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.
One of the most attractive features of this option is the ability to keep your home. This is as long as you will be paying off the mortgage under the payment plan. The person is usually given some 3 to 5 years for them to resolve their debts as they apply all disposable income to reduction of the debts. Applicants will be allowed to eliminate all unsecured debts as they catch up on any missed mortgage payments.
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.
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 chapter 13 are required to stipulate that they have never had a bankruptcy petition dismissed in the 180 days prior to filing because they were unwilling to appear in court. There is also need for credit counseling from an agency that is approved. After one does the filing, they are required to come up with a plan of repayment. Creditors are allowed to raise any objections to the plan.
After a repayment plan is approved, it is up to a debtor to ensure the budget plan works. If you fail to make the agreed payments, the issue will be taken back to court for further review. This includes selling property of the debtor so as to settle outstanding debts. It is important to hire an attorney to advice on the best way to go about the process.
Businesses and sole proprietorships are not allowed to file for chapter 13. The same will apply to stock brokers and commodity brokers. When one does the filing in this option, they will be under the obligation to indicate their income sources. The information is to be submitted before court. The tax filings should also be current.
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.
One of the most attractive features of this option is the ability to keep your home. This is as long as you will be paying off the mortgage under the payment plan. The person is usually given some 3 to 5 years for them to resolve their debts as they apply all disposable income to reduction of the debts. Applicants will be allowed to eliminate all unsecured debts as they catch up on any missed mortgage payments.
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.
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 chapter 13 are required to stipulate that they have never had a bankruptcy petition dismissed in the 180 days prior to filing because they were unwilling to appear in court. There is also need for credit counseling from an agency that is approved. After one does the filing, they are required to come up with a plan of repayment. Creditors are allowed to raise any objections to the plan.
After a repayment plan is approved, it is up to a debtor to ensure the budget plan works. If you fail to make the agreed payments, the issue will be taken back to court for further review. This includes selling property of the debtor so as to settle outstanding debts. It is important to hire an attorney to advice on the best way to go about the process.
Businesses and sole proprietorships are not allowed to file for chapter 13. The same will apply to stock brokers and commodity brokers. When one does the filing in this option, they will be under the obligation to indicate their income sources. The information is to be submitted before court. The tax filings should also be current.
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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