When a debtor files for Chapter 13 bankruptcy , he/she can choose to have the repayment amount automatically deducted from their paycheck. The bankruptcy deduction can be has high as you prefer or as low as you prefer as long as it covers the amount you agreed to pay in the bankruptcy plan. There is no limit on how much you can choose to deduct from your paycheck to repay a bankruptcy plan. Federal limit on paycheck deductions does not apply to Chapter 13 bankruptcy payments.For example, if you have a $500 a month Chapter 13 bankruptcy payment, you might choose to have the bankruptcy court deduct $250 from each of your bi-weekly paychecks, even if you’re only earning $500 every two weeks. To set up a ongoing deduction plan from your paycheck for repayment of the bankruptcy plan you will need to submit a written plan to the bankruptcy court stating exactly how much money you want deduct from each paycheck.
The bankruptcy court will then give a wage deduction order to your employer who will deduct the ordered amount per your request. To find out more about your Chapter 13 bankruptcy repayment options speak with your Dallas-Fort Worth bankruptcy attorney.
