Wage Deduction Order

WAGE DEDUCTION ORDER. This form issued by the United States Bankruptcy Court for the Western District of Virginia is used in Chapter 13 bankruptcy cases to direct an employer to deduct a specified amount from a debtor/employee’s wages and send those funds to the Chapter 13 Trustee. This order ensures that the debtor makes regular plan payments as required under their Chapter 13 repayment plan. The employer is instructed to withhold the designated amount from the employee’s net pay—after deductions for taxes, child support, retirement contributions, union dues, and insurance premiums—and remit the funds to the Trustee according to the designated payment schedule (monthly, semi-monthly, bi-weekly, or weekly). The employer must begin deductions within seven days after receiving the order and must send the funds to the Trustee at least once per month. Employers are not allowed to charge any fees for complying with this order. The order remains in effect until either the court issues a termination order or the debtor separates from employment, at which point the employer must notify the Trustee. If the employer fails to comply, the court may take enforcement actions, including contempt proceedings. The order may also be amended during the case to adjust the payment amount, and the employer must comply with any modifications. A copy of this order is sent to the employer, the Trustee, and other relevant parties. www.FormsWorkflow.com