There are people with the notion that filing for bankruptcy is the last stop on the path to financial ruin. They believe it is the only option they have whenever debts have piled up. The closest option to a soft landing is chapter 13. It makes it possible for those involved and who have adequate income to repay all or part of what is owed. The option works best for people whose biggest headache is dealing with creditor demands to be paid immediately. In considering going for chapter 13 Monterey residents should be versed with what it involves.
Among the very attractive features of chapter 13 is that the person will be able to keep the home. This happens on condition that the mortgage will be repaid as part of the repayment plan. You will be given 3 to 5 years in order to resolve debts because the disposable income is applied towards reducing debts. An applicant will be allowed to eliminate all their unsecured debts as they try to catch up on any missed mortgage payments.
Chapter 13 works the same as chapter 11 that applies to businesses. In both instances, a petitioner will submit their reorganized plan which safeguards all their assets against foreclosure or repossession. They are different from chapter 7 that tends to be very extreme in that it liquidates all the assets except the ones that were specifically protected.
For one to be eligible for chapter 13, there are restrictions on the value of unsecured debt that they should have. These include card bills and personal loans. The same applies to secured loans like car loans or mortgages. When one files for it, there will be a stop to current foreclosure proceedings as well as payment to other debts that are owed. This is done to buy time as the court considers the plan.
Petitioners under this arrangement are supposed to confirm they have not had bankruptcy petitions dismissed in the last 6 months before that filing because they failed or were unwilling to appear before court. The debtor should also go for credit counseling from an agency that is reputable. After the filing is done, there should be devising of a payment plan. A creditor can object the repayment plan that a debtor comes up with.
After a repayment plan is approved, it is up to a debtor to ensure the budget plan works. If you fail to make the agreed payments, the issue will be taken back to court for further review. This includes selling property of the debtor so as to settle outstanding debts. It is important to hire an attorney to advice on the best way to go about the process.
Sole proprietor-ships and businesses are not to file for chapter 13. This also applies to stock brokers and commodity brokers. When one files for this option, they are supposed to show sources of their income. Which is supposed to be presented in court. They should also be current in tax filings.
There are some options before one considers filing for chapter 13 bankruptcy. Debt consolidation is one such option. This is whereby one is allowed to make a single monthly payment that is used to repay what one owes. Debt management is also an option for some people.
Among the very attractive features of chapter 13 is that the person will be able to keep the home. This happens on condition that the mortgage will be repaid as part of the repayment plan. You will be given 3 to 5 years in order to resolve debts because the disposable income is applied towards reducing debts. An applicant will be allowed to eliminate all their unsecured debts as they try to catch up on any missed mortgage payments.
Chapter 13 works the same as chapter 11 that applies to businesses. In both instances, a petitioner will submit their reorganized plan which safeguards all their assets against foreclosure or repossession. They are different from chapter 7 that tends to be very extreme in that it liquidates all the assets except the ones that were specifically protected.
For one to be eligible for chapter 13, there are restrictions on the value of unsecured debt that they should have. These include card bills and personal loans. The same applies to secured loans like car loans or mortgages. When one files for it, there will be a stop to current foreclosure proceedings as well as payment to other debts that are owed. This is done to buy time as the court considers the plan.
Petitioners under this arrangement are supposed to confirm they have not had bankruptcy petitions dismissed in the last 6 months before that filing because they failed or were unwilling to appear before court. The debtor should also go for credit counseling from an agency that is reputable. After the filing is done, there should be devising of a payment plan. A creditor can object the repayment plan that a debtor comes up with.
After a repayment plan is approved, it is up to a debtor to ensure the budget plan works. If you fail to make the agreed payments, the issue will be taken back to court for further review. This includes selling property of the debtor so as to settle outstanding debts. It is important to hire an attorney to advice on the best way to go about the process.
Sole proprietor-ships and businesses are not to file for chapter 13. This also applies to stock brokers and commodity brokers. When one files for this option, they are supposed to show sources of their income. Which is supposed to be presented in court. They should also be current in tax filings.
There are some options before one considers filing for chapter 13 bankruptcy. Debt consolidation is one such option. This is whereby one is allowed to make a single monthly payment that is used to repay what one owes. Debt management is also an option for some people.
About the Author:
Find details about the benefits of consulting an experienced Chapter 13 Monterey lawyer and more info about a reliable attorney at http://www.centralcoastbankruptcy.com today.
No comments:
Post a Comment