11 Oct Can I Make My Trustee Payment by Bank Draft?
When you are in a Chapter 13 payment plan, if your payments aren’t made to the trustee, the trustee will ask the court to dismiss your case. In South Carolina the trustees will usually give you one chance to catch up once you get behind. After that, if you get behind again the trustee may ask the court to dismiss your case without any further notice. So, many of my clients want to know if the trustee can draft plan payments from their bank accounts. Unfortunately, the trustees in South Carolina are not able to do that. Practices may vary where you live; check with an experienced bankruptcy lawyer.
Trustees can, however, get an order from the bankruptcy court that allows them to set up a payroll deduction for payment. Payroll deduction for many people enhances the chances of successfully completing a Chapter 13 plan, but it may not be for everyone. It may not be available for those who are self-employed, work on a commission basis, or whose income is from something other than employment. Many of my clients choose not to make payments by payroll deduction, although I recommend it in many cases. Some Chapter 13 trustees will ask for a pay order in almost every case where the debtor’s employer is large enough to handle the request. Again, consult with your attorney about whether a pay order is available or mandatory in your district.
Bankruptcy Law Network (BLN)
Latest posts by Bankruptcy Law Network (BLN) (see all)
- Bankruptcy Rule 3002.1: An Unlikely New Weapon Against Debtors - January 9, 2017
- Court Says Chapter 7 Debtor May Not Have Two Cases Pending at Same Time - December 12, 2016
- What Happens to My Inheritance in Bankruptcy? - December 2, 2016
- Unsettled Question: Another Court Rules That Bankruptcy Client Worksheets Are Privileged - February 6, 2016
- Chapter 13 Debtor’s Lawsuit Tossed Out for Failure to List It in Bankruptcy Documents - January 31, 2016