There are a number of people that think when they file for bankruptcy, it will be a final stop on their path to financial ruin. They have the notion that when debts pile up, it will be the best way out. Chapter 13 offers perhaps among the closest option to a soft landing. It allows a person with enough income to repay most or all their debts. It comes in handy for people whose main problem is dealing with the immediate payment demands of creditors. In consideration of filing for chapter 13 Monterey residents need to know what the process will involve.
One of the most attractive features of this option is the ability to keep your home. This is as long as you will be paying off the mortgage under the payment plan. The person is usually given some 3 to 5 years for them to resolve their debts as they apply all disposable income to reduction of the debts. Applicants will be allowed to eliminate all unsecured debts as they 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 qualify for chapter 13, there will be some restrictions on value of unsecured debts you can have. They include card bills or personal loans. The same also applies to such secured loans as mortgages or car loans. When you file for chapter 13, there is a halt to current foreclosure proceedings and payment of other owed debts. This is so that one buys time as the court considers their plan.
Petitioners under chapter 13 are required to stipulate that they have never had a bankruptcy petition dismissed in the 180 days prior to filing because they were unwilling to appear in court. There is also need for credit counseling from an agency that is approved. After one does the filing, they are required to come up with a plan of repayment. Creditors are allowed to raise any objections to the plan.
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.
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.
One of the most attractive features of this option is the ability to keep your home. This is as long as you will be paying off the mortgage under the payment plan. The person is usually given some 3 to 5 years for them to resolve their debts as they apply all disposable income to reduction of the debts. Applicants will be allowed to eliminate all unsecured debts as they 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 qualify for chapter 13, there will be some restrictions on value of unsecured debts you can have. They include card bills or personal loans. The same also applies to such secured loans as mortgages or car loans. When you file for chapter 13, there is a halt to current foreclosure proceedings and payment of other owed debts. This is so that one buys time as the court considers their plan.
Petitioners under chapter 13 are required to stipulate that they have never had a bankruptcy petition dismissed in the 180 days prior to filing because they were unwilling to appear in court. There is also need for credit counseling from an agency that is approved. After one does the filing, they are required to come up with a plan of repayment. Creditors are allowed to raise any objections to the plan.
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.
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.
