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.
Nebraska Order Requiring Debtor's Employer to Remit Deductions from a Debtor's Income to Trustee is a legal procedure mandated by the state of Nebraska for managing the financial affairs of debtors who have filed for bankruptcy. This order ensures that the debtor's employer is legally bound to withhold a portion of the debtor's income and remit it directly to the trustee appointed by the bankruptcy court. In Nebraska, there are two different types of Orders Requiring Debtor's Employer to Remit Deductions from a Debtor's Income to Trustee: 1. Wage Garnishment Order: This type of order allows the trustee to deduct a specific amount of money directly from the debtor's paycheck. The employer is legally obligated to withhold this pre-determined amount from the debtor's salary and submit it to the trustee on a regular basis. The specific amount is usually determined based on the debtor's income, expenses, and the terms outlined in the bankruptcy plan. 2. Income Withholding Order: This order is typically put into effect when the debtor has a source of income other than regular employment. This can include income from freelance work, rental properties, or any other form of periodic income. The order requires the debtor to provide information about this additional income source to the trustee, who will then issue an income withholding order to the debtor's employer or relevant entity. The employer or entity is then responsible for remitting the designated portion of the debtor's income to the trustee. Both of these types of orders are crucial in the bankruptcy process, as they ensure that the debtor's income is properly managed and allocated towards fulfilling their debt obligations. It is important for debtors, employers, and trustees to understand and comply with these orders to ensure the smooth functioning of bankruptcy proceedings in Nebraska.Nebraska Order Requiring Debtor's Employer to Remit Deductions from a Debtor's Income to Trustee is a legal procedure mandated by the state of Nebraska for managing the financial affairs of debtors who have filed for bankruptcy. This order ensures that the debtor's employer is legally bound to withhold a portion of the debtor's income and remit it directly to the trustee appointed by the bankruptcy court. In Nebraska, there are two different types of Orders Requiring Debtor's Employer to Remit Deductions from a Debtor's Income to Trustee: 1. Wage Garnishment Order: This type of order allows the trustee to deduct a specific amount of money directly from the debtor's paycheck. The employer is legally obligated to withhold this pre-determined amount from the debtor's salary and submit it to the trustee on a regular basis. The specific amount is usually determined based on the debtor's income, expenses, and the terms outlined in the bankruptcy plan. 2. Income Withholding Order: This order is typically put into effect when the debtor has a source of income other than regular employment. This can include income from freelance work, rental properties, or any other form of periodic income. The order requires the debtor to provide information about this additional income source to the trustee, who will then issue an income withholding order to the debtor's employer or relevant entity. The employer or entity is then responsible for remitting the designated portion of the debtor's income to the trustee. Both of these types of orders are crucial in the bankruptcy process, as they ensure that the debtor's income is properly managed and allocated towards fulfilling their debt obligations. It is important for debtors, employers, and trustees to understand and comply with these orders to ensure the smooth functioning of bankruptcy proceedings in Nebraska.
