What is an income deduction order in Chapter 13 Bankruptcy?

In Chapter 13 Bankruptcy Law in California, an income deduction order is a document that is issued by the court to an employer of the debtor. The order requires the employer to pay a percentage of the debtor’s wages directly to the court. This money is then used to cover the debtor’s bankruptcy payments to their creditors. An income deduction order can be issued at any time during the bankruptcy process. Once the order has been issued, the employer must start deducting a percentage of the debtor’s wages and sending the money directly to the court. This percentage is usually determined by the court and based on the amount of the debtor’s monthly payment plan. The employer must continue to make these deductions until the debtor has successfully completed their payment plan and their bankruptcy is discharged. Income deduction orders are important in Chapter 13 Bankruptcy Law in California because they help the debtor to make their payments to their creditors on time. This helps to speed up the process of the debtor becoming debt free and enables them to move on with their life.

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What is an income deduction order in Chapter 13 Bankruptcy?

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