How Do I Pay The Chapter 13 Trustee?

This video talks about the method of paying the Chapter 13 Trustee.  Payroll control is the best way to have success in your Chapter 13 case.

Jesse Barrientes: So how do I pay the trustee? Do I send them a check? A money order? How does that work?

David Siegel: Well, if you are gainfully employed and you are working for an employer, then I’m going to mandate payroll control and that’s where the money comes directly out of your payroll check to the trustee.

Jesse Barrientes: Does it have to come out?

David Siegel: It has to come out through my office. I’m not going to do a case if you’re not going to go on payroll control because that basically tells me you don’t have a desire to really make your case work. If the money comes out of your check, then you know your Chapter 13 plan payment is going to be secure and that’s going to work.

Jesse Barrientes: Because it’s going to come out automatically. But it’s not – that’s the way to make sure that someone is successful. However, that’s not a requirement. So there are other folks out there who don’t do that.

David Siegel: Right. If you are self-employed, if you are on Social Security, if you receive rental income or any other income unlike an employer, then there’s no way to have it come out of your check. So you will have to make voluntary payments to the trustee in the form of either a money order or a cashier’s check and it must be mailed every month on time for the next 3 to 5 years. Quite a task.

Jesse Barrientes: That’s quite a task.