What is an income deduction order in Chapter 13 Bankruptcy?

An income deduction order is a court-ordered deduction of money from your wages or other income when you file a Chapter 13 Bankruptcy in West Virginia. The deduction is typically taken directly from your paycheck, and it is used to partially pay your creditors. This order is issued by the court and enforced by your employer. Income deduction orders are usually calculated based on a percentage of your income. This percentage is called the "commitment rate," and it can range from five to fifty-five percent. The commitment rate is typically based on the amount of money that you need to repay creditors. The rate may change over time based on your financial situation. Once the court issues an income deduction order, it is typically sent directly to your employer. Your employer must deduct the amount from your paycheck and send it to the court. The court will then distribute the money to your creditors as required by the bankruptcy order. Income deduction orders are powerful tools to help you repay creditors in Chapter 13 bankruptcies. However, they may also make it difficult to make ends meet while you are in the repayment process. It is important to work with a knowledgeable bankruptcy lawyer to ensure that you do not fall behind on your payments or have your income deduction order become too burdensome.

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What is an income deduction order in Chapter 13 Bankruptcy?

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