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الأربعاء، 5 أبريل 2017
Basically, bankruptcy is a process that allows businesses or individuals to repay all or part of their debts under the protection from the federal bankruptcy court. Bankruptcies can, however, be divided into two, the reorganization and liquidation bankruptcies. If bankruptcy is the right option for you, you will have to decide the type that is most beneficial. Through Chapter 13 Monterey, you retain your assets while declaring bankruptcy.
Chapter 13 refers to a wage earner or reorganization bankruptcy, even as chapter seven refers to liquidation bankruptcy. Nevertheless, not every person will file for reorganization. This category of bankruptcy may never be applied for by sole proprietorships and corporations. This is for the reason that under it, the person declared bankrupt should be able to make payments. There also exists a limit on the much debt a person will be required to owe in order to apply for a reorganization bankruptcy.
To qualify for chapter 13 you need to meet some criteria. One of the requirement is that you must not be a business entity. This option is for individuals or those filing jointly like a husband and a wife. For example, businesses such as limited companies and corporations are not eligible for reorganization bankruptcy. Although a business owner cannot file for bankruptcy in the name of his or her business, the debtors can apply in their name for those debts they are liable for.
The other requirement needs that a person should not be under the burden of a previous bankruptcy. If a debtor cleared your debt that was previously owed in last two years through a reorganization or for liquidation in the last 4 years, such debtors remain ineligible to get reorganization bankruptcies until the specified time elapses.
Another condition to be met is that an application done earlier for this kind of bankruptcy and dismissed within in the last period of 6 months means that you are ineligible. This especially applies if you did not comply with the court processes. The other reason could be that the applicant making such applications had their creditors apply for debt cancellations via automatic stays.
The other requirement is for the debtor to have sufficient income for paying the debt after deducting the allowable expenses. Usually, the debtor may include income from spouse who is working even when the spouse has not jointly filed for bankruptcy, salary and wages, and income from self-employment. To qualify for chapter 13, the debtor must also have sufficient income for mandatory payments to unsecured creditors and priority.
There are advantages for filing for reorganization bankruptcy. One advantage is that it gives the debtor an opportunity for saving their property or homes from foreclosure. By filing for this form of bankruptcy you can stop foreclosure proceedings and you can also cure overdue mortgage payment over time. However, the debtor must make the mortgage payments on time as they become due under the reorganization option.
The other gain pertains to debtors being able to re-plan secured debts and spread over the reorganization period. Nonetheless, mortgages for primary owners may never be re-planned. Rescheduling of debts can as well lower the repayment amounts.
Chapter 13 refers to a wage earner or reorganization bankruptcy, even as chapter seven refers to liquidation bankruptcy. Nevertheless, not every person will file for reorganization. This category of bankruptcy may never be applied for by sole proprietorships and corporations. This is for the reason that under it, the person declared bankrupt should be able to make payments. There also exists a limit on the much debt a person will be required to owe in order to apply for a reorganization bankruptcy.
To qualify for chapter 13 you need to meet some criteria. One of the requirement is that you must not be a business entity. This option is for individuals or those filing jointly like a husband and a wife. For example, businesses such as limited companies and corporations are not eligible for reorganization bankruptcy. Although a business owner cannot file for bankruptcy in the name of his or her business, the debtors can apply in their name for those debts they are liable for.
The other requirement needs that a person should not be under the burden of a previous bankruptcy. If a debtor cleared your debt that was previously owed in last two years through a reorganization or for liquidation in the last 4 years, such debtors remain ineligible to get reorganization bankruptcies until the specified time elapses.
Another condition to be met is that an application done earlier for this kind of bankruptcy and dismissed within in the last period of 6 months means that you are ineligible. This especially applies if you did not comply with the court processes. The other reason could be that the applicant making such applications had their creditors apply for debt cancellations via automatic stays.
The other requirement is for the debtor to have sufficient income for paying the debt after deducting the allowable expenses. Usually, the debtor may include income from spouse who is working even when the spouse has not jointly filed for bankruptcy, salary and wages, and income from self-employment. To qualify for chapter 13, the debtor must also have sufficient income for mandatory payments to unsecured creditors and priority.
There are advantages for filing for reorganization bankruptcy. One advantage is that it gives the debtor an opportunity for saving their property or homes from foreclosure. By filing for this form of bankruptcy you can stop foreclosure proceedings and you can also cure overdue mortgage payment over time. However, the debtor must make the mortgage payments on time as they become due under the reorganization option.
The other gain pertains to debtors being able to re-plan secured debts and spread over the reorganization period. Nonetheless, mortgages for primary owners may never be re-planned. Rescheduling of debts can as well lower the repayment amounts.
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When you are looking for the facts about a Chapter 13 Monterey locals can come to our web pages today. More details are available at http://centralcoastbankruptcy.com/chapter-13.html now.
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