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socrateaser, Attorney
Category: Bankruptcy Law
Satisfied Customers: 39043
Experience:  Attorney and Real Estate Broker -- Retired (mostly)
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In regards to Bankruptcy Chapter 13, are there any laws or

Resolved Question:

In regards XXXXX XXXXX Chapter 13, are there any laws or regulations that govern employers on how they pay bonus, if one is paid out? In any State? Thanks
Submitted: 6 years ago.
Category: Bankruptcy Law
Expert:  socrateaser replied 6 years ago.
Are you the employer or debtor in this scenario. Give me an idea of what you are trying to accomplish, because it's not clear to me.

Thanks in advance.

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Customer: replied 6 years ago.

I am the debtor, and I told my Employer and they want to know if there are any laws or regulations stating how the Employer has to pay out bonus if there is any to be paid out.


Expert:  socrateaser replied 6 years ago.
The employer's obligation is unchanged from whatever it was prior to the bankruptcy filing -- unless the court orders your wages redirected to the trustee -- something that I would consider extraordinarily unlikely.

Hope this helps.
Customer: replied 6 years ago.
I don't understand your answer, in a Ch13 your payments in the State of TN are sent directly to the trustee from your paychecks, but are there any laws or regulations outside of the employer following the court order issued to pay an amount bi weekly to the trustee? Thanks
Expert:  socrateaser replied 6 years ago.
A payroll deduction order in Chapter 13 is not required by federal law. It is discretionary with the judge. Your court may have a standing order for payroll deduction. Regardless, as an employer, your obligation is to follow the court orders presented to you. Example: If the order states: "Pay $X," then that's what you pay. If the deduction order states: "Pay $X, plus any and all additional bonuses greater than $X, due and payable to debtor on any date when payment is made," then that's what you pay.

In short, the employer follows the payroll deduction order.

Hope this helps.

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