Minding the Gap

Understanding the Wage Deduction Process

Welcome to your Chapter 13 bankruptcy process. As part of your case, the court has issued a wage deduction order to your employer. This order directs your employer to set aside a portion of your wages and send it directly to your Chapter 13 trustee. This ensures your bankruptcy plan payments are made consistently and on time.

Your Plan Payment Details:

  • Total Monthly Plan Payment:
  • Employer Deduction Per Pay Period: 

What is a "Gap" Payment: If your employer experiences delays in implementing the wage deduction order, you are responsible for "filling the gap." This means if you receive your full net paycheck without the Chapter 13 deduction, you must send the portion of your wages designated for the trustee directly. Staying vigilant ensures you remain compliant with your bankruptcy plan.


1. How to Read Your Pay Stub

Locate Your Chapter 13 Deduction:

  • Check your pay stub for a line item labeled "Chapter 13," "Bankruptcy Deduction," or something similar. This represents the amount deducted and sent to the trustee.

Below is a sample pay stub.

Action: If the deduction appears, no further action is needed for this pay period.

2. Check Your Bank Statement

Verify Your Net Pay:

  • If your bank statement shows you received your full gross pay (without deductions), it may indicate your employer has not started processing the wage deduction yet.

Below is a sample bank statement. Use it to identify if your net deposit matches your gross pay:

Action: If your net pay matches your gross pay, this means the trustee has not yet received your payment.

3. What to Do if No Deduction Occurs

If your employer has not yet deducted and sent your Chapter 13 payment, you must make a one-time payment to the trustee to stay current with your bankruptcy plan. Here’s how:

  1. Log in to Your Account: Visit www.tfsbillpay.com.
  2. Make a Payment: Follow the prompts to make a one-time payment for the amount due.
  3. Notify Your Trustee: Consider informing your trustee’s office to ensure they are aware of the payment.

Questions? If you have questions about your wage deductions or payment process, please contact your attorney or trustee’s office for assistance.

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