Do Indianapolis Chapter 13 Require Wage Assignments?
In Indianapolis, the Chapter 13 trustee always recommends a wage assignment. The wage assignment automatically takes out your payment in your Chapter 13 case from your paycheck. It is very similar to a garnishment except for it pays all of your creditors through Chapter 13. Near Indianapolis, Chapter 13 wage assignments are not required. They are only recommended.
Chapter 13 Wage Assignments Not Required
In Indianapolis, the Chapter 13 system does not always require wage assignment to take money directly out of your paycheck. The two primary trustees in the Chapter 13 Indianapolis areas do not require this form of payment. They will not require a wage garnishment to take out your payments for the case.
However, at least one Chapter 13 Trustee in the greater central Indiana bankruptcy area still files a Chapter 13 wage assignment on most of the cases. This area covers parts that are still in the Southern District of Indiana but beyond the primary Indianapolis division. This area is in some counties south of Indianapolis. Chapter 13 trustees have noticed that cases with automatic payments are usually more successful. That is why this particular trustee requires the wage assignment for your paycheck.
Alternatives to Indianapolis Chapter 13 Wage Assignments
Chapter 13’s can also be paid directly by mailed-in payment in Indianapolis. Each Trustee has a Memphis Tennessee PO Box to send payments to a central bankruptcy payment center. This type of payment is more burdensome, however, because each payment must be mailed.
Another alternative is called “E-pay,” the ability to take the payment directly out of your bank account. These payments can be scheduled and automatic each month. They are much easier than sending the Chapter 13 payments in manually each month. If you are unable or unwilling to do a wage assignment, the “E-pay” online payments are an easy alternative.
Check out our Chapter 13 Client Tools Section for more information on Chapter 13 Bankruptcy.
