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.
Description: A Chicago Illinois Order Requiring Debtor's Employer to Remit Deductions from a Debtor's Income to Trustee is a legal document issued by a court in Chicago, Illinois. It mandates an employer to withhold and remit a portion of a debtor's income to a trustee in order to satisfy the debtor's outstanding debts or obligations. This order is typically issued in cases where an individual has filed for bankruptcy under either Chapter 7 or Chapter 13 bankruptcy codes. The purpose of the order is to ensure timely and proper payment to creditors by deducting the required amount directly from the debtor's income. There are different types of Chicago Illinois Orders Requiring Debtor's Employer to Remit Deductions from a Debtor's Income to Trustee, as follows: 1. Wage Garnishment Order: This order directs the debtor's employer to deduct a specified portion of the debtor's wages or salary from each paycheck and remit it to the designated trustee. The trustee is then responsible for distributing these funds among the debtor's creditors in accordance with the bankruptcy plan. 2. Salary Deduction Order: This order is similar to a wage garnishment order but is usually applied to individuals receiving a salary rather than hourly wages. It instructs the debtor's employer to deduct a specific amount from the debtor's overall salary and forward it to the trustee regularly. 3. Income Withholding Order: This type of order is typically used in non-bankruptcy cases, such as child support or spousal support payments. It requires the debtor's employer to withhold a particular sum from the debtor's income and send it directly to the trustee responsible for distributing the funds to the intended recipient. In all cases, these orders provide a legal mechanism for ensuring that a debtor's income is used to fulfill their financial obligations promptly. The employer, as the withholding agent, is legally bound to adhere to the court's order and remit the deducted amounts to the trustee as instructed. Failure to comply with these orders may lead to penalties and legal consequences for the employer.Description: A Chicago Illinois Order Requiring Debtor's Employer to Remit Deductions from a Debtor's Income to Trustee is a legal document issued by a court in Chicago, Illinois. It mandates an employer to withhold and remit a portion of a debtor's income to a trustee in order to satisfy the debtor's outstanding debts or obligations. This order is typically issued in cases where an individual has filed for bankruptcy under either Chapter 7 or Chapter 13 bankruptcy codes. The purpose of the order is to ensure timely and proper payment to creditors by deducting the required amount directly from the debtor's income. There are different types of Chicago Illinois Orders Requiring Debtor's Employer to Remit Deductions from a Debtor's Income to Trustee, as follows: 1. Wage Garnishment Order: This order directs the debtor's employer to deduct a specified portion of the debtor's wages or salary from each paycheck and remit it to the designated trustee. The trustee is then responsible for distributing these funds among the debtor's creditors in accordance with the bankruptcy plan. 2. Salary Deduction Order: This order is similar to a wage garnishment order but is usually applied to individuals receiving a salary rather than hourly wages. It instructs the debtor's employer to deduct a specific amount from the debtor's overall salary and forward it to the trustee regularly. 3. Income Withholding Order: This type of order is typically used in non-bankruptcy cases, such as child support or spousal support payments. It requires the debtor's employer to withhold a particular sum from the debtor's income and send it directly to the trustee responsible for distributing the funds to the intended recipient. In all cases, these orders provide a legal mechanism for ensuring that a debtor's income is used to fulfill their financial obligations promptly. The employer, as the withholding agent, is legally bound to adhere to the court's order and remit the deducted amounts to the trustee as instructed. Failure to comply with these orders may lead to penalties and legal consequences for the employer.
