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Tuesday 6 February 2018

Details On Chapter 13 Salt Lake City Utah

By Jose Thomas


When the word comes to the mind of most people, what they think about is chapter 7. This is a plan that eliminates your obligation to pay off most debts. However, there is the option of chapter 13 repayments which are ideal for people who for instance are late with car or house payments. The main aim is to save essential assets and to get a discharge. In considering chapter 13 Salt Lake City Utah debtors need to be conversant with what it involves.

Bankruptcy cases are filed and handled at special courts. To start off a case, there is filing of documents that list all their incomes, debts and assets. These are altogether known as schedules, petitions and statements of financial affairs. All information which is provided must be complete and accurate and to the best knowledge of the individual. All provided information gets signed under penalty of perjury.

The repayment plan will last between 3 to 5 years. The maximum they should last is 5 years. As the case begins, the debtor is supposed to come up with their proposition of the repayment plan. There is classification of the debts according to their security, that is, those that are secured and those that are not. Unsecured debts have no collateral. There is then assignment of priority to each debt.

Debts for child support or taxes have higher priority compared to credit card debts. The monthly repayment under this plan will depend on various factors. These include how much one owes in mortgage arrears, the amount of priority debt, the income and reasonable expenses. In most cases, one is not required to repay all that is owed. In case the income is enough to pay back priority debts but not sufficient to pay others, one will not be required to pay non-priority ones.

When a case is filed, it gets assigned to a judge as well as a trustee. It is possible that you may go through the entire process without appearing in court at any time. It is the appointed trustee that oversees the case. The repayment plan is shared with the trustee who then comes with a way to ensure creditors are paid accordingly.

A month after filing of the case, there should be a meeting between the trustee, debtor and attorney for the debtor. This is known as a meeting of creditors. Weirdly, you never find creditors at the meeting. It gives the trustee an opportunity to ask any questions they may have as regards the financial situation of the debtor. The trustee also examines debtor repayment plan to determine its feasibility.

Five years can be a long time and there are many things that can happen. This means there can be upset of payments. The problems that may arise are unemployment, divorce and medical issues. If you are no longer in a position to make payments, you can make changes. This will be done before it gets late.

It still is possible to get credit as the case continues. One will have to get a new credit card but through court intervention. It should be a credit card for necessary items.




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