Basically, bankruptcy is a process that allows businesses or individuals to repay all or part of their debts under the protection from the federal bankruptcy court. Bankruptcies can, however, be divided into two, the reorganization and liquidation bankruptcies. If bankruptcy is the right option for you, you will have to decide the type that is most beneficial. Through Chapter 13 Monterey, you retain your assets while declaring bankruptcy.
Chapter 13 is used in reference to reorganization bankruptcies while liquidation bankruptcies are termed as chapter seven. On the other hand, not all individuals are allowed to apply for reorganizations. For instance, corporations or even proprietors may not apply. This is since under the reorganization forms of bankruptcies, the individuals declared bankrupt must be at a position of making repayments. In addition, there is always a stipulated amount of debt that an individual has to owe so that they can be able to make applications for the reorganizational bankruptcies.
Requirements for the chapter 13 usually specifies a number of provisions to be met. For instance, an applicant needs not to be an enterprising entity. This option remains exclusively for single and joint applicants. For example, businesses such as corporations and even limited companies are always considered ineligible for a reorganization bankruptcy. Even though a proprietor is able to make an application for this kind of bankruptcy with their business names, debtors are still permitted to request for repayments of their dues under the provided names.
Another requirement is that you must not be prevented by a prior bankruptcy. If the debtor discharged the debt within the past two years under reorganization or within the past four years under liquidation, such a debtor is not eligible for reorganization until the time has elapsed.
Another condition to be met is that an application done earlier for this kind of bankruptcy and dismissed within in the last period of 6 months means that you are ineligible. This especially applies if you did not comply with the court processes. The other reason could be that the applicant making such applications had their creditors apply for debt cancellations via automatic stays.
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 advantages for filing for reorganization bankruptcy. One advantage is that it gives the debtor an opportunity for saving their property or homes from foreclosure. By filing for this form of bankruptcy you can stop foreclosure proceedings and you can also cure overdue mortgage payment over time. However, the debtor must make the mortgage payments on time as they become due under the reorganization option.
The other gain is that you can re-plan and spread the repayment of secured debts. Nonetheless, this re-scheduling is limited to secondary mortgage owners and not for the primary possessors. Rescheduling of debts may additionally lessen the amount to be repaid.
Chapter 13 is used in reference to reorganization bankruptcies while liquidation bankruptcies are termed as chapter seven. On the other hand, not all individuals are allowed to apply for reorganizations. For instance, corporations or even proprietors may not apply. This is since under the reorganization forms of bankruptcies, the individuals declared bankrupt must be at a position of making repayments. In addition, there is always a stipulated amount of debt that an individual has to owe so that they can be able to make applications for the reorganizational bankruptcies.
Requirements for the chapter 13 usually specifies a number of provisions to be met. For instance, an applicant needs not to be an enterprising entity. This option remains exclusively for single and joint applicants. For example, businesses such as corporations and even limited companies are always considered ineligible for a reorganization bankruptcy. Even though a proprietor is able to make an application for this kind of bankruptcy with their business names, debtors are still permitted to request for repayments of their dues under the provided names.
Another requirement is that you must not be prevented by a prior bankruptcy. If the debtor discharged the debt within the past two years under reorganization or within the past four years under liquidation, such a debtor is not eligible for reorganization until the time has elapsed.
Another condition to be met is that an application done earlier for this kind of bankruptcy and dismissed within in the last period of 6 months means that you are ineligible. This especially applies if you did not comply with the court processes. The other reason could be that the applicant making such applications had their creditors apply for debt cancellations via automatic stays.
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 advantages for filing for reorganization bankruptcy. One advantage is that it gives the debtor an opportunity for saving their property or homes from foreclosure. By filing for this form of bankruptcy you can stop foreclosure proceedings and you can also cure overdue mortgage payment over time. However, the debtor must make the mortgage payments on time as they become due under the reorganization option.
The other gain is that you can re-plan and spread the repayment of secured debts. Nonetheless, this re-scheduling is limited to secondary mortgage owners and not for the primary possessors. Rescheduling of debts may additionally lessen the amount to be repaid.
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