Is a person’s employer notified when he or she files under chapter 13?

In most cases, yes. Many courts require a debtor’s employer to make payments to the chapter 13 trustee on the debtor’s behalf. When the Trustee contacts the employer regarding the deduction of plan payments, he also sends an explanatory letter to show that the chapter 13 debtor is trying to pay all of his or her debts. Also, the chapter 13 trustee may contact an employer to verify the debtor’s income. However, if there are compelling reasons for not informing an employer in a particular case, it may be possible to make other arrangements for the required information and payments. The bankruptcy code prohibits discrimination against chapter 13 debtors.