When debts become overwhelming, there are many people who prefer to declare bankruptcy. The type of bankruptcy will depend on the needs of the individual and their income. For example, people with little income remaining when the month ends and less assets choose chapter 7. This option wipes out qualifying debt within 4 to 6 months without needing to pay creditors. When considering chapter 13 Monterey residents need to know what it entails.
People who earn significant income or those who want to protect their valuable property tend to file for chapter 13. For being offered the debt relief, the filer pays their discretionary income to creditors. That happens over a period of 3 to 5 years. There are a number of reasons why people opt for chapter 13. In the first place, it helps with foreclosure. It will help in saving a home from being foreclosed.
Under normal circumstances, you will find banks require that a borrower pays back in totality the mortgage arrears. That might not work for families or individuals who are struggling financially and thus there is possibility that they might lose their homes. With chapter 13, debtors could be the ones to dictate repayment terms. The amounts which are past-due will be broken down into manageable bits to be paid back within the lifespan of the process.
When one files for this form of bankruptcy, it will be possible to have the mortgage modified. It will be possible to dictate to lenders the terms under which to pay out past-due payments. That is in addition to the fact that it will be possible to have the mortgage modified. The first mortgage is never supposed to get modified in any way by the second or third can be modified through lien stripping. After a mortgage is stripped, the debtor will pay off the loan using the rest of unsecured debt.
There is a benefit of chapter 13 over 7 is as concerns the credit report. With chapter 13, there will be showing of the bankruptcy on your credit report for 7 years or so, as compared with 10 years in the case of chapter 7. The implication is that creditors will know your credit history for a shorter period, which will work to your advantage.
There are some requirements before one can qualify for this bankruptcy. One of the first things to understand is that there are debt limits. Secured and unsecured debts cannot exceed some amounts. If the total debt is too high, you will definitely be disqualified. The second requirement is that you will be required to prove that your income is steady. That means you should be able to afford both monthly household obligations and still be able to repay into the repayment plan.
This option is never available for companies. That means that only individuals are eligible. Nevertheless, business-related debts which one is personally responsible for can be part of the plan. That means that a sole proprietorship will be able to benefit.
Upon completion of the repayment plan, you will need show the courts that you are current on alimony obligations and child support. You should also have completed the counseling course. With those requirements met, the remaining balance on qualifying dischargeable debts will be wiped out.
People who earn significant income or those who want to protect their valuable property tend to file for chapter 13. For being offered the debt relief, the filer pays their discretionary income to creditors. That happens over a period of 3 to 5 years. There are a number of reasons why people opt for chapter 13. In the first place, it helps with foreclosure. It will help in saving a home from being foreclosed.
Under normal circumstances, you will find banks require that a borrower pays back in totality the mortgage arrears. That might not work for families or individuals who are struggling financially and thus there is possibility that they might lose their homes. With chapter 13, debtors could be the ones to dictate repayment terms. The amounts which are past-due will be broken down into manageable bits to be paid back within the lifespan of the process.
When one files for this form of bankruptcy, it will be possible to have the mortgage modified. It will be possible to dictate to lenders the terms under which to pay out past-due payments. That is in addition to the fact that it will be possible to have the mortgage modified. The first mortgage is never supposed to get modified in any way by the second or third can be modified through lien stripping. After a mortgage is stripped, the debtor will pay off the loan using the rest of unsecured debt.
There is a benefit of chapter 13 over 7 is as concerns the credit report. With chapter 13, there will be showing of the bankruptcy on your credit report for 7 years or so, as compared with 10 years in the case of chapter 7. The implication is that creditors will know your credit history for a shorter period, which will work to your advantage.
There are some requirements before one can qualify for this bankruptcy. One of the first things to understand is that there are debt limits. Secured and unsecured debts cannot exceed some amounts. If the total debt is too high, you will definitely be disqualified. The second requirement is that you will be required to prove that your income is steady. That means you should be able to afford both monthly household obligations and still be able to repay into the repayment plan.
This option is never available for companies. That means that only individuals are eligible. Nevertheless, business-related debts which one is personally responsible for can be part of the plan. That means that a sole proprietorship will be able to benefit.
Upon completion of the repayment plan, you will need show the courts that you are current on alimony obligations and child support. You should also have completed the counseling course. With those requirements met, the remaining balance on qualifying dischargeable debts will be wiped out.
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Find an overview of the benefits of consulting a Chapter 13 Monterey attorney and more info about a reliable lawyer at http://www.centralcoastbankruptcy.com today.
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