Chapter 13 Trustee
Eastern District of Tennessee
Southern and Winchester Divisions


Automated payment by bank debit for debtors

The Trustee is offering debtors 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.

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

FORMS

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.

Payment Change/Date Change Authorization Minimum 3 days to process. Original or fax.

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

 

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