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.
In Wake North Carolina, an Order Requiring Debtor's Employer to Remit Deductions from a Debtor's Income to Trustee is a legal provision that allows a trustee to collect payments from a debtor's employer on behalf of the trustee or the bankruptcy estate. This order is issued by the court and helps ensure that the debtor's financial obligations are met during the bankruptcy process. This type of order is typically issued when a debtor files for bankruptcy and is unable to meet their financial obligations. It allows the trustee to collect regular payments directly from the debtor's employer, who is then responsible for remitting the deducted amount to the trustee. The purpose of this order is to secure consistent payments towards the debtor's outstanding debts and provide assurance to creditors that their claims are being addressed. There are several variations of the Order Requiring Debtor's Employer to Remit Deductions from a Debtor's Income to Trustee, each designed to suit different bankruptcy scenarios: 1. Wage Garnishment Order: This order directs the debtor's employer to withhold a specific portion of the debtor's wages and remit it to the trustee. The withheld amount is determined based on the debtor's income, allowable expenses, and the nature of the bankruptcy proceedings. 2. Automatic Payroll Deduction Order: In this type of order, the debtor's employer is required to automatically deduct a predetermined amount from the debtor's paycheck and send it directly to the trustee. This ensures a regular flow of payments towards the debtor's outstanding debts. 3. Bank Account Levy Order: Sometimes, instead of directly deducting from the debtor's income, the trustee may opt to instruct the debtor's bank to freeze a specific amount in the debtor's account(s) and transfer it to the trustee. This form of order is used when the debtor's main source of income is not from traditional employment but rather from other sources like investments or self-employment. The type of order issued will depend on the specific circumstances of the debtor and the bankruptcy case at hand. These orders aim to facilitate the fair and efficient collection of funds for the benefit of creditors and the successful resolution of the bankruptcy proceedings.In Wake North Carolina, an Order Requiring Debtor's Employer to Remit Deductions from a Debtor's Income to Trustee is a legal provision that allows a trustee to collect payments from a debtor's employer on behalf of the trustee or the bankruptcy estate. This order is issued by the court and helps ensure that the debtor's financial obligations are met during the bankruptcy process. This type of order is typically issued when a debtor files for bankruptcy and is unable to meet their financial obligations. It allows the trustee to collect regular payments directly from the debtor's employer, who is then responsible for remitting the deducted amount to the trustee. The purpose of this order is to secure consistent payments towards the debtor's outstanding debts and provide assurance to creditors that their claims are being addressed. There are several variations of the Order Requiring Debtor's Employer to Remit Deductions from a Debtor's Income to Trustee, each designed to suit different bankruptcy scenarios: 1. Wage Garnishment Order: This order directs the debtor's employer to withhold a specific portion of the debtor's wages and remit it to the trustee. The withheld amount is determined based on the debtor's income, allowable expenses, and the nature of the bankruptcy proceedings. 2. Automatic Payroll Deduction Order: In this type of order, the debtor's employer is required to automatically deduct a predetermined amount from the debtor's paycheck and send it directly to the trustee. This ensures a regular flow of payments towards the debtor's outstanding debts. 3. Bank Account Levy Order: Sometimes, instead of directly deducting from the debtor's income, the trustee may opt to instruct the debtor's bank to freeze a specific amount in the debtor's account(s) and transfer it to the trustee. This form of order is used when the debtor's main source of income is not from traditional employment but rather from other sources like investments or self-employment. The type of order issued will depend on the specific circumstances of the debtor and the bankruptcy case at hand. These orders aim to facilitate the fair and efficient collection of funds for the benefit of creditors and the successful resolution of the bankruptcy proceedings.
