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.
Indiana Order Requiring Debtor's Employer to Remit Deductions from a Debtor's Paycheck to Trustee is a legal directive that enables the collection of unpaid debts by allowing for automatic deductions from a debtor's paycheck. This type of order is authorized under Indiana law and provides an effective means to enforce court-ordered payments or discharge debts through wage garnishment. Debtors in Indiana who fail to meet their financial obligations can face consequences such as wage garnishment, a process that allows a creditor to collect a portion of a debtor's earnings to satisfy a debt. Upon obtaining a judgment, a creditor can request the court to issue an Indiana Order Requiring Debtor's Employer to Remit Deductions from a Debtor's Paycheck to Trustee. There are various types of Indiana Orders Requiring Debtor's Employer to Remit Deductions from a Debtor's Paycheck to Trustee, depending on the specific circumstances of the case. Some common types include: 1. Wage Garnishment Order: This type of order requires an employer to withhold a specific percentage or flat amount from the debtor's wages and remit it directly to the trustee for distribution to the creditor(s). The amount to be deducted is typically determined based on the debtor's disposable income and the amount owed to the creditor. 2. Deduction Order for Child Support: In cases where the debt owed is related to child support arrears, a specific type of deduction order may be issued. This order requires the employer to withhold the designated child support amount from the debtor's paycheck and deposit it with the trustee for further distribution to the custodial parent or designated child support agency. 3. Tax Levy Order: In situations where a debtor owes unpaid taxes, the Indiana Order Requiring Debtor's Employer to Remit Deductions from a Debtor's Paycheck to Trustee can also act as a tax levy order. This allows the employer to deduct a specific portion of the debtor's wages to satisfy the outstanding tax debt, which is then remitted to the trustee. It is important to note that the specific terms and conditions of an Indiana Order Requiring Debtor's Employer to Remit Deductions from a Debtor's Paycheck to Trustee may vary depending on the court's discretion, the type of debt, and other relevant factors. Debtors should seek legal advice and understand their rights and obligations when faced with such an order to ensure proper compliance and protection of their interests.
