Wage Order Requirement
Chapter 13 debtors are required under the new law to go under a wage order for their Chapter 13 payments. The purpose of having the debtors under a wage directive is to reduce the amount of cases that are dismissed. The problem that you run into is just a few. Some Chapter 13 debtors don’t want their employer to know that they are filing bankruptcy, so they don’t want to go under the wage order. Unfortunately for them, the Chapter 13 trustee doesn’t care about that. As a debtor you have to choose between your property and your job. When you file for bankruptcy it is not suppose to effect your job and everyone will not know that you filed, only the person who handles the payroll. If you get terminated from your job and you’re in the state of Texas, you can get fired for any reason. The other problem you tend to see is that Debtors don’t make their first Chapter 13 plan payment. This will cause their case to get dismissed and then they will have to retile. If you have any problems, contact your bankruptcy attorney with any questions or concerns.
