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.
Los Angeles California Order Requiring Debtor's Employer to Remit Deductions from a Debtor's Income to Trustee is a legal document issued by the court in Los Angeles, California. This order directs the debtor's employer to withhold a specific amount of money from the debtor's income and send it directly to the appointed trustee. This process is intended to ensure that the debtor's obligations towards certain debts or financial obligations are met in a timely manner. There are different types of Los Angeles California Order Requiring Debtor's Employer to Remit Deductions from a Debtor's Income to Trustee, including: 1. Chapter 7 Order: This order is typically issued in a Chapter 7 bankruptcy case, where the debtor's non-exempt assets are liquidated to pay off creditors. The order requires the employer to deduct a portion of the debtor's income and remit it to the trustee to be distributed among the creditors. 2. Chapter 13 Order: In a Chapter 13 bankruptcy case, the debtor enters into a repayment plan, which allows them to retain their assets while repaying their debts over a specified period. The order in this case requires the debtor's employer to deduct a fixed amount from the debtor's income and send it to the trustee, who then distributes it to the creditors according to the approved repayment plan. 3. Wage Garnishment Order: This type of order is not specific to bankruptcy cases but can be issued separately to collect debts owed by the debtor. When a creditor obtains a judgment against the debtor, they can request a wage garnishment order, which instructs the employer to deduct a portion of the debtor's income to satisfy the debt. The deducted amount is then sent to the designated trustee or creditor. In conclusion, a Los Angeles California Order Requiring Debtor's Employer to Remit Deductions from a Debtor's Income to Trustee is a vital legal instrument used in bankruptcy cases or wage garnishment situations to ensure timely repayment of debts.Los Angeles California Order Requiring Debtor's Employer to Remit Deductions from a Debtor's Income to Trustee is a legal document issued by the court in Los Angeles, California. This order directs the debtor's employer to withhold a specific amount of money from the debtor's income and send it directly to the appointed trustee. This process is intended to ensure that the debtor's obligations towards certain debts or financial obligations are met in a timely manner. There are different types of Los Angeles California Order Requiring Debtor's Employer to Remit Deductions from a Debtor's Income to Trustee, including: 1. Chapter 7 Order: This order is typically issued in a Chapter 7 bankruptcy case, where the debtor's non-exempt assets are liquidated to pay off creditors. The order requires the employer to deduct a portion of the debtor's income and remit it to the trustee to be distributed among the creditors. 2. Chapter 13 Order: In a Chapter 13 bankruptcy case, the debtor enters into a repayment plan, which allows them to retain their assets while repaying their debts over a specified period. The order in this case requires the debtor's employer to deduct a fixed amount from the debtor's income and send it to the trustee, who then distributes it to the creditors according to the approved repayment plan. 3. Wage Garnishment Order: This type of order is not specific to bankruptcy cases but can be issued separately to collect debts owed by the debtor. When a creditor obtains a judgment against the debtor, they can request a wage garnishment order, which instructs the employer to deduct a portion of the debtor's income to satisfy the debt. The deducted amount is then sent to the designated trustee or creditor. In conclusion, a Los Angeles California Order Requiring Debtor's Employer to Remit Deductions from a Debtor's Income to Trustee is a vital legal instrument used in bankruptcy cases or wage garnishment situations to ensure timely repayment of debts.
