djamal-soft
السبت، 10 فبراير 2018
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 cases about bankruptcy are filed in special courts. When starting chapter 13 cases, there is first filing of documents with details about debts, income and assets. These are together known as petitions, schedules and statements of financial affairs. All details that are given need to be very accurately given to the best of your knowledge. This is important because one is required to sign them under a penalty of perjury.
The repayment plans will normally last between three and five years, with the maximum period being 5 years. When a case starts, the debtor should come up with a proposition of how they plan to pay creditors. Debts will then get classified according to secured and unsecured ones. When a debt is secured, it means it has collateral. That is followed by assigning priority to each debt.
The debts that are for child support will be given higher priority than for instance those for credit cards. The plan of repayment depends on a number of factors such as the amount one owes in mortgage arrears, their income, reasonable expenses and amount of priority debts. There is never a requirement that one has to pay all that they owe. If for instance the income is enough to pay off priority debts and not other debts, you will not be under obligation to pay off the 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.
One month after the case is filed, there will be a meeting between you and an attorney, as well as the trustee. This is a meeting of creditors. The funny bit is that creditors will rarely ever attend these meetings. The meeting is a chance for the trustee to clarify questions they may have about your financial situation. Trustees also get to examine the repayment plan to see whether it is feasible.
Five years is a long long time and many things can happen within that period. There may be disruption in payments. The issues that might arise include unemployment, medical problems and divorce. Should it be such that you are not in a position to make repayments, you can have the plan modified. This is best done before it is late.
You can still get credit as the case proceeds. This should however be through court intervention. It should be credit for important items.
All cases about bankruptcy are filed in special courts. When starting chapter 13 cases, there is first filing of documents with details about debts, income and assets. These are together known as petitions, schedules and statements of financial affairs. All details that are given need to be very accurately given to the best of your knowledge. This is important because one is required to sign them under a penalty of perjury.
The repayment plans will normally last between three and five years, with the maximum period being 5 years. When a case starts, the debtor should come up with a proposition of how they plan to pay creditors. Debts will then get classified according to secured and unsecured ones. When a debt is secured, it means it has collateral. That is followed by assigning priority to each debt.
The debts that are for child support will be given higher priority than for instance those for credit cards. The plan of repayment depends on a number of factors such as the amount one owes in mortgage arrears, their income, reasonable expenses and amount of priority debts. There is never a requirement that one has to pay all that they owe. If for instance the income is enough to pay off priority debts and not other debts, you will not be under obligation to pay off the 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.
One month after the case is filed, there will be a meeting between you and an attorney, as well as the trustee. This is a meeting of creditors. The funny bit is that creditors will rarely ever attend these meetings. The meeting is a chance for the trustee to clarify questions they may have about your financial situation. Trustees also get to examine the repayment plan to see whether it is feasible.
Five years is a long long time and many things can happen within that period. There may be disruption in payments. The issues that might arise include unemployment, medical problems and divorce. Should it be such that you are not in a position to make repayments, you can have the plan modified. This is best done before it is late.
You can still get credit as the case proceeds. This should however be through court intervention. It should be credit for important items.
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.
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