Cite as: Keith M. Lundin, Lundin On Chapter 13, § 36.30, at ¶ ____, LundinOnChapter13.com (last visited __________).
Though not required by the Code or Rules, in many jurisdictions it is debtor’s counsel’s responsibility to submit a proposed order directing the debtor’s employer (or other source of income) to commence payments to the trustee consistent with the proposed plan. This order may be required with the petition or at the time of filing the plan.
The debtor must commence making the payments proposed by a plan within 30 days after the plan is filed or the order for relief is submitted, whichever is earlier.1 The practice in many jurisdictions is that an income deduction order issues to the debtor’s employer before confirmation, notwithstanding that the authority to issue income deduction orders is tied to confirmation by 11 U.S.C. § 1325(c).2 Some commercial Chapter 13 forms and software vendors provide an “Order to Employer” requiring deductions from the debtor’s pay and remission to the Chapter 13 trustee. Typically, the order also instructs the employer to notify the trustee if the debtor’s employment is terminated. Often the order forbids the employer to deduct other amounts from the debtor’s wages on account of garnishments, credit unions, wage assignments and the like.
In some jurisdictions, the income deduction order is prepared by the Chapter 13 trustee or by the clerk of the court and need not be submitted by debtor’s counsel. In some jurisdictions the income deduction order is not submitted by counsel or issued by the court until confirmation.
1 11 U.S.C. § 1326(a). See §§ 43.1 [ First Test of Debtor’s Good Intentions ] § 44.1 First Test of Debtor’s Good Intentions–43.4 [ Consequences of Failure to Commence Payments ] § 44.4 Consequences of Failure to Commence Payments and 401.1 [ Preconfirmation Payments ] § 44.6 Preconfirmation Payments after BAPCPA.