The U.S. Bankruptcy Code also allows individual debtors who meet certain financial criteria to adopt extended time payment plans for the payment of debts. An individual debtor on a regular income may submit a plan for installment payment of outstanding debts. This is called a Chapter 13 Plan. This plan must be confirmed by the court. Once it is confirmed, debts are paid in the manner specified in the plan. After all payments called for by the plan are made, the debtor is given a discharge. The plan is, in effect, a budget of the debtor's future income with respect to outstanding debts. The plan must provide for the eventual payment in full of all claims entitled to priority under the Bankruptcy Code. The plan will be confirmed if it is submitted in good faith and is in the best interest of the creditors.
A Chapter 13 plan must provide for the submission of all or such portion of future earnings or other future income of the debtor to the supervision and control of the trustee as is necessary for the execution of the plan. After the confirmation of a Chapter 13 plan, the court may exercise its discretion and order any entity from whom the debtor receives income to pay all or part of such income to the trustee.
A California Order Requiring Debtor's Employer to Remit Deductions from a Debtor's Income to Trustee is a legal mechanism utilized by the bankruptcy court to ensure the orderly repayment of debts. This order specifically instructs the debtor's employer to withhold a portion of the debtor's income and remit it directly to the appointed trustee overseeing the bankruptcy case. This type of order is commonly issued in Chapter 13 bankruptcy cases, which involve a repayment plan where the debtor agrees to make regular payments to creditors over a specified period. By mandating the employer's involvement, it ensures that the debtor's income is properly channeled towards the repayment plan, leaving no room for individual discretion or non-compliance. Keywords: California Order, Requiring Debtor's Employer, Remit Deductions, Debtor's Income, Trustee, Bankruptcy Court, Order, Chapter 13, Repayment Plan, Creditor Payment, Employer's Involvement, Compliance. Different variations or subtypes of California Order Requiring Debtor's Employer to Remit Deductions could include: 1. Wage Garnishment Order in Chapter 13 Bankruptcy: — This order is specifically designed to deduct a percentage of the debtor's wages directly from their paycheck, usually on a monthly basis, and remit it to the trustee for distribution among creditors as outlined in the approved repayment plan. 2. Income Withholding Order for Child Support and Alimony in Bankruptcy: — In cases where the debtor owes child support or alimony payments, this order mandates the employer to deduct the required amount from the debtor's income and remit it to the trustee, who then disburses it to the appropriate recipients. 3. Automatic Stay and Pay Order in Chapter 7 Bankruptcy: — In a Chapter 7 bankruptcy case, an automatic stay is usually put in place to halt collection activities by creditors. However, in certain situations, the court may issue an order requiring the debtor's employer to continue making deductions from their income and remitting it to the trustee for the benefit of the estate, even during the bankruptcy proceedings. Keywords: Wage Garnishment Order, Chapter 13 Bankruptcy, Income Withholding Order, Child Support, Alimony, Automatic Stay, Pay Order, Chapter 7 Bankruptcy, Collection Activities, Creditor Payment, Debt Repayment, Deductions.A California Order Requiring Debtor's Employer to Remit Deductions from a Debtor's Income to Trustee is a legal mechanism utilized by the bankruptcy court to ensure the orderly repayment of debts. This order specifically instructs the debtor's employer to withhold a portion of the debtor's income and remit it directly to the appointed trustee overseeing the bankruptcy case. This type of order is commonly issued in Chapter 13 bankruptcy cases, which involve a repayment plan where the debtor agrees to make regular payments to creditors over a specified period. By mandating the employer's involvement, it ensures that the debtor's income is properly channeled towards the repayment plan, leaving no room for individual discretion or non-compliance. Keywords: California Order, Requiring Debtor's Employer, Remit Deductions, Debtor's Income, Trustee, Bankruptcy Court, Order, Chapter 13, Repayment Plan, Creditor Payment, Employer's Involvement, Compliance. Different variations or subtypes of California Order Requiring Debtor's Employer to Remit Deductions could include: 1. Wage Garnishment Order in Chapter 13 Bankruptcy: — This order is specifically designed to deduct a percentage of the debtor's wages directly from their paycheck, usually on a monthly basis, and remit it to the trustee for distribution among creditors as outlined in the approved repayment plan. 2. Income Withholding Order for Child Support and Alimony in Bankruptcy: — In cases where the debtor owes child support or alimony payments, this order mandates the employer to deduct the required amount from the debtor's income and remit it to the trustee, who then disburses it to the appropriate recipients. 3. Automatic Stay and Pay Order in Chapter 7 Bankruptcy: — In a Chapter 7 bankruptcy case, an automatic stay is usually put in place to halt collection activities by creditors. However, in certain situations, the court may issue an order requiring the debtor's employer to continue making deductions from their income and remitting it to the trustee for the benefit of the estate, even during the bankruptcy proceedings. Keywords: Wage Garnishment Order, Chapter 13 Bankruptcy, Income Withholding Order, Child Support, Alimony, Automatic Stay, Pay Order, Chapter 7 Bankruptcy, Collection Activities, Creditor Payment, Debt Repayment, Deductions.
