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 is very similar to chapter 11 but the latter applies to only businesses. In both cases, the petitioner is to submit a reorganized plan that safeguards all assets against repossession and foreclosure. They are very different from chapter 7 which tends to be extreme because it liquidates assets except the ones that are 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 will be required to confirm that they have never had dismissal of their bankruptcy petition in 180 days prior to the filing because they were not willing to appear in court. It will also be a requirement that one goes for credit counseling from an approved agency. After the filing is done, one is supposed to generate a plan of repayment. Creditors can object the repayment plan.
After the repayment plan is approved by the courts, the debtor is supposed to come up with some budget plan. If there is failure to make payments as agreed, the matter might have to be taken back to curt for review. It could include selling any property belonging to the debtor and the proceeds used to settle debts. The details are best handled by an attorney.
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 is very similar to chapter 11 but the latter applies to only businesses. In both cases, the petitioner is to submit a reorganized plan that safeguards all assets against repossession and foreclosure. They are very different from chapter 7 which tends to be extreme because it liquidates assets except the ones that are 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 will be required to confirm that they have never had dismissal of their bankruptcy petition in 180 days prior to the filing because they were not willing to appear in court. It will also be a requirement that one goes for credit counseling from an approved agency. After the filing is done, one is supposed to generate a plan of repayment. Creditors can object the repayment plan.
After the repayment plan is approved by the courts, the debtor is supposed to come up with some budget plan. If there is failure to make payments as agreed, the matter might have to be taken back to curt for review. It could include selling any property belonging to the debtor and the proceeds used to settle debts. The details are best handled by an attorney.
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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