Frequently Asked Questions
- Do I have to honor a Payment Change Letter from the Trustee?
Yes. The payment change is based on an Order of the Court.
- How long do payments have to be sent to the Trustee?
Chapter 13 Bankruptcy cases can last up to five years. The Trustee will send a letter when payments can be stopped.
- The employee has asked that payments to the Trustee be stopped, what do we do?
The debtors payments are based on an Order of the Court. They must continue until a new order is entered. Direct the employee to their attorney to handle the matter.
- The employee did not make enough money to cover the payment, how much should be sent to the Trustee?
Send in the amount of the check and direct the employee to their attorney.
- The employee is receiving a bonus, profit sharing vacation or other non-regular paycheck. Should the payment to the Trustee be deducted from this check?
Interpret the Bankruptcy Court Order as you see fit and direct the employee to their attorney for clarification.
- Payroll is set up for a different frequency than what the Bankruptcy Court Order states. Can I send in payments based on our regular pay schedule?
Have the employee contact their attorney to correct the Bankruptcy Court Order.
