anyone getting payment taken out of paycheck?

[DUMBAGAIN]

Our trustee requires payroll deductions, just curious if anyone else has that and how long after you filed they started deducting. We only filed 2 weeks ago, but I'm hoping to see it taken out of tomorrow check. So I don't have to worry about mailing it.

[zeezee]

I filed on Jul 30th and made my 1st pmt on the 27th of Aug. I just today went to sign the paper for the withholding order required by my trustee. I will probably have to make my Sep 27th payment then the payments should start coming out on the 1st of Oct.

[DUMBAGAIN]

OH really, yuck

[justbroke]

It depends on how good your company's payroll department is. My first wage order was ignored. The second one was having my payments deducted in less than 2 weeks from receipt of the order.

[zeezee]

It depends on how good your companies payroll department is. My first wage order was ignored. The second one was having my payments deducted in less than 2 weeks from receipt of the order.

Ha! Well my payments will be going out by DFAS (Defense Finance and Accounting Service) and trust me they work pretty quick to take your dough! lol I'm sure they are standing by at the ready once they get that order...

[Nicollette]

My payments didn't start coming out until the second month after filing.

[MSbklawyer]

Our trustee requires payroll deductions, just curious if anyone else has that and how long after you filed they started deducting. We only filed 2 weeks ago, but I'm hoping to see it taken out of tomorrow check. So I don't have to worry about mailing it.

The trustee can't require payroll deductions. The code provides that the "debtor shall commence making payments . . .". A lot of trustees say that they require it, and lawyers go along with it because a plan has a MUCH MUCH better chance of completion if wages are withheld.

Now, if you miss payments, the judge can order wage withholding or else dismiss you case if you don't agree. But you are entitled to self pay.

But trustees have very little authority to require or order anything. They are just another litigant in a bankruptcy case.

[justbroke]

The trustee can't require payroll deductions.

My District has determined, and it has been litigated, that the Bankruptcy Code instructs the Trustee to do everything to help the debtor complete their plan. (11 USC 1302(b)(5)) They have taken that to mean... wage deductions.

After confirmation of a plan, the court may order any entity from whom the debtor receives income to pay all or any part of such income to the trustee.

11 USC 1325(c)

ensure that the debtor commences making timely payments under section 1326 of this title

11 USC 1302(b)(5)

[TooMuchCredit]

From the debtor handbook, they are pretty much required in my district except in certain circumstances that you have to prove. But somehow I never had to sign a wage deduction order and have made payments via my bank's Bill Pay service. I got confirmed today so it looks like I don't have to go the wage deduction route. Yay!

[MSbklawyer]

My District has determined, and it has been litigated, that the Bankruptcy Code instructs the Trustee to do everything to help the debtor complete their plan. They have taken that to mean... wage deductions.

Srsly? I stand corrected then.

[justbroke]

Srsly? I stand corrected then.

Yes, and see the updated Code referenced I included. It's scary!

[zeezee]

"The trustee can't require payroll deductions."

I was about to say, no one told my trustee! They are REQUIRED in my district.

[Billssuck]

I had to make two payments on my plan before the wage order at my husband's work took effect. Also, he is paid bi-weekly and that kinda screwed things up for awhile. 26 pay periods/yr so not quite half of a monthly payment is taken out each pay day. Very screwy but now we're ahead payments wise and are doing fine. I'd rather mail the payment in myself if I had a choice....

[Flamingo]

The trustee can't require payroll deductions. The code provides that the "debtor shall commence making payments . . .". A lot of trustees say that they require it, and lawyers go along with it because a plan has a MUCH MUCH better chance of completion if wages are withheld.

Now, if you miss payments, the judge can order wage withholding or else dismiss you case if you don't agree. But you are entitled to self pay.

But trustees have very little authority to require or order anything. They are just another litigant in a bankruptcy case.

Pardon my being direct, but are you sure you are a BK attorney? What you state is incorrect. There are many districts that require wage orders as ours when we filed. However, with a good reason and a good attorney, one can get out of it as we did.

[MSbklawyer]

Pardon my being direct, but are you sure you are a BK attorney? What you state is incorrect. There are many districts that require wage orders as ours when we filed. However, with a good reason and a good attorney, one can get out of it as we did.

Some might call it "directness" but I think "rudeness" or "abrasiveness" would be more apt terms. It first appeared when you accused me of being here to troll for business.

But yes, I'm quite sure. Other than having filed for bk yourself, and having worked next door to a firm that practiced bankruptcy law, what are your qualifications or sources of expertise?

If a wage order is required in a district, it's because the JUDGE requires it, or the JUDGE has interpreted the code as requiring it and has a standing order. The trustee doesn't require it. The trustee doesn't have that authority. Many people attribute powers to the trustee that he does not have. The trustee, for the most part, is merely a litigant ex rel for the unsecured creditors. Maybe that's too fine of a point for you, but I think everyone else gets it.