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 Wisconsin Order Requiring Debtor's Employer to Remit Deductions from a Debtor's Paycheck to Trustee is a legal document issued by the court in Wisconsin. It outlines the obligation of an employer to withhold certain deductions from a debtor's paycheck and remit them directly to a trustee appointed by the court. This order serves as a mechanism to enforce repayment of outstanding debts and facilitate the debtor's participation in a bankruptcy case. There are different types of Wisconsin Orders Requiring Debtor's Employer to Remit Deductions from a Debtor's Paycheck to Trustee, including: 1. Wage Garnishment Order: This type of order allows a trustee to collect a portion of the debtor's wages directly from their employer. The amount of the garnishment is determined by the court based on the debtor's disposable income and other relevant factors. 2. Debt Repayment Order: In cases where a debtor is participating in a repayment plan under Chapter 13 bankruptcy, the court may issue an order requiring the debtor's employer to deduct a specific amount from their paycheck and transmit it to the trustee. This ensures that the debtor's repayment obligations are met consistently. 3. Child Support or Alimony Order: In situations where a debtor owes unpaid child support or alimony, the court can issue an order requiring their employer to withhold the appropriate amount from their wages and remit it to the trustee responsible for distributing these payments to the designated recipients. 4. Tax Levy Order: In some instances, the court may authorize the IRS or state tax authority to issue a levy against a debtor's wages. This allows for the collection of outstanding tax debt directly from the debtor's paycheck through their employer. These orders are typically issued after careful consideration of the debtor's financial circumstances and in accordance with relevant bankruptcy laws. They play a crucial role in ensuring the fair distribution of funds to satisfy outstanding debts and support the debtor's repayment efforts. Compliance with such orders is mandatory for employers and failure to comply may result in legal consequences.
