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 San Bernardino 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 San Bernardino, California, that mandates an employer to withhold a certain portion of a debtor's income and remit it directly to the appointed trustee. This order is typically part of a bankruptcy case and aims to ensure that the debtor's financial obligations are met and their assets are distributed fairly among creditors. There are different types of San Bernardino California Orders Requiring Debtor's Employer to Remit Deductions from a Debtor's Income to Trustee, each serving a specific purpose: 1. Wage Garnishment Order: This order entitles the trustee to garnish a specific percentage or amount from the debtor's wages until the debt is paid off. The employer is legally bound to deduct the specified portion from the debtor's paycheck and send it directly to the trustee. 2. Child Support Order: In cases involving child support arrears, a specific type of order can be issued by the court to enforce the debtor's responsibility to pay child support. This order requires the debtor's employer to withhold a portion of their income and transfer it to the trustee, who then distributes the funds to the designated recipient, typically the custodial parent. 3. Spousal Support Order: Similar to the child support order, a spousal support order compels the debtor's employer to withhold a portion of their income and remit it to the trustee responsible for disbursing the funds to the spousal support recipient. 4. Tax Levy Order: If a debtor owes back taxes to federal or state tax authorities, a tax levy order may be issued. This order authorizes the trustee to collect the owed amount by instructing the debtor's employer to remit a portion of their income directly to the trustee, who then forwards it to the relevant tax agency. These San Bernardino California orders are designed to facilitate the collection and distribution of funds owed by debtors, ensuring their creditors receive the appropriate compensation and debts are resolved in an orderly manner. It is crucial for employers to comply with such orders, as failure to do so may result in legal consequences.A San Bernardino 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 San Bernardino, California, that mandates an employer to withhold a certain portion of a debtor's income and remit it directly to the appointed trustee. This order is typically part of a bankruptcy case and aims to ensure that the debtor's financial obligations are met and their assets are distributed fairly among creditors. There are different types of San Bernardino California Orders Requiring Debtor's Employer to Remit Deductions from a Debtor's Income to Trustee, each serving a specific purpose: 1. Wage Garnishment Order: This order entitles the trustee to garnish a specific percentage or amount from the debtor's wages until the debt is paid off. The employer is legally bound to deduct the specified portion from the debtor's paycheck and send it directly to the trustee. 2. Child Support Order: In cases involving child support arrears, a specific type of order can be issued by the court to enforce the debtor's responsibility to pay child support. This order requires the debtor's employer to withhold a portion of their income and transfer it to the trustee, who then distributes the funds to the designated recipient, typically the custodial parent. 3. Spousal Support Order: Similar to the child support order, a spousal support order compels the debtor's employer to withhold a portion of their income and remit it to the trustee responsible for disbursing the funds to the spousal support recipient. 4. Tax Levy Order: If a debtor owes back taxes to federal or state tax authorities, a tax levy order may be issued. This order authorizes the trustee to collect the owed amount by instructing the debtor's employer to remit a portion of their income directly to the trustee, who then forwards it to the relevant tax agency. These San Bernardino California orders are designed to facilitate the collection and distribution of funds owed by debtors, ensuring their creditors receive the appropriate compensation and debts are resolved in an orderly manner. It is crucial for employers to comply with such orders, as failure to do so may result in legal consequences.
