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Whenever one thinks of bankruptcy, what comes to mind is the chapter 7 plans that eliminate the obligation of the individual to repay majority of their debts. The other option is chapter 13 plan which is suitable for people who might be later with house or car repayments. The majority of debtors in this plan look to save important assets in addition to getting discharge orders from the court. In consideration of chapter 13 Salt Lake City Utah debtors need to know what is involved.
All the bankruptcy cases normally are filed at special courts. In order to start chapter 13 cases, one starts by filing documents which list all their debts, income and assets. Altogether these are referred to as schedules, petition and statement of financial affairs. The information provided needs to be complete and accurate to the knowledge of those affected. The information is signed under penalty of perjury.
The plan of repayment normally lasts some three years on the lower side. They should not however exceed 5 years. When the case starts, one is required to suggest a plan for paying all creditors who are supposed to be repaid. The debts are to be classified depending on if they are secured or unsecured. Secured debts have collateral. After that, priority is assigned to every type of debt.
You will note that debts that are for child support or for taxes are more highly prioritized than for instance credit card debts. Monthly payments under chapter 13 are dependent on a number of factors. The factors include amounts one owes in mortgage arrears, their income and reasonable taxes. In many instances, it is not mandatory to pay all that you owe. If your income is adequate to pay back priority debts but it is not enough to repay others, you do not have to repay the ones that are not priority.
When a case is filed, it gets assigned to a judge as well as a trustee. It is possible that you may go through the entire process without appearing in court at any time. It is the appointed trustee that oversees the case. The repayment plan is shared with the trustee who then comes with a way to ensure creditors are paid accordingly.
One month after the case is filed, there will be a meeting between you and an attorney, as well as the trustee. This is a meeting of creditors. The funny bit is that creditors will rarely ever attend these meetings. The meeting is a chance for the trustee to clarify questions they may have about your financial situation. Trustees also get to examine the repayment plan to see whether it is feasible.
Five years is a long long time and many things can happen within that period. There may be disruption in payments. The issues that might arise include unemployment, medical problems and divorce. Should it be such that you are not in a position to make repayments, you can have the plan modified. This is best done before it is late.
It will still be possible to obtain credit during the case. Getting a new credit card will need to be through intervention of the court. The credit will have to be for something necessary if it is to be granted.
All the bankruptcy cases normally are filed at special courts. In order to start chapter 13 cases, one starts by filing documents which list all their debts, income and assets. Altogether these are referred to as schedules, petition and statement of financial affairs. The information provided needs to be complete and accurate to the knowledge of those affected. The information is signed under penalty of perjury.
The plan of repayment normally lasts some three years on the lower side. They should not however exceed 5 years. When the case starts, one is required to suggest a plan for paying all creditors who are supposed to be repaid. The debts are to be classified depending on if they are secured or unsecured. Secured debts have collateral. After that, priority is assigned to every type of debt.
You will note that debts that are for child support or for taxes are more highly prioritized than for instance credit card debts. Monthly payments under chapter 13 are dependent on a number of factors. The factors include amounts one owes in mortgage arrears, their income and reasonable taxes. In many instances, it is not mandatory to pay all that you owe. If your income is adequate to pay back priority debts but it is not enough to repay others, you do not have to repay the ones that are not priority.
When a case is filed, it gets assigned to a judge as well as a trustee. It is possible that you may go through the entire process without appearing in court at any time. It is the appointed trustee that oversees the case. The repayment plan is shared with the trustee who then comes with a way to ensure creditors are paid accordingly.
One month after the case is filed, there will be a meeting between you and an attorney, as well as the trustee. This is a meeting of creditors. The funny bit is that creditors will rarely ever attend these meetings. The meeting is a chance for the trustee to clarify questions they may have about your financial situation. Trustees also get to examine the repayment plan to see whether it is feasible.
Five years is a long long time and many things can happen within that period. There may be disruption in payments. The issues that might arise include unemployment, medical problems and divorce. Should it be such that you are not in a position to make repayments, you can have the plan modified. This is best done before it is late.
It will still be possible to obtain credit during the case. Getting a new credit card will need to be through intervention of the court. The credit will have to be for something necessary if it is to be granted.
About the Author:
You can get a summary of important things to consider when choosing a Chapter 13 Salt Lake City Utah attorney at http://www.bankruptcyutah.com/about right now.
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