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 Income to Trustee is a legal mechanism designed to ensure that a debtor's outstanding debts are being properly managed and paid off. When an individual files for bankruptcy, a trustee is appointed to oversee the debt repayment process. In certain cases, the court may issue an order requiring the debtor's employer to remit a portion of the debtor's income directly to the trustee. This type of order is commonly used in Chapter 7 bankruptcy cases, where the debtor's non-exempt assets are liquidated to pay off creditors. By directly receiving the debtor's income, the trustee can ensure that creditors receive their due payments and that the bankruptcy process is carried out in a fair and efficient manner. There are different variations of the New York Order Requiring Debtor's Employer to Remit Deductions from a Debtor's Income to Trustee, depending on the specific circumstances of the bankruptcy case. Some common types include: 1. Wage Garnishment Order: This order directs the debtor's employer to deduct a specific percentage or amount from the debtor's wages or salary and forward it directly to the trustee. The debtor's employer is legally obligated to comply with this order, as failing to do so may result in penalties or legal consequences. 2. Income Withholding Order: In cases where the debtor receives income from sources other than traditional employment, such as rental income or royalties, an income withholding order may be issued. This order instructs the relevant source of income to send a portion of the debtor's earnings to the trustee. 3. Periodic Payment Order: In situations where the debtor's income fluctuates or is irregular, the court may issue a periodic payment order. This order requires the debtor to make regular payments to the trustee, based on established payment intervals such as weekly, monthly, or quarterly. Failure to comply with this order may result in further legal action. It is important to note that the specific terms and conditions of a New York Order Requiring Debtor's Employer to Remit Deductions from a Debtor's Income to Trustee can vary depending on the details of the individual bankruptcy case. Consulting with a qualified bankruptcy attorney is essential to understanding the nuances of such orders and ensuring compliance with legal obligations.
