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.
The "Wayne Michigan Order Requiring Debtor's Employer to Remit Deductions from a Debtor's Income to Trustee" is a legal procedure used in Wayne County, Michigan, to ensure that a debtor's income is properly distributed to the trustee appointed for their bankruptcy case. This order imposes an obligation on the debtor's employer to deduct a certain amount from their income and remit it to the trustee regularly. Such orders are issued by the bankruptcy court and play a crucial role in the administration of bankruptcy cases. Keywords: Wayne Michigan, Order Requiring Debtor's Employer, Remit Deductions, Debtor's Income, Trustee, bankruptcy case, legal procedure, Wayne County, Michigan, obligations, deduct, remit, bankruptcy court, administration. Types of Wayne Michigan Orders Requiring Debtor's Employer to Remit Deductions from a Debtor's Income to Trustee: 1. Chapter 7 Order: This type of order is specific to Chapter 7 bankruptcy cases, which involve the liquidation of a debtor's non-exempt assets to repay creditors. The order ensures that the debtor's employer deducts a portion of their income to be distributed to the Chapter 7 trustee for the benefit of creditors. 2. Chapter 13 Order: Chapter 13 bankruptcy cases involve a debt repayment plan, allowing the debtor to retain their assets while repaying creditors over a specific period. The Wayne Michigan order in Chapter 13 cases mandates the debtor's employer to withhold agreed-upon deductions from the debtor's income, which are then remitted to the Chapter 13 trustee for distribution among creditors. 3. Wage Garnishment Order: Sometimes referred to as an income withholding order, this specific type of order may be used when a debtor fails to make voluntary payments as per a bankruptcy court's plan. It directs the debtor's employer to deduct a specific amount from the debtor's wages each pay period and send it directly to the trustee for distribution. 4. Priority Payment Order: In cases where certain debts classified as "priority," such as taxes and child support, need to be paid in full, an order requiring the debtor's employer to remit a specific portion of the debtor's income directly to the trustee is issued. This ensures that priority claims receive the necessary payment on time. 5. Amended Order: In certain scenarios, modifications to the initial order may be required, such as changes to the deductible amount or adjustments to accommodate a revised repayment plan. An amended order may be issued to reflect the updated conditions and ensure relevant deductions are made accurately. Keywords: Chapter 7, Chapter 13, Wage Garnishment, Priority Payment, Amended Order, bankruptcy cases, liquidation, debt repayment plan, withhold, income, deductions, assets, creditors, trustee, Wayne Michigan, Wayne County, modification.The "Wayne Michigan Order Requiring Debtor's Employer to Remit Deductions from a Debtor's Income to Trustee" is a legal procedure used in Wayne County, Michigan, to ensure that a debtor's income is properly distributed to the trustee appointed for their bankruptcy case. This order imposes an obligation on the debtor's employer to deduct a certain amount from their income and remit it to the trustee regularly. Such orders are issued by the bankruptcy court and play a crucial role in the administration of bankruptcy cases. Keywords: Wayne Michigan, Order Requiring Debtor's Employer, Remit Deductions, Debtor's Income, Trustee, bankruptcy case, legal procedure, Wayne County, Michigan, obligations, deduct, remit, bankruptcy court, administration. Types of Wayne Michigan Orders Requiring Debtor's Employer to Remit Deductions from a Debtor's Income to Trustee: 1. Chapter 7 Order: This type of order is specific to Chapter 7 bankruptcy cases, which involve the liquidation of a debtor's non-exempt assets to repay creditors. The order ensures that the debtor's employer deducts a portion of their income to be distributed to the Chapter 7 trustee for the benefit of creditors. 2. Chapter 13 Order: Chapter 13 bankruptcy cases involve a debt repayment plan, allowing the debtor to retain their assets while repaying creditors over a specific period. The Wayne Michigan order in Chapter 13 cases mandates the debtor's employer to withhold agreed-upon deductions from the debtor's income, which are then remitted to the Chapter 13 trustee for distribution among creditors. 3. Wage Garnishment Order: Sometimes referred to as an income withholding order, this specific type of order may be used when a debtor fails to make voluntary payments as per a bankruptcy court's plan. It directs the debtor's employer to deduct a specific amount from the debtor's wages each pay period and send it directly to the trustee for distribution. 4. Priority Payment Order: In cases where certain debts classified as "priority," such as taxes and child support, need to be paid in full, an order requiring the debtor's employer to remit a specific portion of the debtor's income directly to the trustee is issued. This ensures that priority claims receive the necessary payment on time. 5. Amended Order: In certain scenarios, modifications to the initial order may be required, such as changes to the deductible amount or adjustments to accommodate a revised repayment plan. An amended order may be issued to reflect the updated conditions and ensure relevant deductions are made accurately. Keywords: Chapter 7, Chapter 13, Wage Garnishment, Priority Payment, Amended Order, bankruptcy cases, liquidation, debt repayment plan, withhold, income, deductions, assets, creditors, trustee, Wayne Michigan, Wayne County, modification.
