Everyone wonders how exactly they make payments to the Chapter 13 Bankruptcy Trustee once their Chapter 13 case gets filed. It is actually a very simple process. There are two options: payroll deductions or direct payments. Deciding which of those two you will do is even easier. If you are employed, it will be a payroll deduction. If you are not employed but have some other source of income (SSI, SSD, etc.) then you will make direct payments to the Trustee.

Payroll Deductions

If you are employed, and your employer has more than five employees, then you will need to have your payments made by payroll deduction. Sometimes I run across someone who is scared of this option because they fear that everyone they work with will find out. I can help with that concern. First, only the person or location that handles payroll will know because that’s where your payroll deduction order will go. We get that address straight from your paycheck. Second, it is highly likely that there are other people at your work who are also either currently in bankruptcy, have previously filed bankruptcy, or are considering filing bankruptcy. Trust me, you are not alone.

Additionally, most people really like the payroll deduction because then they don’t have to think about making that payment each month. And everyone likes one less thing to remember.

Direct Payments

For people who are not employed, or are self employed, or perhaps receive social security or something similar, you’ll need to send your payment in to the Trustee yourself. That’s because the Trustee isn’t set up right now to actually withdraw funds from your bank account.

If you are required to send your own payment in, here are a few reminders about that payment:

•If you need to mail your payment, send it to: Chapter 13 Trustee, PO Box 1313, Jackson, TN 38302.

•If you need to take your payment in person, the physical address is: 250 North Parkway, Suite 1, Jackson, TN. This is on North Parkway beside the Madison County Board of Education office, between the Hwy 45 Bypass and Hollywood Drive. They have a drop box so you can drop off your payment any time.

•Be sure to send only a money order or cashier’s check. A personal check or cash will likely get your case dismissed. Money orders are available at most post office locations, Wal-Mart, banks, and other locations.

•Be sure to put your case number on your money order or cashiers check. If you do not have your case number, put your social security number on your money order or cashiers check to make sure your case gets credit for your payment. You may not be the only person with your name, so the Trustee uses these numbers as identifiers.

•If you are sending your own payment in, your case may also be on “probation.” This means that if you don’t pay the full amount on time, your case can be dismissed with no notice. So, pay on time and pay in full.

Either way you make your payment, a Chapter 13 Bankruptcy really makes it so much easier to budget than what you are probably trying to do right now. Think about it: you know exactly how much money will be withheld from your paycheck or that you send in, and what exactly that covers, so then you know how much money you have left to spend out of that paycheck and where it needs to go. No more staying up all night deciding which bills get paid, or how much you can send to each person you owe. It’s all handled for you. However you think about it, it’s less stress on you and more time for you to spend with your family or doing things you like to do.

Want more information about filing a Chapter 13 or Chapter 7 Bankruptcy? Give us a call at 731-424-3315 or talk to us in the instant chat box on our website any time. We’d love to hear from you and see what we can do to help you reach your goals.


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