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 Kentucky Order Requiring Debtor's Employer to Remit Deductions from a Debtor's Income to Trustee is a legal instrument issued by a Kentucky court in relation to a bankruptcy case. This order ensures that the debtor's employer deducts a specific portion of the debtor's income and remits it directly to the trustee overseeing the bankruptcy proceedings. This helps to facilitate the repayment of debts and ensure equitable distribution among creditors. There are different types of Kentucky Orders Requiring Debtor's Employer to Remit Deductions from a Debtor's Income to Trustee, which may vary based on the specific circumstances of the bankruptcy case. Some common variations include: 1. Wage Garnishment Order: This type of order requires the debtor's employer to deduct a percentage of the debtor's wages or salary and send it to the trustee. The garnishment may continue until the debt is repaid or until a specified period determined by the court. 2. Income Withholding Order: This order mandates the debtor's employer to withhold a portion of the debtor's income, including wages, salaries, commissions, bonuses, or any other form of compensation. The employer is then directed to remit these deductions to the trustee as indicated in the order. 3. Trustee Levy Order: In cases where the debtor has non-wage income, such as rental income, royalties, or self-employment earnings, a trustee levy order may be issued. This order requires third parties, such as tenants, licensing authorities, or clients, to redirect a portion of the debtor's income directly to the trustee. 4. Lump Sum Payment Order: In certain bankruptcy cases, the debtor may be required to make a one-time lump sum payment toward their debts. A lump-sum payment order directs the debtor's employer to deduct a fixed amount from the debtor's income and remit it to the trustee as a single payment. These different types of Kentucky Orders Requiring Debtor's Employer to Remit Deductions from a Debtor's Income to Trustee are designed to ensure efficient debt repayment and safeguard the interests of the creditors. Compliance with these orders is necessary to facilitate the bankruptcy process and help achieve a fair distribution of the debtor's assets.A Kentucky Order Requiring Debtor's Employer to Remit Deductions from a Debtor's Income to Trustee is a legal instrument issued by a Kentucky court in relation to a bankruptcy case. This order ensures that the debtor's employer deducts a specific portion of the debtor's income and remits it directly to the trustee overseeing the bankruptcy proceedings. This helps to facilitate the repayment of debts and ensure equitable distribution among creditors. There are different types of Kentucky Orders Requiring Debtor's Employer to Remit Deductions from a Debtor's Income to Trustee, which may vary based on the specific circumstances of the bankruptcy case. Some common variations include: 1. Wage Garnishment Order: This type of order requires the debtor's employer to deduct a percentage of the debtor's wages or salary and send it to the trustee. The garnishment may continue until the debt is repaid or until a specified period determined by the court. 2. Income Withholding Order: This order mandates the debtor's employer to withhold a portion of the debtor's income, including wages, salaries, commissions, bonuses, or any other form of compensation. The employer is then directed to remit these deductions to the trustee as indicated in the order. 3. Trustee Levy Order: In cases where the debtor has non-wage income, such as rental income, royalties, or self-employment earnings, a trustee levy order may be issued. This order requires third parties, such as tenants, licensing authorities, or clients, to redirect a portion of the debtor's income directly to the trustee. 4. Lump Sum Payment Order: In certain bankruptcy cases, the debtor may be required to make a one-time lump sum payment toward their debts. A lump-sum payment order directs the debtor's employer to deduct a fixed amount from the debtor's income and remit it to the trustee as a single payment. These different types of Kentucky Orders Requiring Debtor's Employer to Remit Deductions from a Debtor's Income to Trustee are designed to ensure efficient debt repayment and safeguard the interests of the creditors. Compliance with these orders is necessary to facilitate the bankruptcy process and help achieve a fair distribution of the debtor's assets.
