payments for 13

[SCORPIO07]

Hello,

I am not sure if I am going to go chapter 7 or 13. But I have a question regarding chapter 13 payments. Do the Payments for a chapter 13 have to come out of your paycheck via payroll or can you mail the monthly payment in.


Thanks

[chpxiii]

I believe under the current law they need to be automatically withdrawn from your payroll check.

[SCORPIO07]

Thanks

[MajorMike]

No, it depends on your trustee. I can mail mine in. You have to check to see what form of payment your trustee takes.

[lrprn]

I believe under the current law they need to be automatically withdrawn from your payroll check.

Sorry, chpxiii - not true.

Each Ch 13 trustee decides how they want to be paid every month. Some only allow direct deposit from paychecks, some allow personal checks and money orders as well. For example, our trustee does allow personal checks and that's how we pay every month.

Given special extenuating circumstances, a trustee that allows only paycheck deduction can be asked by the debtor to make exceptions to his/her payment policy. It's been done successfully before.

[$$only4ever]

Our trustee wants it taken out of the paycheck and sent directly to them. Also, our trustee would never take a personal check, we had to use money orders until the wage order went into effect.

[chpxiii]

Interesting! I did not know this.

I am old law when I filed and I send in a cashier's check everymonth. I keep reading about people and having their trustee payment automatically deducted via payroll and even my trustee's site says payments must be deducted, so I assumed, erroneously, that under the new law this had changed.

Good to know.

$$only4ever, my trustee won't take a check either. Which is really the only annoying thing about this. I don't trust money orders (I don't know why, I just don't) so every month I go to my bank and get a bank/cashier's check. Which was also acceptable for my trustee.

[arlington]

Hello,

I am not sure if I am going to go chapter 7 or 13. But I have a question regarding chapter 13 payments. Do the Payments for a chapter 13 have to come out of your paycheck via payroll or can you mail the monthly payment in.


Thanks

I asked the paralegal and she stated that the trustee prefers for the amount to be automatically deducted from your paychek for the 1st year and then afterwards you have option to choose if you still want it deducted or if you want to mail it in.

[$$only4ever]

Actually Chpxiii, I am glad that the trustee takes it right out of the paycheck. I have a record of it being paid and if the payroll company that does the payroll don't send it, the trustee goes after them. I have done my part.

I agree with you about money orders though. If they get lost in the mail, it is a real hassle to get a stop payment on them.

[chpxiii]

$$only4ever, yes. The "paper" trail (albeit electronic) shows you've made your payment, so that is a good thing.

With my cashier's checks, I do have 4 years worth of casheir's checks receipt. I get an accounting of my payments every year and check to make sure that payments are applied. If not, my only "proof" are my paper receipts, which are carbon copies of the casheir's checks. So far so good! *crosses fingers*

[arkienurse]

Also, with payroll deduction there is zero temptation to spend the trustee's payment before they get it, because you never see the money. Kinda like taxes

[MajorMike]

we're just going to make them out of our checking account. ( bill pay ) they send bank checks and it's all traceable.

[dscurlock]

Hello,

I am not sure if I am going to go chapter 7 or 13. But I have a question regarding chapter 13 payments. Do the Payments for a chapter 13 have to come out of your paycheck via payroll or can you mail the monthly payment in.


Thanks

I do not care who knows of my BK, but my wife would be sensitive to a payroll deduction, she is a high ranking manager
and she would not want the company to know her business, and they would if they take it via payroll.

[Granny]

MajorMike,

Have you verified with the trustee that they will take the bank's check? I would love to be able to pay it with the online bill pay.

[MajorMike]

Yes, because it's not a personal check. the funds get taken from my account immediately and form into a bank check ( which is guarenteed funds ) and sent to him. It's like going to the bank and getting a bank check or money order.

MajorMike,

Have you verified with the trustee that they will take the bank's check? I would love to be able to pay it with the online bill pay.