Consumers have a variety of options when it comes to dealing with their debt. One of the options at their disposal is declaring bankruptcy. There are many types of bankruptcy, but chapters 7 and 13 are the most popular with individual debtors. Before declaring bankruptcy under any of these chapters, consumers are advised to familiarize themselves with the benefits and repercussions of becoming bankrupt. Read on to learn more about Chapter 13 Monterey.
This debt settlement option involves restructuring of outstanding debts. There is no liquidation of property. Instead, debts are consolidated and a convenient payment plan used to offset the debt over a period of several years. After the bankruptcy period, the payments stop and all unpaid debts are written off.
While this form of bankruptcy may allow debtors to retain their property, there are serious consequences for defaulting on the repayment plan. For instance, the trustee will automatically initiate asset liquidation to offset the debts of the applicant. This basically means that it is in the best interests of the consumer to make timely payments without defaulting.
During debt restructuring, the debtor is expected to come up with a repayment plan based on their monthly income. The monthly payments they propose must be reasonable and sustainable. The installments are not based on the total debts of the consumer, so this plan will work in favor of the consumer. Once the plan has been formulated, it must be presented to the committee of creditors.
It is important to note that some people do not qualify for this option. For instance, if you have a number of valuable assets and a low monthly income, liquidation may be seen as a better option. This is because chapter 13 is only available to individual consumers who have a considerable monthly income and few valuable assets.
The repayment plan the debtor comes up with must be tested by creditors and defended by debtors, after which they will take a vote on the plan. Votes are usually based on the percentage of debt each creditor owns. However, the plan can still be approved by the court even if creditors have rejected it.
After being declared bankrupt, debtors get legal protection as provided in this legal provision. This means creditors will stop making any form of communication. In fact, the relationship between the creditors and the debtor will end there, and everything must be handled through the trustee. For instance, the monthly payments made by the bankrupt consumer will go to the trustee, who will be in charge of disbursing the funds to creditors.
When compared to other legal debt settlement options, this legal provision has a number of benefits. For one, debtors do not lose their property. Secondly, it helps debtors to have a huge chunk of their outstanding debts written off. Thirdly, it makes it possible for consumers to continue living their life normally and at the same time get rid of their bad debts. Lastly, it is the best option for creditors to recover most of their debts.
This debt settlement option involves restructuring of outstanding debts. There is no liquidation of property. Instead, debts are consolidated and a convenient payment plan used to offset the debt over a period of several years. After the bankruptcy period, the payments stop and all unpaid debts are written off.
While this form of bankruptcy may allow debtors to retain their property, there are serious consequences for defaulting on the repayment plan. For instance, the trustee will automatically initiate asset liquidation to offset the debts of the applicant. This basically means that it is in the best interests of the consumer to make timely payments without defaulting.
During debt restructuring, the debtor is expected to come up with a repayment plan based on their monthly income. The monthly payments they propose must be reasonable and sustainable. The installments are not based on the total debts of the consumer, so this plan will work in favor of the consumer. Once the plan has been formulated, it must be presented to the committee of creditors.
It is important to note that some people do not qualify for this option. For instance, if you have a number of valuable assets and a low monthly income, liquidation may be seen as a better option. This is because chapter 13 is only available to individual consumers who have a considerable monthly income and few valuable assets.
The repayment plan the debtor comes up with must be tested by creditors and defended by debtors, after which they will take a vote on the plan. Votes are usually based on the percentage of debt each creditor owns. However, the plan can still be approved by the court even if creditors have rejected it.
After being declared bankrupt, debtors get legal protection as provided in this legal provision. This means creditors will stop making any form of communication. In fact, the relationship between the creditors and the debtor will end there, and everything must be handled through the trustee. For instance, the monthly payments made by the bankrupt consumer will go to the trustee, who will be in charge of disbursing the funds to creditors.
When compared to other legal debt settlement options, this legal provision has a number of benefits. For one, debtors do not lose their property. Secondly, it helps debtors to have a huge chunk of their outstanding debts written off. Thirdly, it makes it possible for consumers to continue living their life normally and at the same time get rid of their bad debts. Lastly, it is the best option for creditors to recover most of their debts.
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When you are looking for the facts about a Chapter 13 Monterey residents are invited to visit are web pages online today. Additional details are available at http://centralcoastbankruptcy.com now.
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