There are many people that think that filing for bankruptcy will be the final stop on their path to financial ruin. That it is the only option when debts have piled up. Chapter 13 offers the closest option to having a soft landing. It will allow people that have enough income to repay either all or part of what they owe. It is an option for people whose main problem is dealing with demands of creditors for immediate payment. When considering filing for chapter 13 Monterey residents need to know what is involved.
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 in the same way as chapter 11 which is applicable to businesses. In both cases, petitioners are to submit reorganized plans that safeguard their assets against repossession or foreclosure. The two differ from chapter 7 that is more extreme because it liquidates all the assets except those that were specifically protected.
In order to be eligible for chapter 13, there are some restrictions on value of unsecured debt that one can have. They include personal debts and card bills. Similarly, there will be restrictions on secured debts such as mortgages and car loans. When you file for it, there will be stop to all current proceedings and payments to other owed debts. The reason for doing that is to buy time as a 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 court approves the plan of repayment, it will be up to a debtor to make the budget plan to work. If one fails to make agreed payments, the matter might be taken back to court for review. This might include selling property that belongs to the debtor in order to settle the debts. All such details are best understood after meeting an attorney.
Businesses and sole proprietorships are not allowed to file for chapter 13. The same will apply to stock brokers and commodity brokers. When one does the filing in this option, they will be under the obligation to indicate their income sources. The information is to be submitted before court. The tax filings should also be current.
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 in the same way as chapter 11 which is applicable to businesses. In both cases, petitioners are to submit reorganized plans that safeguard their assets against repossession or foreclosure. The two differ from chapter 7 that is more extreme because it liquidates all the assets except those that were specifically protected.
In order to be eligible for chapter 13, there are some restrictions on value of unsecured debt that one can have. They include personal debts and card bills. Similarly, there will be restrictions on secured debts such as mortgages and car loans. When you file for it, there will be stop to all current proceedings and payments to other owed debts. The reason for doing that is to buy time as a 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 court approves the plan of repayment, it will be up to a debtor to make the budget plan to work. If one fails to make agreed payments, the matter might be taken back to court for review. This might include selling property that belongs to the debtor in order to settle the debts. All such details are best understood after meeting an attorney.
Businesses and sole proprietorships are not allowed to file for chapter 13. The same will apply to stock brokers and commodity brokers. When one does the filing in this option, they will be under the obligation to indicate their income sources. The information is to be submitted before court. The tax filings should also be current.
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.
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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.
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