Chapter 13 Trustee
Eastern District of Tennessee
Southern and Winchester Divisions


Automated payment by bank debit for debtors

The Trustee is offering debtors on steady fixed income (Social Security, disability, pension) the ability to have their plan payments deducted directly from their bank accounts with a single monthly bank debit.

The debtors have the option of choosing either the 5th of the month or the 2nd, 3rd, or 4th Friday of the month to have the funds transferred regardless of the regular monthly date due.

The entire plan payment will be deducted in a single transaction. This is designed to work for monthly payment debtors that have a regular fixed source of income (such as SSN recipients.) Semi-monthly, biweekly and weekly payers can participate, but all the funds will be taken in a single transaction. Cases eligible for employment wage order deduction must use a wage order for payment. Debtors who are paying direct but have irregular income should not enroll. If a payment is dishonored or charged back by the bank, the debtors’ participation will be terminated and the debtors will have to make the remaining payments with cashier’s checks or money orders.

The debtors can voluntarily terminate participation, but, once terminated, they cannot be reinstated to the program. Do NOT terminate the deduction if you want to change the deduction amount or change the bank account. If you need to temporarily suspend payments while you get a new bank account, your attorney can request a temporary suspension. You are required to continue to make your payments while the ACH is suspended.

Click here for a more detailed explanation of the rules. Debtor ACH debit available.

FORMS (New forms with effective date 8/30/2016) Fillable form PDFs

Original Debit Authorization Minimum 10 days to process. Must get original signed form.

Termination of Debit Authorization Minimum 3 days to process. Original or fax or email (do not use epayinfo email, it is no longer monitored).

Payment Change/Date Change Authorization Minimum 3 days to process. Original or fax or email (do not use epayinfo email, it is no longer monitored).

Bank Change Authorization Minimum 10 days to process. Must get original signed form.

Request for Suspension/Resumption of Automatic Debit Deduction Request 3 days to process. Attorney office must make request.

 

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