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.
Bankruptcy cases are filed and handled at special courts. To start off a case, there is filing of documents that list all their incomes, debts and assets. These are altogether known as schedules, petitions and statements of financial affairs. All information which is provided must be complete and accurate and to the best knowledge of the individual. All provided information gets 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.
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 the case gets filed, it will be assigned to some bankruptcy judge and a trustee. There is the possibility that one will go over the entire process without having to appear in court before a judge. The appointed trustee is the one that oversees the case. The plan payments are made to the trustee who then ensures it gets to the required creditors.
A month after filing of the case, there should be a meeting between the trustee, debtor and attorney for the debtor. This is known as a meeting of creditors. Weirdly, you never find creditors at the meeting. It gives the trustee an opportunity to ask any questions they may have as regards the financial situation of the debtor. The trustee also examines debtor repayment plan to determine its feasibility.
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.
It still is possible to get credit as the case continues. One will have to get a new credit card but through court intervention. It should be a credit card for necessary items.
Bankruptcy cases are filed and handled at special courts. To start off a case, there is filing of documents that list all their incomes, debts and assets. These are altogether known as schedules, petitions and statements of financial affairs. All information which is provided must be complete and accurate and to the best knowledge of the individual. All provided information gets 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.
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 the case gets filed, it will be assigned to some bankruptcy judge and a trustee. There is the possibility that one will go over the entire process without having to appear in court before a judge. The appointed trustee is the one that oversees the case. The plan payments are made to the trustee who then ensures it gets to the required creditors.
A month after filing of the case, there should be a meeting between the trustee, debtor and attorney for the debtor. This is known as a meeting of creditors. Weirdly, you never find creditors at the meeting. It gives the trustee an opportunity to ask any questions they may have as regards the financial situation of the debtor. The trustee also examines debtor repayment plan to determine its feasibility.
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.
It still is possible to get credit as the case continues. One will have to get a new credit card but through court intervention. It should be a credit card for necessary 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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