Consumers have a variety of options when it comes to dealing with their debt. One of the options at their disposal is declaring bankruptcy. There are many types of bankruptcy, but chapters 7 and 13 are the most popular with individual debtors. Before declaring bankruptcy under any of these chapters, consumers are advised to familiarize themselves with the benefits and repercussions of becoming bankrupt. Read on to learn more about Chapter 13 Monterey.
This debt settlement option involves restructuring of outstanding debts. There is no liquidation of property. Instead, debts are consolidated and a convenient payment plan used to offset the debt over a period of several years. After the bankruptcy period, the payments stop and all unpaid debts are written off.
This financial arrangement gives the consumer a chance to retain all their assets. However, any default will lead to liquidation. This means the trustee will move to court to seek orders to liquidate the assets of the borrower. To prevent this from happening, borrowers need to make their payments according to the approved plan without defaulting.
During debt restructuring, the debtor is expected to come up with a repayment plan based on their monthly income. The monthly payments they propose must be reasonable and sustainable. The installments are not based on the total debts of the consumer, so this plan will work in favor of the consumer. Once the plan has been formulated, it must be presented to the committee of creditors.
To qualify for this type of bankruptcy, a person must have a steady job with a decent income and few valuable assets. The argument is that making monthly payments will help creditors recover more money than they would if the assets of the debtor were liquidated. The trustee is the one who will ensure the debtor qualifies for this option.
Once the repayment plan has been presented, creditors have the right to question the debtor on issues touching on the plan. Afterwards, the creditors will vote on whether to approve the plan or not. However, it is the judge who has the final say, so the plan can still be approved even if creditors reject it.
Once the debtor has been declared bankrupt under this legal provision, creditors will be required not to communicate with the debtor in any way. This means no phone calls, emails, faxes or house visits by creditors or their collection agents. Furthermore, the monthly payments will be forwarded to the trustee, who will disburse the payments to creditors according to their fraction of debt and order of priority.
While there may be other debt settlement options out there, bankruptcy is without a doubt the most beneficial to consumers. The only shortcoming is that the credit rating of the consumer will suffer a big blow. However, that is acceptable considering the fact that bankruptcy will resolve all bad debts and give the consumer a chance to start life afresh. It also helps creditors to deal with bad debts.
This debt settlement option involves restructuring of outstanding debts. There is no liquidation of property. Instead, debts are consolidated and a convenient payment plan used to offset the debt over a period of several years. After the bankruptcy period, the payments stop and all unpaid debts are written off.
This financial arrangement gives the consumer a chance to retain all their assets. However, any default will lead to liquidation. This means the trustee will move to court to seek orders to liquidate the assets of the borrower. To prevent this from happening, borrowers need to make their payments according to the approved plan without defaulting.
During debt restructuring, the debtor is expected to come up with a repayment plan based on their monthly income. The monthly payments they propose must be reasonable and sustainable. The installments are not based on the total debts of the consumer, so this plan will work in favor of the consumer. Once the plan has been formulated, it must be presented to the committee of creditors.
To qualify for this type of bankruptcy, a person must have a steady job with a decent income and few valuable assets. The argument is that making monthly payments will help creditors recover more money than they would if the assets of the debtor were liquidated. The trustee is the one who will ensure the debtor qualifies for this option.
Once the repayment plan has been presented, creditors have the right to question the debtor on issues touching on the plan. Afterwards, the creditors will vote on whether to approve the plan or not. However, it is the judge who has the final say, so the plan can still be approved even if creditors reject it.
Once the debtor has been declared bankrupt under this legal provision, creditors will be required not to communicate with the debtor in any way. This means no phone calls, emails, faxes or house visits by creditors or their collection agents. Furthermore, the monthly payments will be forwarded to the trustee, who will disburse the payments to creditors according to their fraction of debt and order of priority.
While there may be other debt settlement options out there, bankruptcy is without a doubt the most beneficial to consumers. The only shortcoming is that the credit rating of the consumer will suffer a big blow. However, that is acceptable considering the fact that bankruptcy will resolve all bad debts and give the consumer a chance to start life afresh. It also helps creditors to deal with bad debts.
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When you are looking for the facts about a Chapter 13 Monterey residents are invited to visit are web pages online today. Additional details are available at http://centralcoastbankruptcy.com now.
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