Bankruptcy essentially refers to the process where businesses, as well as individuals are allowed to repay part or all of their debts but with protection guaranteed by the federal court on bankruptcy. Bankruptcies may nevertheless be classified in two categories, liquidation and reorganization bankruptcies. When bankruptcy is deemed a right option for a person, they will need to choose the category that most suits them. With Chapter 13 Monterey, a person will retain their assets even under a declaration of being bankrupt.
Chapter 13 refers to a wage earner or reorganization bankruptcy, even as chapter seven refers to liquidation bankruptcy. Nevertheless, not every person will file for reorganization. This category of bankruptcy may never be applied for by sole proprietorships and corporations. This is for the reason that under it, the person declared bankrupt should be able to make payments. There also exists a limit on the much debt a person will be required to owe in order to apply for a reorganization bankruptcy.
To qualify for chapter 13 you need to meet some criteria. One of the requirement is that you must not be a business entity. This option is for individuals or those filing jointly like a husband and a wife. For example, businesses such as limited companies and corporations are not eligible for reorganization bankruptcy. Although a business owner cannot file for bankruptcy in the name of his or her business, the debtors can apply in their name for those debts they are liable for.
The other provision is that the person applying for the bankruptcy is not under obligation of some previous bankruptcy. If debtors had cleared your previously owed obligations over the last 2 years under a reorganizational bankruptcy or under a liquidation over the previous 4 years, the debtors will be barred from seeking reorganizational bankruptcies up to the end of the specified bankruptcy duration.
Again, you cannot file for reorganization if your previous bankruptcy petition was dismissed within the last 180 days due to some reasons. The first reason is if the debtor willfully did not follow the court orders or did not appear before the court. The other reason is if the debtor asked for the dismissal after the creditor asked the court to cancel an automatic stay.
One other requirement is that debtors need to have steady and sufficient earnings that will service their debt after allowable expenses are deducted. Usually, debtors will attach earning of their spouses if they are employed which will apply even if the application was not filed jointly. Qualifications for chapter 13 also needs debtors to have adequate income to allow for the mandatory repayments to any unsecured creditor.
There are a number of benefits of filing for such bankruptcies. First, it offers an opportunity to saving your property from foreclosure. Filing for these bankruptcies will stop any scheduled foreclosures hence a person may pay their owed overdue mortgages over time. Nonetheless, debtors have to make pay the mortgages on a timely basis under this kind of bankruptcy.
The other gain pertains to debtors being able to re-plan secured debts and spread over the reorganization period. Nonetheless, mortgages for primary owners may never be re-planned. Rescheduling of debts can as well lower the repayment amounts.
Chapter 13 refers to a wage earner or reorganization bankruptcy, even as chapter seven refers to liquidation bankruptcy. Nevertheless, not every person will file for reorganization. This category of bankruptcy may never be applied for by sole proprietorships and corporations. This is for the reason that under it, the person declared bankrupt should be able to make payments. There also exists a limit on the much debt a person will be required to owe in order to apply for a reorganization bankruptcy.
To qualify for chapter 13 you need to meet some criteria. One of the requirement is that you must not be a business entity. This option is for individuals or those filing jointly like a husband and a wife. For example, businesses such as limited companies and corporations are not eligible for reorganization bankruptcy. Although a business owner cannot file for bankruptcy in the name of his or her business, the debtors can apply in their name for those debts they are liable for.
The other provision is that the person applying for the bankruptcy is not under obligation of some previous bankruptcy. If debtors had cleared your previously owed obligations over the last 2 years under a reorganizational bankruptcy or under a liquidation over the previous 4 years, the debtors will be barred from seeking reorganizational bankruptcies up to the end of the specified bankruptcy duration.
Again, you cannot file for reorganization if your previous bankruptcy petition was dismissed within the last 180 days due to some reasons. The first reason is if the debtor willfully did not follow the court orders or did not appear before the court. The other reason is if the debtor asked for the dismissal after the creditor asked the court to cancel an automatic stay.
One other requirement is that debtors need to have steady and sufficient earnings that will service their debt after allowable expenses are deducted. Usually, debtors will attach earning of their spouses if they are employed which will apply even if the application was not filed jointly. Qualifications for chapter 13 also needs debtors to have adequate income to allow for the mandatory repayments to any unsecured creditor.
There are a number of benefits of filing for such bankruptcies. First, it offers an opportunity to saving your property from foreclosure. Filing for these bankruptcies will stop any scheduled foreclosures hence a person may pay their owed overdue mortgages over time. Nonetheless, debtors have to make pay the mortgages on a timely basis under this kind of bankruptcy.
The other gain pertains to debtors being able to re-plan secured debts and spread over the reorganization period. Nonetheless, mortgages for primary owners may never be re-planned. Rescheduling of debts can as well lower the repayment amounts.
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