General questions regarding Chapter 13 bankruptcy Information will be discussed in this article. For detailed information about filing and if you can qualify is best left to a lawyer who is experienced in this branch of law. As a courtesy, an interview is often given at no charge.
As an individual, you can file under this particular code. An individual can also mean an owner of a business entity but that entity cannot be a partnership or incorporated. An income that meets the person’s basic expenses but comes short of the monthly debt responsibility is a candidate. Because of this requirement, Ch. 13 is also known as the wage earner’s plan.
Chapter 7 is another code under which individuals can file. This section may allow you to keep your home and car (if the values fall within the parameters), but other non-essential assets will have to be forfeited to the trustee. Under this code, you will be able to have all debt incurred (prior to filing), discharged, therefore, negating any further repayment.
Under Ch. 13, you may still keep your home and car and most other assets. However, this section does not zero out your obligation to pay your creditors. You will still have to pay them, but through a modified plan set up through the court. Under this code, there are additional debts that can be discharged that are not dischargeable under others.
Also, under the wage earner’s plan, you can may be able to stop foreclosure proceedings and catch up on past due payments. Other secured debt (not including the home) can be modified to extend payments over the life of this action. In effect, this may lower the payment. If you have co-signers on some of your secured debt, they too may be protected under this plan.
When you consolidate your debts, no longer will you have to interact with each creditor individually, nor will you be subjected to their telephone calls. Your responsibility will be to the court to make one payment a month. The trustee will take this money and pay your creditors. There is a limited period of time given for repayment, normally it is three years but may be extended for up to but not exceeding an additional two years.
This is general Chapter 13 bankruptcy Information. By searching online, you can find much more detailed parameters for this area and other areas of the bankruptcy code. The earlier you get information on this option, the easier it can be to repay your debts. Find a reputable lawyer in your area by searching the web.
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A Number Of Aspects About Chapter 13 Bankruptcy Information (marketersdaily.com)