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.
The Virgin Islands Order Requiring Debtor's Employer to Remit Deductions from a Debtor's Paycheck to Trustee is a legal provision aimed at facilitating debt repayment to creditors by directing a debtor's employer to deduct and remit a portion of the debtor's paycheck to a designated trustee. This order, a powerful tool in bankruptcy cases, ensures the orderly distribution of funds to satisfy outstanding debts. In the Virgin Islands, there are two types of orders that could be issued to require an employer's involvement in recovering debts: Wage Garnishment Order and Wage Deduction Order. A Wage Garnishment Order entails the direct withholding of a specific amount from a debtor's wages, which is then sent to the trustee responsible for managing the debt repayment process. This order is typically issued when a debtor fails to meet their financial obligations. On the other hand, a Wage Deduction Order is more flexible, allowing for a percentage deduction or a fixed amount to be remitted from the debtor's paycheck to the trustee. This order is commonly utilized in cases where a debtor is actively working and earns income but struggles to meet their financial commitments. Both types of orders incorporate the concept of wage withholding, ensuring that creditors receive a fair share of the debtor's income and allowing for the gradual repayment of outstanding debts. These orders provide a legal framework that facilitates the efficient handling of bankruptcy cases in the Virgin Islands, ensuring a fair and equitable distribution of funds to creditors while assisting debtors in addressing their financial obligations.The Virgin Islands Order Requiring Debtor's Employer to Remit Deductions from a Debtor's Paycheck to Trustee is a legal provision aimed at facilitating debt repayment to creditors by directing a debtor's employer to deduct and remit a portion of the debtor's paycheck to a designated trustee. This order, a powerful tool in bankruptcy cases, ensures the orderly distribution of funds to satisfy outstanding debts. In the Virgin Islands, there are two types of orders that could be issued to require an employer's involvement in recovering debts: Wage Garnishment Order and Wage Deduction Order. A Wage Garnishment Order entails the direct withholding of a specific amount from a debtor's wages, which is then sent to the trustee responsible for managing the debt repayment process. This order is typically issued when a debtor fails to meet their financial obligations. On the other hand, a Wage Deduction Order is more flexible, allowing for a percentage deduction or a fixed amount to be remitted from the debtor's paycheck to the trustee. This order is commonly utilized in cases where a debtor is actively working and earns income but struggles to meet their financial commitments. Both types of orders incorporate the concept of wage withholding, ensuring that creditors receive a fair share of the debtor's income and allowing for the gradual repayment of outstanding debts. These orders provide a legal framework that facilitates the efficient handling of bankruptcy cases in the Virgin Islands, ensuring a fair and equitable distribution of funds to creditors while assisting debtors in addressing their financial obligations.
