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B-3070-1. WAGE ASSIGNMENT ORDERS IN CHAPTER 13 CASES

(a)   Trustee’s Authority to Require Wage Assignment Order

Under 11 USC §1325(c), the Chapter 13 Trustee may, in any case in which he or she has been appointed, at any time request an order directing the Debtor’s employer to remit funds needed to fund the plan.

(b)   Procedure

The trustee may:

(1)     submit an order (“the Wage Assignment Order” or “Order to Pay”) directing a Debtor’s employer to remit to the trustee the payment stated in Debtor’s plan (including amended plans and motions for post-confirmation modification) or in a confirmation order; or

(2)     notify the Debtor’s counsel or, if pro se, the Debtor, that he or she is to submit the Wage Assignment Order.  Such notice shall be provided in writing, or orally at the meeting of creditors.

(c)   Effect of Failure to Provide Order

If the Chapter 13 Trustee proceeds under subparagraph (b)(2), then the Debtor’s counsel or Debtor shall submit such an order to the Court within seven (7) days of the notice from the trustee.  Failure to do so is, in itself, grounds for the trustee to move to dismiss the case.

(d)   Service of Orders

The party who tendered the order shall serve a copy of the signed order on the entity to which the order is directed, the trustee, and the Debtor.

(e)   Amended Orders Required

Debtor or Debtor’s counsel must advise the Chapter 13 Trustee if the Debtor’s employer changes before plan payments have been completed. If the Chapter 13 Trustee has given notice that the Debtor’s counsel or pro se Debtor should submit a Wage Assignment Order, that obligation continues throughout the case, unless rescinded by the Chapter 13 Trustee.  Debtor or Debtor’s counsel must submit a new order whenever the Debtor’s employer or the plan payment changes.