online payment site (which used NCH-based payments direct from my account), but also allowed me to setup automatic payments.

If your employer has a cow about wage orders, then it is probably a place I would not want to work. They are a fact of life for employers. Now, excessive wage orders may make an employer upset.

[kmccoleman]

That stinks that your workplace can't keep it private. I knew it would be pulled from the workplace. However since I work for a bigger company it's not everyone's business as I only know HR as name at corporate. The people at our place do not process the payroll or even our punch in/out, etc.

Carmella yeah the firm I work for is small so although only the office manager and accountant are the only people who really know. People are nosy by nature and given the year I'm having, I wouldn't expect anything other than a mess. I'm trying to have faith and optimism that I'll come out on the other side of this stronger but it's difficult when all you have is crap to be optimistic about.

[NoMoney30]

Ugh...just saw this lady. I am certainly hoping the New Year Gods will take heart and cut you a break for 2020. You've been through enough. I wish you lived in VA. We have a service here that takes our payments. Its called TFS. You just sign up with them and they take your payment when you want. So sorry to hear.