If I lose my job and have to go on unemployment, will the Bankruptcy Court take my payments out of the unemployment checks?
If you lose your job after your Chapter 13 Plan has been confirmed and payments have started, it is still your responsibility to make sure the payments are sent in to the Trustee. If you are able to make the payment from your unemployment then you should do so but a wage order taking the payments directly from your unemployment check is not allowed.
Alternatively, on Motion to the Court, the Court will allow a brief period of "moratorium" or suspension of your payments while you look for new employment. The missing payments do have to be made up however by either adding on more time to the end of your Plan or, if you started out in a 60-month Plan, by increasing your monthly payment once you get back to work.
