Automatic Plan Payment Option

1Debtors with Chapter 13 bankruptcy cases in Cleveland who are not required to make plan payments through a wage order will now have the ability to make their monthly plan payment through an automatic deduction from their checking or savings account. A wage order is required if the debtor is employed, per Administrative Order 05-4. Automatic plan payments via a checking or savings account apply to debtors on fixed incomes such as social security or a pension. The automatic plan payment may also be appropriate for debtors whose regular income is derived from a non-filing spouse or a sole proprietorship.

To enroll for automatic plan payment deductions, the debtor(s) must complete the Automatic Payment Enrollment Form. Once the completed and signed form is received by the Trustee's office, an automatic monthly transfer from the debtor's bank account will begin the following month. Transfers will occur once per month on or about the 16th. If the debtor's account has insufficient funds to cover the monthly transfer, the payment will be returned due to insufficient funds, and the debtor will be removed from the automatic plan payment program.

If you have any questions regarding the automatic plan payment program, please contact the Trustee's office.