Payroll Deduction Guidelines in Bankruptcy

If you file Chapter 13 bankruptcy and are funding your bankruptcy repayment plan through payroll deduction, it is still your responsibility to make sure that payments sent, are accurate and on time. If your employer fails to withhold the payments, does not withhold enough money or sends in the payment late, you are responsible for fixing the problem. The employer will not under any circumstances be held responsible by the bankruptcy trustee for missed, late or inaccurate payments. That is solely the responsibility of the debtor.

Chapter 13 Bankruptcy Payroll Deductions

Many debtors go through the process of Chapter 13 bankruptcy and suffer dismissal because they left the responsibility up to employers to pay the plan properly and in a timely fashion without overseeing their own plan. While paying through payroll deduction is convenient it does not absolve the debtor from actively overseeing their Chapter 13 bankruptcy repayment plan.

Debtors can eliminate repayment problems with payroll deduction by realizing that their first payroll deduction will most likely not occur immediately. That means that the debtor should go ahead and send the bankruptcy trustee the first and second payment. When mailing a payment to the bankruptcy trustee, make sure to include your name and case number on the check or money order.

Have Any Questions About Chapter 13 Bankruptcy Payroll Deductions? Let us Know

If you have any questions dont hesitate to ask us. Submit your questions here or simply set up a free consultation.