What is an income deduction order in Chapter 13 Bankruptcy?

An income deduction order in Chapter 13 Bankruptcy is a court order that requires a debtor to have a portion of their wages or salary deducted from their paycheck each month and used to make their Chapter 13 bankruptcy plan payments. The deduction order is issued when the debtor has filed for Chapter 13 bankruptcy protection in the state of Virginia. The income deduction order is used to ensure that the debtor has the financial ability to make their bankruptcy-plan payments each month. It does this by taking the money out of the debtor’s paycheck before they ever have access to it. This ensures that the debtor will have the money to make their payment each month, and it ensures that they are in compliance with their bankruptcy plan. The income deduction order is important because it helps to make sure that the debtor is successful in paying off their debt through their bankruptcy plan. It also helps to guarantee that the debtor is meeting the terms of their repayment plan, so that creditors can be sure to receive the payment amount each month. In order to have an income deduction order put into place, the debtor must provide proof of income to the court when filing for Chapter 13 bankruptcy. This helps the court to determine the appropriate repayment plan amount that the debtor must make each month. Once this amount is established, the court will issue the income deduction order which will then be sent to the debtor’s employer.

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What is an income deduction order in Chapter 13 Bankruptcy?

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