Is trustee direct deposit from employer?

[BC7114]

Under Ch 13 does the trustee payment come in the form of direct deposit from employer? Reason I ask is that I obviously want to keep this as close to the vest as possible, as it could mean the lost of potential advancement within the company. I don't know if this depends on state or trustee, but if so I am in AL.

[detroit9]

I think this is trustee/state specific. Sorry, I don't know the rules near....

Mine is via certified or bank check, no direct deposit.

[MommyMc]

I live in Texas and ours is taken directly out of my husbands paycheck. I really like it, I don't have to worry about anything; no getting cashier's checks, no mailing it, of course in the beginning I mailed it certified, signiture required and insured. At the bank I would have to tell the teller who to make it out to.. "Chapter 13 Trustee" and the post office would see where/who it's going to.
My lawyer said the main reason 13's fail is because people are late with or don't make their payments at all. I no longer have to be stressed about whether the payment got there ontime or to make sure the money doesn't get spent before I can have the cashier's check made. A lot less worries now!

As far as affecting my husbands job....his company hasn't said boo about it. He still gets his bonus's and raises.

Good luck to you!

[aces67]

I'm also in TX and they take it directly out of dh's check. I don't really like it but the trustee forces us to do it this way.

[MommyMc]

I don't really like it ...

What isn't there to like? No extra work to get the cashier's check (my bank charges me $4 everytime, no mailing it yourself (the extra fees for priority mail, signature and insurance) and no worrying about saving the money from paycheck to paycheck to make sure you can "pay the bill". With it being taken out directly we know it's been paid and on time. We actually have no responsiblility what so ever when it comes to making the payment.
We have a very strict trustee, we can't run the risk of being even a day late.
JMO!
Have a beautiful day!

[aces67]

B/C when dh's employer messes it up and they often do then they take double payments out of his paycheck and we can't get that payment back. It puts a dent in my bill money.

[MommyMc]

That stinks! We've never had a problem with it... knock on wood!!!
I can understand your frustration.

[bam531]

B/C when dh's employer messes it up and they often do then they take double payments out of his paycheck and we can't get that payment back. It puts a dent in my bill money.

Why can't you get the extra payment back? Our payment also comes out of hubby's paycheck and when they do make a mistake all I have to do is contact our attorney and he gets in touch with trustee. This has happened twice, but trustee has always sent us a refund within 2 weeks.

[getmeouttahere]

We actually proposed to have an ACH payment (automatic withdrawal from our checking acct.) Our attorney wasn't too confident it would fly, but tried anyway, and it was approved by the Trustee. Even the attorney was surprised. In our district (SE Michigan) I guess if you're proposing a once a month payment, opposed to bi-weekly, etc., your chances of getting an ACH payment is a little better. It definately won't hurt to ask.

I really like having our payment automatically withdrawn - no worries. My hubby gets paid on the 15th and last day of the month and the payment gets taken out on the 5th. No worries, I know the money will be there and it's easier for us to budget.

[BC7114]

Yeah, it would be awesome if the trustee would allow the payment to be automatically pull out of checking weekly, bi-weekly, monthly. Doesn't really matter to me considering my check is direct deposited anyway. Just would like to go through this process without my boss knowing. He probably would be understanding considering the 10% pay cut he just gave me!

[Flamingo]

Yeah, it would be awesome if the trustee would allow the payment to be automatically pull out of checking weekly, bi-weekly, monthly. Doesn't really matter to me considering my check is direct deposited anyway. Just would like to go through this process without my boss knowing. He probably would be understanding considering the 10% pay cut he just gave me!

A wage order for Chapter 13 payments may be required by your state. Your attorney would know. If so, there is not too much you can do about it but if you feel it could be detrimental to your job, mention that to your attorney who could check with the trustee to see if you can send in the payment via another way (Cashier's check, money order, etc.). The only people involved with a Wage Order are the folks in HR/Payroll who would handle that. Due to privacy laws, they cannot divulge your private information to any other employee. They probably have other wage orders in place for where you work for other employees as to BK, child support, judgments, etc. so it's nothing new to them. Your boss probably would not even be aware of the situation unless he has the need to review your personnel file which could hold information as to that specific payroll deduction after entered.