If you file for Chapter 13 bankruptcy, you will be making a monthly payment to the trustee of your case. He will pay your creditors in the bankruptcy from that payment.
The easiest way to take care of this payment is to have it automatically come out of your paycheck and be sent to the trustee. An Employer Deduction Order does this. Your attorney will file it with the court, who then notifies your employer of the amount of the payment and how often it is to be sent to the trustee. It’s automatic and you don’t have to think about it.
When your bankruptcy is complete (usually three to five years later), the trustee notifies your employer to stop deducting the funds.
I always recommend this to my clients. Some clients don’t want their employer to know they’ve filed, so they choose to pay their payment each month themselves.
If you have any questions, please call me at 770-631-2334.
