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: North Carolina Order Requiring Debtor's Employer to Remit Deductions from a Debtor's Income to Trustee: A Comprehensive Overview Introduction: In North Carolina, an Order Requiring Debtor's Employer to Remit Deductions from a Debtor's Income to Trustee is an important legal provision that empowers a trustee to collect funds directly from a debtor's income through their employer. This article provides a detailed description of this order, its purpose, the process involved, and its key variations. 1. Understanding the Purpose: The primary objective of a North Carolina Order Requiring Debtor's Employer to Remit Deductions from a Debtor's Income to Trustee is to facilitate the collection of owed debts by allowing the trustee to receive regular payments directly from the debtor's employer. This order effectively assists in satisfying the debtor's obligations towards creditors. 2. How It Works: When a debtor falls behind on their financial obligations, a creditor can file a motion in court requesting an Order Requiring Debtor's Employer to Remit Deductions. The judge then reviews the case, and if approved, issues the order. Subsequently, the trustee working on behalf of the creditor submits the order to the debtor's employer, notifying them to deduct a specified amount from the debtor's income and remit it to the trustee. 3. Key Variations: There are different types of North Carolina Orders Requiring Debtor's Employer to Remit Deductions from a Debtor's Income to Trustee, including: a) Wage Garnishment Order: In cases of wage garnishment, the court issues an order directing the debtor's employer to withhold a specific portion of the debtor's wages or salary and transfer it directly to the trustee. This provides a consistent flow of funds towards the settlement of debts. b) Income Execution Order: In an income execution scenario, the order requires the debtor's employer to earmark a predetermined portion of the debtor's income to be sent directly to the trustee. This order is generally effective until the debt is fully repaid. c) Support Order: A support order is specifically designed for enforcing child support or alimony payments. This order mandates the debtor's employer to deduct the appropriate amount from their income and remit it directly to the trustee, ensuring that financial support obligations are met. Conclusion: North Carolina Orders Requiring Debtor's Employer to Remit Deductions from a Debtor's Income to Trustee serve as crucial mechanisms for collecting outstanding debts. By issuing such orders, the court enables creditors to receive regular contributions towards the debt repayment process. Understanding the purpose, process, and different variations of these orders is vital for both creditors and debtors involved in financial disputes in North Carolina.Title: North Carolina Order Requiring Debtor's Employer to Remit Deductions from a Debtor's Income to Trustee: A Comprehensive Overview Introduction: In North Carolina, an Order Requiring Debtor's Employer to Remit Deductions from a Debtor's Income to Trustee is an important legal provision that empowers a trustee to collect funds directly from a debtor's income through their employer. This article provides a detailed description of this order, its purpose, the process involved, and its key variations. 1. Understanding the Purpose: The primary objective of a North Carolina Order Requiring Debtor's Employer to Remit Deductions from a Debtor's Income to Trustee is to facilitate the collection of owed debts by allowing the trustee to receive regular payments directly from the debtor's employer. This order effectively assists in satisfying the debtor's obligations towards creditors. 2. How It Works: When a debtor falls behind on their financial obligations, a creditor can file a motion in court requesting an Order Requiring Debtor's Employer to Remit Deductions. The judge then reviews the case, and if approved, issues the order. Subsequently, the trustee working on behalf of the creditor submits the order to the debtor's employer, notifying them to deduct a specified amount from the debtor's income and remit it to the trustee. 3. Key Variations: There are different types of North Carolina Orders Requiring Debtor's Employer to Remit Deductions from a Debtor's Income to Trustee, including: a) Wage Garnishment Order: In cases of wage garnishment, the court issues an order directing the debtor's employer to withhold a specific portion of the debtor's wages or salary and transfer it directly to the trustee. This provides a consistent flow of funds towards the settlement of debts. b) Income Execution Order: In an income execution scenario, the order requires the debtor's employer to earmark a predetermined portion of the debtor's income to be sent directly to the trustee. This order is generally effective until the debt is fully repaid. c) Support Order: A support order is specifically designed for enforcing child support or alimony payments. This order mandates the debtor's employer to deduct the appropriate amount from their income and remit it directly to the trustee, ensuring that financial support obligations are met. Conclusion: North Carolina Orders Requiring Debtor's Employer to Remit Deductions from a Debtor's Income to Trustee serve as crucial mechanisms for collecting outstanding debts. By issuing such orders, the court enables creditors to receive regular contributions towards the debt repayment process. Understanding the purpose, process, and different variations of these orders is vital for both creditors and debtors involved in financial disputes in North Carolina.
