Thursday 30 August 2018

All About Filing A Chapter 13 Monterey

By Kevin Young


It is not impossible for financially responsible consumers to find themselves in financial problems. After all, there are things that are beyond our control. For instance, you may lose your job or get demoted. The financial markets can also develop problems that can push interest rates up and reduce property prices. Whatever the case, you can always file for bankruptcy if you find yourself with a lot of bad debt that you cannot service. Chapter 13 Monterey residents should know, is the best bankruptcy option for consumers.

This bankruptcy option is only meant for individual debtors. To qualify, you must have a reliable source of income as well as personal debts that meet the threshold specified in bankruptcy laws. With this option, the debtor only needs to pay regular monthly payments for several years to get debt forgiveness.

It is important to note that student loans, taxes, spousal support and child support payments can never be forgiven through bankruptcy. If these debts accountant for a huge portion of your debts, you should consider other options because bankruptcy may not be able to help you a lot. Consider debt refinancing or consolidation.

It is crucial to note that bankruptcy may affect your life, finances and career significantly. For starters, if you hold a job that requires you not to be bankrupt, you may lose that job. Getting an affordable loan in the future will also become a challenge because lenders will know about your bankruptcy. Renting a car or house will also become a challenge due to your bankruptcy.

This option will allow you to retain all your assets. Nothing will be sold to pay off your debts. This option is also much more discrete than chapter 7. However, if you default on the payments, the trustee will initiate chapter 7 proceedings to liquidate your assets.

Getting rid of bankruptcy from your credit report will take time. In fact, it will take several years for the bankruptcy entry to be deleted from your report. During this period, a credit check will reveal that you are a bankrupt consumer. As a result, property managers and car leasing companies may not be willing to approve your tenancy application or your car lease request.

The beauty of this bankruptcy option is that the monthly payments you will pay are usually based on your disposable income. If you can only afford to spare $200 a month, that is what will be use to offset your debts, even if your total debt is over a hundred thousand dollars. After the bankruptcy period, all unpaid debts will be forgiven.

It is always a good idea to hire a competent bankruptcy attorney. This is necessary because you want to be well informed throughout the case. You will also need help filling and filing the paperwork. Be sure to compare the reputation and experiences of local bankruptcy lawyers before making a decision.




About the Author:



No comments:

Post a Comment