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.
Washington Order Requiring Debtor's Employer to Remit Deductions from a Debtor's Paycheck to Trustee is a legal mechanism designed to facilitate the collection of debts owed by a debtor in the state of Washington. This order legally obligates an employer to withhold a portion of a debtor's paycheck and remit it directly to a trustee appointed by the court. This process ensures that creditors receive the payment they are entitled to and helps satisfy the debtor's financial obligations. There are several types of Washington Order Requiring Debtor's Employer to Remit Deductions from a Debtor's Paycheck to Trustee, each serving a specific purpose: 1. Wage Garnishment Order: This type of order allows a creditor to deduct a specified amount or percentage from a debtor's wages and send it to the trustee. The trustee then distributes the funds to the appropriate creditors on a priority basis. 2. Child Support Order: In cases involving unpaid child support, this order enables the collection of overdue payments from a debtor's wages. By authorizing the employer to withhold the required amount, the order helps ensure that children receive the financial support they need. 3. Tax Levy Order: If a debtor has unpaid taxes, the Washington Order Requiring Debtor's Employer to Remit Deductions from a Debtor's Paycheck to Trustee can include a tax levy order. This order allows the Internal Revenue Service (IRS) or other tax authorities to seize a portion of the debtor's wages, ensuring prompt payment of taxes owed. 4. Student Loan Order: For individuals with outstanding student loan debt, this type of order allows the lender or loan service to garnish a portion of the debtor's wages to fulfill the repayment obligations. These orders facilitate the collection of student loan payments, ensuring borrowers meet their financial responsibilities. It's important to note that these orders are issued by the court or relevant authorities only after proper legal proceedings, giving debtors an opportunity to contest or negotiate the terms of the order. The specific terms and conditions of each order may vary based on the type of debt owed and the debtor's individual circumstances. By employing Washington Orders Requiring Debtor's Employer to Remit Deductions from a Debtor's Paycheck to Trustee, the legal system in Washington ensures that debts are collected efficiently, allowing both creditors and debtors to address their financial obligations and protect their legal rights.
