When the word comes to the mind of most people, what they think about is chapter 7. This is a plan that eliminates your obligation to pay off most debts. However, there is the option of chapter 13 repayments which are ideal for people who for instance are late with car or house payments. The main aim is to save essential assets and to get a discharge. In considering chapter 13 Salt Lake City Utah debtors need to be conversant with what it involves.
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 plan of repayment normally lasts some three years on the lower side. They should not however exceed 5 years. When the case starts, one is required to suggest a plan for paying all creditors who are supposed to be repaid. The debts are to be classified depending on if they are secured or unsecured. Secured debts have collateral. After that, priority is assigned to every type of 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 as well as a trustee. It is possible that you may go through the entire process without appearing in court at any time. It is the appointed trustee that oversees the case. The repayment plan is shared with the trustee who then comes with a way to ensure creditors are paid 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.
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 plan of repayment normally lasts some three years on the lower side. They should not however exceed 5 years. When the case starts, one is required to suggest a plan for paying all creditors who are supposed to be repaid. The debts are to be classified depending on if they are secured or unsecured. Secured debts have collateral. After that, priority is assigned to every type of 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 as well as a trustee. It is possible that you may go through the entire process without appearing in court at any time. It is the appointed trustee that oversees the case. The repayment plan is shared with the trustee who then comes with a way to ensure creditors are paid 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.
You can still get credit as the case proceeds. This should however be through court intervention. It should be credit for important items.
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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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