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There are people with the notion that filing for bankruptcy is the last stop on the path to financial ruin. They believe it is the only option they have whenever debts have piled up. The closest option to a soft landing is chapter 13. It makes it possible for those involved and who have adequate income to repay all or part of what is owed. The option works best for people whose biggest headache is dealing with creditor demands to be paid immediately. In considering going for chapter 13 Monterey residents should be versed with what it involves.
Among the very attractive features of chapter 13 is that the person will be able to keep the home. This happens on condition that the mortgage will be repaid as part of the repayment plan. You will be given 3 to 5 years in order to resolve debts because the disposable income is applied towards reducing debts. An applicant will be allowed to eliminate all their unsecured debts as they try to catch up on any missed mortgage payments.
Chapter 13 works the same as chapter 11 that applies to businesses. In both instances, a petitioner will submit their reorganized plan which safeguards all their assets against foreclosure or repossession. They are different from chapter 7 that tends to be very extreme in that it liquidates all the assets except the ones that were specifically protected.
In order to qualify for chapter 13, there will be some restrictions on value of unsecured debts you can have. They include card bills or personal loans. The same also applies to such secured loans as mortgages or car loans. When you file for chapter 13, there is a halt to current foreclosure proceedings and payment of other owed debts. This is so that one buys time as the court considers their 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 a court approves the plan of repayment, it will be up to a debtor to make the budget plan to work. If one fails to make agreed payments, the matter might be taken back to court for review. This might include selling property that belongs to the debtor in order to settle the debts. All such details are best understood after meeting 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 be able to keep the home. This happens on condition that the mortgage will be repaid as part of the repayment plan. You will be given 3 to 5 years in order to resolve debts because the disposable income is applied towards reducing debts. An applicant will be allowed to eliminate all their unsecured debts as they try to catch up on any missed mortgage payments.
Chapter 13 works the same as chapter 11 that applies to businesses. In both instances, a petitioner will submit their reorganized plan which safeguards all their assets against foreclosure or repossession. They are different from chapter 7 that tends to be very extreme in that it liquidates all the assets except the ones that were specifically protected.
In order to qualify for chapter 13, there will be some restrictions on value of unsecured debts you can have. They include card bills or personal loans. The same also applies to such secured loans as mortgages or car loans. When you file for chapter 13, there is a halt to current foreclosure proceedings and payment of other owed debts. This is so that one buys time as the court considers their 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 a court approves the plan of repayment, it will be up to a debtor to make the budget plan to work. If one fails to make agreed payments, the matter might be taken back to court for review. This might include selling property that belongs to the debtor in order to settle the debts. All such details are best understood after meeting 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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