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.
Maryland Order Requiring Debtor's Employer to Remit Deductions from a Debtor's Paycheck to Trustee is a legal provision that allows creditors to collect outstanding debts from debtors through their employment income. This order serves as a mechanism to ensure the timely remittance of funds by requiring a debtor's employer to deduct a specific amount from the debtor's paycheck and send it directly to the designated trustee. There are different types of Maryland Orders Requiring Debtor's Employer to Remit Deductions from a Debtor's Paycheck to Trustee, including: 1. Wage Garnishment Order: This type of order allows creditors to collect a portion of a debtor's wages directly from their employer in order to satisfy outstanding debts. 2. Child Support Order: When a debtor fails to meet their child support obligations, this order allows the designated trustee to collect a predetermined amount from the debtor's paycheck for the purpose of fulfilling their financial responsibilities towards their child. 3. Spousal Support Order: Similar to child support orders, a spousal support order allows the trustee to deduct a specified amount from the debtor's wages to satisfy alimony or spousal support obligations. 4. Tax Levy Order: In cases where a debtor owes unpaid taxes to the state or federal government, this order empowers the trustee to request the debtor's employer to remit deductions from the debtor's paycheck to cover the outstanding tax liability. 5. Student Loan Order: If a debtor defaults on their student loans, this order enables the trustee to collect a predetermined amount from the debtor's wages to fulfill the outstanding loan repayment obligations. These different types of Maryland Orders Requiring Debtor's Employer to Remit Deductions from a Debtor's Paycheck to Trustee ensure that creditors and relevant authorities can efficiently collect outstanding debts while respecting the debtor's earnings and financial capabilities.
