We have a number of clients who are employed by the Montgomery Public School system who will not be paid on time due to a ‘human error’ with the direct deposit pay system. A majority of our clients live pay check to pay check, so this error puts them in quite the bind. Some have payroll auto drafts that may incur additional fees due their wages not being paid as it should have been. In one news release, the MPS Superintendent Margaret Allen states that employees who are affected by additional charges can submit documentation to be reimbursed. Ms. Allen further states that the area banks are being notified and asked to waive any charges they may impose.
Many clients also have payroll deductions for their Chapter 13 payments. Once the funds have been issued, the Chapter 13 payment should be deducted. If the deduction is delayed by a few days, it should not affect your Chapter 13 case since the system is only required to remit the monies once a month to the Chapter 13 Trustee’s office anyway.
We have had several clients contact our office already questioning any steps they will need to take to make sure their Chapter 13 case is not in jeopardy of being dismissed but if you are unsure or have any questions, please let us know.
If you are facing any additional financial difficulties due to this error or a combination of many other factors, please call one of our Bond & Botes office to see if you can help you get through your financial crisis.
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Gail Hughes Donaldson is a Managing Partner of the Bond & Botes Law Offices in Montgomery and Opelika, Alabama. She holds a Bachelor of Science from Auburn University at Montgomery, and a Juris Doctorate from Thomas Goode Jones School of Law. She’s been helping families work through the bankruptcy process since she started with Bond & Botes back in 1993 as a paralegal. Read her full bio here.