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Payments:
Whenever possible Chapter 13 payments are made through a payroll deduction
at your place of employment. It will be easier to remain current on
your payments to the Trustee if the payment is automatically made on a
regular basis by your employer. Only in unusual circumstances does
the Court allow plan payments to be made by you directly to the
Trustee. MONEY ORDERS, CASHIER'S CHECKS AND PAYMENTS MADE BY
PERSONAL CHECK MUST INCLUDE: (1) your NAME, (2) your ADDRESS, and (3) your
CHAPTER 13 CASE NUMBER. DO NOT MAIL CASH OR BRING PAYMENTS DIRECTLY
TO THE TRUSTEE'S OFFICE. If your personal check is ever returned
to us for insufficient funds, or "bounces," we will require that
all future payments into your plan be made in the form of a cashier's
check or money order. Please make all checks payable to Mark T.
McCarty, Trustee, and forward all payments to:
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Mark T. McCarty, Trustee
P.O. Box 190120
Little Rock, AR 72219-0120
DON'T FORGET YOUR CASE NUMBER!!! |
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Payroll
Deduction Orders:
At the time you
filed your Chapter 13 petition, the Judge may have issued an order to your
employer to deduct your plan payment from your paycheck and send it to the
Chapter 13 Trustee. While you are under the protection of Chapter
13, this order PROHIBITS
your employer from honoring any garnishments, including back taxes, except
on-going child support, or as otherwise provided in the order. It is
important that both you and your employer understand that such an order is
NOT A GARNISHMENT.
A garnishment or attachment can come only from someone to whom you owe
money, and you do not owe the Court or the Trustee any money. The
Court is just carrying out its duty to administer the plan you voluntarily
filed and in which you gave the Court exclusive jurisdiction over your
future pay as long as you are in a Chapter 13 plan. Most employers
understand that you are making a serious effort to repay your debts rather
than avoid them. If your employer does not honor a wage deduction
order, let your attorney and the Trustee's office know immediately so that
the appropriate action may be taken. If your employer has any
questions, he or she may call our office for an explanation.
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Obligation
to Pay:
Even though the Court will usually order your employer to deduct plan
payments and send them to the Trustee, you must remember that you have the
obligation to make sure payments are made. You will receive a copy
of the order requiring payments soon after the plan has been filed.
Regardless of when it is received, the law requires that payments be
commenced within 30 days after the plan is filed.
Note: It may take several weeks for your payroll deduction to become
effective. In the meantime, be sure to make your regular payments
directly to the Trustee. The Judge's willingness to approve your
plan will depend on the good faith effort you demonstrate by your payment
record prior to the confirmation hearing. If your employer ever
fails to make a payroll deduction, you must tell your attorney that the
deduction was not made and you must send the needed plan payment to the
Trustee by personal check, money order, postal order or cashier's
check.
It is a good idea to keep your pay stubs to demonstrate that the
deductions are taking place. If there is ever any discrepancy in
your payment history, you will have the complete records demonstrating all
the deductions that were made. PLEASE REMEMBER:
If you ever receive a regular paycheck in which the Trustee payment
was not withheld, you should immediately mail the payment yourself.
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Failure
to Pay:
If the Trustee's office fails to receive payments on your Chapter 13 plan,
the Trustee or a creditor will seek to have your case dismissed. If
something happens to your job, you become disabled, get laid off or get a
better job, consult with your attorney at once. Your attorney may be
able to counsel you on the best way to protect yourself during such
time. The Trustee will send you notices or letters and you will be
advised, in writing, when the Trustee seeks to have your case
dismissed. In the role of administrator of Chapter 13 cases, the
Trustee bears the dual responsibility of looking out for the interests of
both debtors and creditors alike. Thus, whenever a debtor is
substantially delinquent in payments under the plan, the Trustee will
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of Payments:
It is extremely important
for you to let us know if something interrupts your pay and makes it
impossible for you to make payments to the Trustee. In some cases,
depending on how long your plan has been going and the kinds of creditors
you have, adjustments may be made on payments to prevent undue
hardship. Do not confuse this type of adjustment with an
emergency. If the payment adjustment required is more than just a
temporary adjustment, please contact your attorney to review and revise
your plan.
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