Bankruptcy essentially refers to the process where businesses, as well as individuals are allowed to repay part or all of their debts but with protection guaranteed by the federal court on bankruptcy. Bankruptcies may nevertheless be classified in two categories, liquidation and reorganization bankruptcies. When bankruptcy is deemed a right option for a person, they will need to choose the category that most suits them. With Chapter 13 Monterey, a person will retain their assets even under a declaration of being bankrupt.
Chapter 13 is the reorganization or wage earner bankruptcy while chapter seven is the liquidation bankruptcy. However, not everyone can file for reorganization. This form of bankruptcy cannot be applied for by corporations or sole proprietorships. This is because in this form of bankruptcy you need to be in a position to make payments. There is also the limit on how much debt you need to have so as to file for this bankruptcy.
Qualifications for chapter 13 generally requires that certain conditions are met. One such requirement is that a person should not be a business unit. This option is solely for individuals and joint applicants, for instance, a person and his or her spouse. For instance, businesses like corporations or limited companies remain ineligible for the reorganization bankruptcy. Even though business owners may file for such a bankruptcy under the name of their business, debtors may apply for repayments under their names to recover such debts owed.
The other provision is that the person applying for the bankruptcy is not under obligation of some previous bankruptcy. If debtors had cleared your previously owed obligations over the last 2 years under a reorganizational bankruptcy or under a liquidation over the previous 4 years, the debtors will be barred from seeking reorganizational bankruptcies up to the end of the specified bankruptcy duration.
Again, you may not file for such a bankruptcy if an earlier bankruptcy request was dismissed in the last 6 months for some reasons. The first reason pertains to debtors willfully not following court procedures or did failing to appear before a court. The other reason pertains to a debtor seeking for dismissals following the requests by creditors to have a cancellation of the automatic stay.
The other requirement is for the debtor to have sufficient income for paying the debt after deducting the allowable expenses. Usually, the debtor may include income from spouse who is working even when the spouse has not jointly filed for bankruptcy, salary and wages, and income from self-employment. To qualify for chapter 13, the debtor must also have sufficient income for mandatory payments to unsecured creditors and priority.
There are a number of benefits of filing for such bankruptcies. First, it offers an opportunity to saving your property from foreclosure. Filing for these bankruptcies will stop any scheduled foreclosures hence a person may pay their owed overdue mortgages over time. Nonetheless, debtors have to make pay the mortgages on a timely basis under this kind of bankruptcy.
Another benefit is that the debtor can be able to reschedule secured debts and extend them for the entire life of reorganization plan. However, mortgage for the primary residence may not be rescheduled. Rescheduling of the debts may lower the payments.
Chapter 13 is the reorganization or wage earner bankruptcy while chapter seven is the liquidation bankruptcy. However, not everyone can file for reorganization. This form of bankruptcy cannot be applied for by corporations or sole proprietorships. This is because in this form of bankruptcy you need to be in a position to make payments. There is also the limit on how much debt you need to have so as to file for this bankruptcy.
Qualifications for chapter 13 generally requires that certain conditions are met. One such requirement is that a person should not be a business unit. This option is solely for individuals and joint applicants, for instance, a person and his or her spouse. For instance, businesses like corporations or limited companies remain ineligible for the reorganization bankruptcy. Even though business owners may file for such a bankruptcy under the name of their business, debtors may apply for repayments under their names to recover such debts owed.
The other provision is that the person applying for the bankruptcy is not under obligation of some previous bankruptcy. If debtors had cleared your previously owed obligations over the last 2 years under a reorganizational bankruptcy or under a liquidation over the previous 4 years, the debtors will be barred from seeking reorganizational bankruptcies up to the end of the specified bankruptcy duration.
Again, you may not file for such a bankruptcy if an earlier bankruptcy request was dismissed in the last 6 months for some reasons. The first reason pertains to debtors willfully not following court procedures or did failing to appear before a court. The other reason pertains to a debtor seeking for dismissals following the requests by creditors to have a cancellation of the automatic stay.
The other requirement is for the debtor to have sufficient income for paying the debt after deducting the allowable expenses. Usually, the debtor may include income from spouse who is working even when the spouse has not jointly filed for bankruptcy, salary and wages, and income from self-employment. To qualify for chapter 13, the debtor must also have sufficient income for mandatory payments to unsecured creditors and priority.
There are a number of benefits of filing for such bankruptcies. First, it offers an opportunity to saving your property from foreclosure. Filing for these bankruptcies will stop any scheduled foreclosures hence a person may pay their owed overdue mortgages over time. Nonetheless, debtors have to make pay the mortgages on a timely basis under this kind of bankruptcy.
Another benefit is that the debtor can be able to reschedule secured debts and extend them for the entire life of reorganization plan. However, mortgage for the primary residence may not be rescheduled. Rescheduling of the debts may lower the payments.
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