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: West Virginia Order Requiring Debtor's Employer to Remit Deductions from a Debtor's Paycheck to Trustee: A Comprehensive Overview Description: The West Virginia Order Requiring Debtor's Employer to Remit Deductions from a Debtor's Paycheck to Trustee is a legal instrument utilized in the state of West Virginia to ensure timely collection and distribution of payments towards debts and obligations owed by a debtor. This detailed description will provide an in-depth understanding of this order, its purpose, application, and potential variations. Keywords: West Virginia, Order Requiring Debtor's Employer, Remit Deductions, Paycheck, Trustee 1. Purpose and Importance: The West Virginia Order Requiring Debtor's Employer to Remit Deductions from a Debtor's Paycheck to Trustee plays a vital role in facilitating debt repayment by diverting a portion of the debtor's earnings directly to the trustee. This critical action helps ensure creditors receive their entitled payments, making it an essential tool in debt recovery proceedings within the state. 2. Application and Execution: This order is issued by the court and directed to the debtor's employer, legally obligating them to deduct a predetermined amount from the debtor's paycheck and remit it to the trustee. The order ensures compliance by authorizing the employer to withhold and forward these payments promptly, directly benefiting the creditor. 3. Supportive Legal Framework: The West Virginia Order Requiring Debtor's Employer to Remit Deductions from a Debtor's Paycheck to Trustee operates within the framework of West Virginia state laws governing debt collection and bankruptcy proceedings. It draws its authority from relevant sections of the West Virginia Code and must be crafted in accordance with these statutory provisions. 4. Types of Orders: Common variations of the West Virginia Order Requiring Debtor's Employer to Remit Deductions from a Debtor's Paycheck to Trustee may include: a. Wage Garnishment Order: This order instructs the employer to deduct a specific portion of the debtor's wages or salary for debt repayment, continuing until the debt is settled or according to a predetermined timeline. b. Child Support Order: Ensures that a debtor's employer deducts and remits a portion of their paycheck specifically for child support payments, providing a reliable means to fulfill their financial responsibilities. 5. Compliance and Consequences: Employers are legally bound to strictly adhere to the West Virginia Order Requiring Debtor's Employer to Remit Deductions from a Debtor's Paycheck to Trustee. Non-compliance can lead to legal repercussions, including sanctions, fines, or even contempt of court charges. In conclusion, the West Virginia Order Requiring Debtor's Employer to Remit Deductions from a Debtor's Paycheck to Trustee is a powerful instrument that facilitates debt repayment, channeling funds directly from the debtor's paycheck to the trustee. Its existence within the West Virginia legal system reinforces the rights of creditors and provides a structured mechanism for creditors to recoup outstanding debts owed to them.
