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 South Carolina Order Requiring Debtor's Employer to Remit Deductions from a Debtor's Paycheck to Trustee, also known as a Wage Garnishment Order or Income Withholding Order, is a legal directive issued by a court to collect outstanding debts owed by a debtor. This order compels the debtor's employer to withhold a certain portion of the debtor's wages or salary and remit it directly to the bankruptcy trustee, who in turn distributes the funds to creditors. The South Carolina Order Requiring Debtor's Employer to Remit Deductions from a Debtor's Paycheck to Trustee is a powerful tool utilized in bankruptcy cases to ensure that creditors receive a fair share of the debtor's income. It acts as an efficient debt collection mechanism by providing a streamlined process for deducting and transferring funds from the debtor's paycheck. The primary purpose of this order is to aid the debtor in satisfying their debts while protecting the rights of creditors. By channeling a portion of the debtor's wages to the trustee, it ensures a consistent and reliable payment stream, making it a desirable option for both creditors and debtors. There are various types of South Carolina Orders Requiring Debtor's Employer to Remit Deductions from a Debtor's Paycheck to the Trustee: 1. Chapter 7 Wage Garnishment Order: This type of order is issued in Chapter 7 bankruptcy cases, which involve the liquidation of the debtor's assets to repay creditors. It allows the trustee to garnish the debtor's wages to facilitate the disbursement of funds. 2. Chapter 13 Wage Garnishment Order: In Chapter 13 bankruptcy cases, debtors propose a repayment plan to repay their debts over a specific period, usually three to five years. The Chapter 13 Wage Garnishment Order enables the trustee to collect funds from the debtor's wages as per the court-approved repayment plan. 3. Child Support Wage Garnishment Order: South Carolina law also allows for the issuance of wage garnishment orders specifically for collecting overdue child support payments. These orders may be separate from bankruptcy cases and can be filed by individuals seeking to enforce child support obligations. 4. Tax Garnishment Order: In cases of outstanding tax liabilities, the South Carolina Department of Revenue may obtain a garnishment order to collect unpaid taxes directly from the debtor's wages. These orders are separate from bankruptcy proceedings and are typically issued by the tax authorities themselves. It is important to note that South Carolina follows specific laws and regulations concerning wage garnishments. Employers must comply with these orders and remit the specified deductions to the trustee within the prescribed timeframes. Failure to do so can result in penalties and legal consequences. In summary, a South Carolina Order Requiring Debtor's Employer to Remit Deductions from a Debtor's Paycheck to Trustee is a crucial mechanism for debt collection in bankruptcy cases. By mandating an employer to withhold wages and transmit them to the trustee, it ensures a fair distribution of funds to creditors and helps debtors fulfill their financial obligations.
