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: Understanding Wyoming Order Requiring Debtor's Employer to Remit Deductions from a Debtor's Paycheck to Trustee Introduction: A Wyoming Order Requiring Debtor's Employer to Remit Deductions from a Debtor's Paycheck to Trustee is a legal directive employed in bankruptcy cases to ensure regular payments from a debtor's income towards repayment of their outstanding debts. This article aims to provide a detailed description of this order, its significance, and the various types that may exist. Key Concepts: 1. Wyoming Order: The Wyoming Order is a legal document issued by a bankruptcy court in Wyoming, designed to provide a structured framework for handling the financial obligations of a debtor involved in bankruptcy proceedings. 2. Debtor's Employer: The debtor's employer refers to the company or individual employing the debtor. In the context of a Wyoming Order, the employer's role becomes crucial in remitting specified deductions from the debtor's paycheck to a designated trustee. 3. Debtor's Paycheck: The debtor's paycheck consists of their regular income earned through employment. It serves as the primary source for executing deductions stipulated in the Wyoming Order. 4. Trustee: The trustee is an individual appointed by the bankruptcy court to oversee the debtor's case. They play a central role in enforcing the Wyoming Order and ensuring the debtor's obligations are met in a fair and transparent manner. Types of Wyoming Orders Requiring Debtor's Employer to Remit Deductions: 1. Wage Garnishment Order: This type of Wyoming Order mandates the employer to withhold a certain percentage of the debtor's wages and remit them directly to the trustee. The trustee, in turn, redistributes these funds among the debtor's creditors as per their priorities outlined in the bankruptcy proceedings. 2. Child Support Order: In cases where the debtor owes past due child support payments, a Wyoming Order can be issued to facilitate the deduction of child support directly from the debtor's paycheck. These deductions are then forwarded to the appropriate child support agency or trustee responsible for redistributing the funds to the designated recipients. 3. Tax Levy Order: A tax levy order empowers the Internal Revenue Service (IRS) to enforce deductions from the debtor's wages to fulfill any unpaid federal tax obligations. This type of Wyoming Order protects the government's interest in collecting overdue taxes and ensures regular remittance of the agreed-upon amount. Conclusion: A Wyoming Order Requiring Debtor's Employer to Remit Deductions from a Debtor's Paycheck to Trustee plays a vital role in facilitating debt repayment in bankruptcy cases. By understanding its significance and the different types that may apply, debtors, employers, trustees, and creditors can navigate bankruptcy proceedings more effectively, ensuring fair distribution of funds and compliance with court orders.
