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.
Title: Understanding the Hawaii Order Requiring Debtor's Employer to Remit Deductions from a Debtor's Paycheck to Trustee Introduction: Hawaii's legal system incorporates various mechanisms to manage debt repayment, one of which is the Hawaii Order Requiring Debtor's Employer to Remit Deductions from a Debtor's Paycheck to the Trustee. This order plays a crucial role in ensuring debtors fulfill their financial obligations effectively. In this article, we will explore the intricacies of this order, its purpose, and different types that may exist. 1. Definition and Purpose: The Hawaii Order Requiring Debtor's Employer to Remit Deductions from a Debtor's Paycheck to the Trustee is a court-issued order that mandates an employer to withhold a portion of an employee's earnings and transmit it directly to the trustee for the purpose of fulfilling the debtor's financial obligations. The order aims to facilitate the timely repayment of debts and protect the rights of both the debtor and the creditor. 2. Types of Hawaii Order Requiring Debtor's Employer to Remit Deductions: a. Wage Garnishment Order: Often referred to as an income execution order, this type of order authorizes the employer to withhold a specific percentage of the debtor's wages until the debt is satisfied. Regular deductions are made from each paycheck under the supervision of the trustee. b. Child Support Order: This type of order ensures that a portion of the debtor's wages is withheld and submitted to the trustee, who then forwards it to the appropriate recipient for child support payments. It aims to provide financial stability for children and ensure they receive the necessary support. 3. Process of Obtaining the Order: a. Filing a Petition: To initiate the process, the creditor or trustee files a petition in the relevant Hawaii court, providing evidence of the debtor's outstanding debt and the need for an order. b. Review and Consent: The court reviews the petition and supporting documents, analyzing the debtor's financial situation and determining if a deduction order is appropriate. The debtor may either consent to the order or contest it during this stage. c. Court Approval: If the court finds the order justifiable and reasonable, taking into account the debtor's ability to meet essential living expenses, it approves the order and issues it to the debtor's employer. d. Implementation: Once received, the employer follows the instructions provided in the order, deducting the specified amount from the debtor's paycheck and remitting it directly to the trustee as indicated. Conclusion: The Hawaii Order Requiring Debtor's Employer to Remit Deductions from a Debtor's Paycheck to the Trustee is a vital legal mechanism designed to facilitate debt repayment effectively while ensuring fair treatment of both the debtor and the creditor. By exploring different types of orders, such as wage garnishment and child support orders, this article provides an overview of how the process works and the role it plays in Hawaii's legal system.
