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 New York Order Requiring Debtor's Employer to Remit Deductions from a Debtor's Paycheck to Trustee is a legal document issued by a court in New York that directs an employer to withhold certain amounts from a debtor's paycheck and remit them directly to a trustee. This order is commonly used in bankruptcy cases to ensure the repayment of debts owed by the debtor. In order to understand the different types of New York Orders Requiring Debtor's Employer to Remit Deductions from a Debtor's Paycheck to Trustee, it is important to consider the various scenarios in which these orders may be issued. Here are a few of the different types: 1. Chapter 7 Wage Deduction Order: This type of order is issued in a Chapter 7 bankruptcy case, which is a liquidation bankruptcy. It requires the debtor's employer to deduct a certain amount from the debtor's wages and remit the funds to the bankruptcy trustee. These funds are then used to repay creditors according to the bankruptcy plan. 2. Chapter 13 Wage Deduction Order: In a Chapter 13 bankruptcy case, which involves a repayment plan, the court may issue a wage deduction order instructing the employer to withhold a specific amount from the debtor's paycheck and send it directly to the trustee. These funds are utilized to repay the debtor's outstanding debts over a period of three to five years. 3. Wage Garnishment Order: This type of order is not specific to bankruptcy cases but may be issued in other legal proceedings where the debtor owes a debt. A wage garnishment order requires the debtor's employer to withhold a portion of the debtor's wages to satisfy the outstanding debt. The withheld funds are then sent to a designated trustee or creditor, depending on the nature of the debt. 4. Child Support or Alimony Order: In cases where a debtor owes child support or alimony payments, a wage deduction order may be issued to enforce the collection of these obligations. The order directs the employer to deduct the required amount from the debtor's wages and remit it to the appropriate recipient, such as the custodial parent or ex-spouse. These are just a few examples of the different types of New York Orders Requiring Debtor's Employer to Remit Deductions from a Debtor's Paycheck to Trustee. Each order is tailored to a specific legal situation and serves to facilitate the collection and repayment of outstanding debts or support obligations.A New York Order Requiring Debtor's Employer to Remit Deductions from a Debtor's Paycheck to Trustee is a legal document issued by a court in New York that directs an employer to withhold certain amounts from a debtor's paycheck and remit them directly to a trustee. This order is commonly used in bankruptcy cases to ensure the repayment of debts owed by the debtor. In order to understand the different types of New York Orders Requiring Debtor's Employer to Remit Deductions from a Debtor's Paycheck to Trustee, it is important to consider the various scenarios in which these orders may be issued. Here are a few of the different types: 1. Chapter 7 Wage Deduction Order: This type of order is issued in a Chapter 7 bankruptcy case, which is a liquidation bankruptcy. It requires the debtor's employer to deduct a certain amount from the debtor's wages and remit the funds to the bankruptcy trustee. These funds are then used to repay creditors according to the bankruptcy plan. 2. Chapter 13 Wage Deduction Order: In a Chapter 13 bankruptcy case, which involves a repayment plan, the court may issue a wage deduction order instructing the employer to withhold a specific amount from the debtor's paycheck and send it directly to the trustee. These funds are utilized to repay the debtor's outstanding debts over a period of three to five years. 3. Wage Garnishment Order: This type of order is not specific to bankruptcy cases but may be issued in other legal proceedings where the debtor owes a debt. A wage garnishment order requires the debtor's employer to withhold a portion of the debtor's wages to satisfy the outstanding debt. The withheld funds are then sent to a designated trustee or creditor, depending on the nature of the debt. 4. Child Support or Alimony Order: In cases where a debtor owes child support or alimony payments, a wage deduction order may be issued to enforce the collection of these obligations. The order directs the employer to deduct the required amount from the debtor's wages and remit it to the appropriate recipient, such as the custodial parent or ex-spouse. These are just a few examples of the different types of New York Orders Requiring Debtor's Employer to Remit Deductions from a Debtor's Paycheck to Trustee. Each order is tailored to a specific legal situation and serves to facilitate the collection and repayment of outstanding debts or support obligations.