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.
An Ohio Order Requiring Debtor's Employer to Remit Deductions from a Debtor's Income to the Trustee is a legal document issued by a bankruptcy court in Ohio. This order mandates the debtor's employer to withhold certain deductions from the debtor's salary and remit those funds directly to the bankruptcy trustee. Ohio has two main 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 directs the debtor's employer to withhold a portion of the debtor's wages or salary, typically a predetermined percentage or a specific amount, and send it directly to the bankruptcy trustee. The garnished wages are used to repay creditors or fulfill other obligations in accordance with the debtor's bankruptcy or repayment plan. 2. Income withholding order: In cases where the debtor receives income from sources other than regular employment, such as rental income or business profits, an income withholding order can be issued. This order requires any third-party or entity making payments to the debtor to redirect a portion of those funds directly to the bankruptcy trustee for distribution. The purpose of these orders is to ensure a fair and orderly distribution of funds to satisfy the debtor's financial obligations. By mandating that the debtor's employer or other income sources remit deductions directly to the trustee, the court can exercise greater control over the debtor's financial affairs and ensure that creditors receive their due payments. These Ohio orders are an essential tool in the bankruptcy process, enabling the court to monitor and regulate the debtor's income to facilitate a more efficient resolution of debts. It protects the rights of both debtors and creditors, ensuring a transparent and equitable approach to debt repayment. In summary, an Ohio Order Requiring Debtor's Employer to Remit Deductions from a Debtor's Income to the Trustee is a legal instrument that facilitates the payment of debts in bankruptcy cases. It can take the form of a wage garnishment order or an income withholding order, depending on the debtor's income sources. These orders play a crucial role in maintaining a fair and orderly bankruptcy process, benefiting both the debtor and creditors involved.
