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 Guam Order Requiring Debtor's Employer to Remit Deductions from a Debtor's Income to Trustee is a legal document issued by a Guam court that mandates an employer to withhold a specific amount from a debtor's income and send it directly to the trustee assigned to the case. This order helps the trustee in collecting and managing the debtor's assets and distributing them to creditors as required by law. There are two main types of Guam Orders Requiring Debtor's Employer to Remit Deductions from a Debtor's Income to Trustee: 1. Wage garnishment order: This type of order allows the trustee to collect a portion of the debtor's wages directly from their employer. The employer is required by law to withhold the specified amount from the debtor's paycheck and remit it to the trustee. Wage garnishment orders are typically used when the debtor is employed and has a steady income source. 2. Income withholding order: This order is similar to wage garnishment but is not limited to wages and can include other forms of income such as rental income, commissions, dividends, or any other income source the debtor may have. The order requires the debtor's employer or any other entity responsible for making payments to the debtor to remit a specified amount directly to the trustee. These orders are typically issued during bankruptcy proceedings or when a debtor fails to meet their financial obligations as required by a court-ordered payment plan. The purpose of these orders is to ensure that the debtor's assets are properly managed, creditors receive the amount owed to them, and the debtor complies with the terms of the court-approved repayment plan. Guam Orders Requiring Debtor's Employer to Remit Deductions from a Debtor's Income to Trustee play an essential role in facilitating the debt collection process and assisting the trustee in fulfilling their duties to protect the interests of both the debtor and the creditors involved.
