Bankruptcy Chapter 13 Wage Orders and Prohibited Types of Debt Collection

July 21, 2010 - PRLog -- Under reform law, Chapter 13 cases filed must be placed under Wage Order after 1st payment has been made. There has been an increased of Trustee’s Notice of Intent to Dimiss being filed due to Chapter 13 debtors only making 1st plan payment and then waiting for Wage order to keep them current. When a Wage order is submitted to the Chapter 13 Trustee at §341 meeting of creditors then it may take 30-45 days for the wage order directive to begin payroll deductions. Chapter 13 debtors must be instructed to make any payment that come due before the wage order garnishment begins.

In all Chapter 13 cases, the debtor is responsible to making all payments to the Trustee before wage order begins and needs to monitor their Chapter 13 account with the Trustee to ensure the Wage Order payments being garnished from their payroll are being sent timely to Chapter 13 Trustee by employer. Many employers do not understand that a Chapter 13 wage order directive must be treated just as a Domestic Support obligation garnishment is treated. A garnishment check to the Chapter 13 Trustee must be processed with payroll, not placed in accounts payable to be paid at later date. It is ultimately the Chapter 13 debtors responsibility to periodically follow up the ensure the their employer is sending the plan payments timely.

Finally, this would reduce the amount of Trustee’s Noticie of Intent to Dismiss that have recently been filed.

There are two kinds of prohibited debt collections.

The first is harassment. Debt collectors may not harass, opress, or abuse you or any third parties. They may not threaten violence or harm, publish anything stating that you owe debt, use obscene or profans language, reapeatd use of telephone to annoy.

The second is false statments. Debt collectors may not use any false or misleading statments when collecting a debt. Such as imply that they are attorneys or government representatives, imply that you have committed a crime, misrepresent that they work or operate for a credit bureau, give an inncorrect amount of debt, indicate that forms being sent to you are legal forms when they are not, or indicating that papers being sent to you are not legal forms when they actually are.

For more information visit http://www.bankrupcy-alternative.com/and-wages.html or call us directly. Here is another bankruptcy article http://www.prlog.org/10806963-bankruptcy-credit-counselin... and here is another http://www.prlog.org/10806958-bankruptcy-adding-creditors... for your reading enjoyment.

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