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 keep their home. This happens as long as they pay off their mortgage as part of the payment plan. You will be given 3 to 5 years to resolve all debts issues as you use all the disposable income for reducing the debts. An applicant is allowed to eliminate all dents that are unsecured as they cater for mortgage payments they might have missed.
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.
For one to be eligible for chapter 13, there are restrictions on the value of unsecured debt that they should have. These include card bills and personal loans. The same applies to secured loans like car loans or mortgages. When one files for it, there will be a stop to current foreclosure proceedings as well as payment to other debts that are owed. This is done to buy time as the 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 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 or sole proprietor-ships cannot file for chapter 13. Also, commodity brokers and stock brokers are not allowed to file for it. Individuals that file will be required to show their sources of income, which will be submitted to the courts. It is also a requirement that they are current in their tax filings.
There are a number of options that one can consider before filing for chapter 13. A common one is debt consolidation. It is where a person is allowed to make single monthly payments to be used for repayment of debts. The other option is to go for debt management.
Among the very attractive features of chapter 13 is that the person will keep their home. This happens as long as they pay off their mortgage as part of the payment plan. You will be given 3 to 5 years to resolve all debts issues as you use all the disposable income for reducing the debts. An applicant is allowed to eliminate all dents that are unsecured as they cater for mortgage payments they might have missed.
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.
For one to be eligible for chapter 13, there are restrictions on the value of unsecured debt that they should have. These include card bills and personal loans. The same applies to secured loans like car loans or mortgages. When one files for it, there will be a stop to current foreclosure proceedings as well as payment to other debts that are owed. This is done to buy time as the 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 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 or sole proprietor-ships cannot file for chapter 13. Also, commodity brokers and stock brokers are not allowed to file for it. Individuals that file will be required to show their sources of income, which will be submitted to the courts. It is also a requirement that they are current in their tax filings.
There are a number of options that one can consider before filing for chapter 13. A common one is debt consolidation. It is where a person is allowed to make single monthly payments to be used for repayment of debts. The other option is to go for debt management.
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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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