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: Understanding the Oklahoma Order Requiring Debtor's Employer to Remit Deductions from a Debtor's Income to Trustee Introduction: In Oklahoma, a legal mechanism called the Order Requiring Debtor's Employer to Remit Deductions from a Debtor's Income to Trustee plays a crucial role in debt repayment and the protection of creditors' rights. This article aims to provide a comprehensive description of this order, explaining its purpose, process, and its different variations, if any. Keywords: Oklahoma, order, debtor, employer, remit, deductions, income, trustee, debt repayment, creditors' rights, variations. 1. Purpose of the Oklahoma Order Requiring Debtor's Employer to Remit Deductions: The purpose of this order is to ensure that debtors fulfill their financial obligations by authorizing the trustee to collect a portion of their income directly from their employer. It serves as a protective measure for creditors, ensuring timely and consistent repayment. 2. Process of Obtaining the Order: To obtain this order, the creditor files a motion with the court requesting the debtor's employer to deduct a specific amount from their income and remit it to the designated trustee. The court then evaluates the motion, considering the debtor's financial situation, outstanding debts, and the creditor's claims before issuing the order. 3. Implementation and Execution: Once the court grants the order, it is served to the debtor's employer, who is legally obligated to comply. The employer deducts the specified amount from the debtor's income, typically from each paycheck, and transfers it directly to the trustee. This ensures consistent repayment over an agreed-upon period, as determined by the court. 4. Potential Variations of the Oklahoma Order: While the general concept of the order remains consistent, there may be variations based on the nature of the debt or specific circumstances. These variations could include: a. Percentage-Based Order: Rather than a fixed amount, the court may authorize a percentage of the debtor's income to be deducted and remitted to the trustee. This is common when the debtor's income fluctuates or varies irregularly. b. Lump-Sum Order: In some cases, the court may order a one-time lump-sum payment deducted from the debtor's income. This is often employed when the debtor possesses a substantial amount of disposable income but struggles with a large debt. c. Priority Order: In situations where there are multiple creditors involved, the court may grant different orders with varying priority levels. This ensures that certain creditors receive their due prior to others, based on factors determined by the court (such as the nature of the debt or the creditor's legal standing). Conclusion: The Oklahoma Order Requiring Debtor's Employer to Remit Deductions from a Debtor's Income to Trustee is a significant legal instrument that facilitates the repayment of debt while protecting creditors' rights. By ensuring a reliable income stream for debt repayment, this order provides stability for debtors seeking to fulfill their financial obligations and promotes a fair and orderly debt resolution process.
