Bankruptcy essentially refers to the process where businesses, as well as individuals are allowed to repay part or all of their debts but with protection guaranteed by the federal court on bankruptcy. Bankruptcies may nevertheless be classified in two categories, liquidation and reorganization bankruptcies. When bankruptcy is deemed a right option for a person, they will need to choose the category that most suits them. With Chapter 13 Monterey, a person will retain their assets even under a declaration of being bankrupt.
Chapter 13 is the reorganization or wage earner bankruptcy while chapter seven is the liquidation bankruptcy. However, not everyone can file for reorganization. This form of bankruptcy cannot be applied for by corporations or sole proprietorships. This is because in this form of bankruptcy you need to be in a position to make payments. There is also the limit on how much debt you need to have so as to file for this bankruptcy.
Qualifications for chapter 13 generally requires that certain conditions are met. One such requirement is that a person should not be a business unit. This option is solely for individuals and joint applicants, for instance, a person and his or her spouse. For instance, businesses like corporations or limited companies remain ineligible for the reorganization bankruptcy. Even though business owners may file for such a bankruptcy under the name of their business, debtors may apply for repayments under their names to recover such debts owed.
The other requirement needs that a person should not be under the burden of a previous bankruptcy. If a debtor cleared your debt that was previously owed in last two years through a reorganization or for liquidation in the last 4 years, such debtors remain ineligible to get reorganization bankruptcies until the specified time elapses.
Again, you cannot file for reorganization if your previous bankruptcy petition was dismissed within the last 180 days due to some reasons. The first reason is if the debtor willfully did not follow the court orders or did not appear before the court. The other reason is if the debtor asked for the dismissal after the creditor asked the court to cancel an automatic stay.
One other need is that a debtor needs to have some steady earning that will sufficiently repay their debts after deducting any allowable expenses. Usually, debtors have to attach the earnings of their husbands or wives suppose they are employed and this applies even when the bankruptcy was under a joint application. Chapter 13 qualifications additionally require debtors to be adequately earning to permit any mandatory repayment to their creditors if the debts are unsecured.
There are a number of benefits of filing for such bankruptcies. First, it offers an opportunity to saving your property from foreclosure. Filing for these bankruptcies will stop any scheduled foreclosures hence a person may pay their owed overdue mortgages over time. Nonetheless, debtors have to make pay the mortgages on a timely basis under this kind of bankruptcy.
Another benefit is that the debtor can be able to reschedule secured debts and extend them for the entire life of reorganization plan. However, mortgage for the primary residence may not be rescheduled. Rescheduling of the debts may lower the payments.
Chapter 13 is the reorganization or wage earner bankruptcy while chapter seven is the liquidation bankruptcy. However, not everyone can file for reorganization. This form of bankruptcy cannot be applied for by corporations or sole proprietorships. This is because in this form of bankruptcy you need to be in a position to make payments. There is also the limit on how much debt you need to have so as to file for this bankruptcy.
Qualifications for chapter 13 generally requires that certain conditions are met. One such requirement is that a person should not be a business unit. This option is solely for individuals and joint applicants, for instance, a person and his or her spouse. For instance, businesses like corporations or limited companies remain ineligible for the reorganization bankruptcy. Even though business owners may file for such a bankruptcy under the name of their business, debtors may apply for repayments under their names to recover such debts owed.
The other requirement needs that a person should not be under the burden of a previous bankruptcy. If a debtor cleared your debt that was previously owed in last two years through a reorganization or for liquidation in the last 4 years, such debtors remain ineligible to get reorganization bankruptcies until the specified time elapses.
Again, you cannot file for reorganization if your previous bankruptcy petition was dismissed within the last 180 days due to some reasons. The first reason is if the debtor willfully did not follow the court orders or did not appear before the court. The other reason is if the debtor asked for the dismissal after the creditor asked the court to cancel an automatic stay.
One other need is that a debtor needs to have some steady earning that will sufficiently repay their debts after deducting any allowable expenses. Usually, debtors have to attach the earnings of their husbands or wives suppose they are employed and this applies even when the bankruptcy was under a joint application. Chapter 13 qualifications additionally require debtors to be adequately earning to permit any mandatory repayment to their creditors if the debts are unsecured.
There are a number of benefits of filing for such bankruptcies. First, it offers an opportunity to saving your property from foreclosure. Filing for these bankruptcies will stop any scheduled foreclosures hence a person may pay their owed overdue mortgages over time. Nonetheless, debtors have to make pay the mortgages on a timely basis under this kind of bankruptcy.
Another benefit is that the debtor can be able to reschedule secured debts and extend them for the entire life of reorganization plan. However, mortgage for the primary residence may not be rescheduled. Rescheduling of the debts may lower the payments.
About the Author:
When you are looking for the facts about a Chapter 13 Monterey locals can come to our web pages today. More details are available at http://centralcoastbankruptcy.com/chapter-13.html now.
No comments:
Post a Comment