Whenever one thinks of bankruptcy, what comes to mind is the chapter 7 plans that eliminate the obligation of the individual to repay majority of their debts. The other option is chapter 13 plan which is suitable for people who might be later with house or car repayments. The majority of debtors in this plan look to save important assets in addition to getting discharge orders from the court. In consideration of chapter 13 Salt Lake City Utah debtors need to know what is involved.
All the bankruptcy cases normally are filed at special courts. In order to start chapter 13 cases, one starts by filing documents which list all their debts, income and assets. Altogether these are referred to as schedules, petition and statement of financial affairs. The information provided needs to be complete and accurate to the knowledge of those affected. The information is signed under penalty of perjury.
The repayment plan will last between 3 to 5 years. The maximum they should last is 5 years. As the case begins, the debtor is supposed to come up with their proposition of the repayment plan. There is classification of the debts according to their security, that is, those that are secured and those that are not. Unsecured debts have no collateral. There is then assignment of priority to each debt.
Debts for child support or taxes have higher priority compared to credit card debts. The monthly repayment under this plan will depend on various factors. These include how much one owes in mortgage arrears, the amount of priority debt, the income and reasonable expenses. In most cases, one is not required to repay all that is owed. In case the income is enough to pay back priority debts but not sufficient to pay others, one will not be required to pay non-priority ones.
When a case is filed, it gets assigned to a judge. A trustee will also be assigned. There is possibility that you can go through the whole procedure without appearing in court. The trustee that is appointed is charged with overseeing the case. Plan payments will be made to the trustee then they ensure the repayment of creditors is done accordingly.
A month after filing of the case, there is a meeting between the debtor, his attorney and the trustee. It is called a meeting of creditors. Funnily, you will hardly ever find creditors attending. The meeting is normally a chance for a trustee to ask the debtor questions they have about your financial situation. The trustee examines the plan of repayment to confirm that it is feasible.
Five years can be a long time and there are many things that can happen. This means there can be upset of payments. The problems that may arise are unemployment, divorce and medical issues. If you are no longer in a position to make payments, you can make changes. This will be done before it gets late.
It will still be possible to obtain credit during the case. Getting a new credit card will need to be through intervention of the court. The credit will have to be for something necessary if it is to be granted.
All the bankruptcy cases normally are filed at special courts. In order to start chapter 13 cases, one starts by filing documents which list all their debts, income and assets. Altogether these are referred to as schedules, petition and statement of financial affairs. The information provided needs to be complete and accurate to the knowledge of those affected. The information is signed under penalty of perjury.
The repayment plan will last between 3 to 5 years. The maximum they should last is 5 years. As the case begins, the debtor is supposed to come up with their proposition of the repayment plan. There is classification of the debts according to their security, that is, those that are secured and those that are not. Unsecured debts have no collateral. There is then assignment of priority to each debt.
Debts for child support or taxes have higher priority compared to credit card debts. The monthly repayment under this plan will depend on various factors. These include how much one owes in mortgage arrears, the amount of priority debt, the income and reasonable expenses. In most cases, one is not required to repay all that is owed. In case the income is enough to pay back priority debts but not sufficient to pay others, one will not be required to pay non-priority ones.
When a case is filed, it gets assigned to a judge. A trustee will also be assigned. There is possibility that you can go through the whole procedure without appearing in court. The trustee that is appointed is charged with overseeing the case. Plan payments will be made to the trustee then they ensure the repayment of creditors is done accordingly.
A month after filing of the case, there is a meeting between the debtor, his attorney and the trustee. It is called a meeting of creditors. Funnily, you will hardly ever find creditors attending. The meeting is normally a chance for a trustee to ask the debtor questions they have about your financial situation. The trustee examines the plan of repayment to confirm that it is feasible.
Five years can be a long time and there are many things that can happen. This means there can be upset of payments. The problems that may arise are unemployment, divorce and medical issues. If you are no longer in a position to make payments, you can make changes. This will be done before it gets late.
It will still be possible to obtain credit during the case. Getting a new credit card will need to be through intervention of the court. The credit will have to be for something necessary if it is to be granted.
About the Author:
You can get a summary of important things to consider when choosing a Chapter 13 Salt Lake City Utah attorney at http://www.bankruptcyutah.com/about right now.
No comments:
Post a Comment