Bankruptcy generally allows individuals to pay back debts owed but under protection offered by federal courts on bankruptcy. Bankruptcies are of two types namely liquidation bankruptcy and reorganization bankruptcy and it is advisable to always pick a suitable plan. With Chapter 13 Monterey, you will still possess your assets even when a state of bankruptcy is declared.
Chapter 13 is the reorganization or wage earner bankruptcy while chapter seven is the liquidation bankruptcy. However, not everyone can file for reorganization. This form of bankruptcy cannot be applied for by corporations or sole proprietorships. This is because in this form of bankruptcy you need to be in a position to make payments. There is also the limit on how much debt you need to have so as to file for this bankruptcy.
Qualifications for chapter 13 generally requires that certain conditions are met. One such requirement is that a person should not be a business unit. This option is solely for individuals and joint applicants, for instance, a person and his or her spouse. For instance, businesses like corporations or limited companies remain ineligible for the reorganization bankruptcy. Even though business owners may file for such a bankruptcy under the name of their business, debtors may apply for repayments under their names to recover such debts owed.
Another requirement is that you must not be prevented by a prior bankruptcy. If the debtor discharged the debt within the past two years under reorganization or within the past four years under liquidation, such a debtor is not eligible for reorganization until the time has elapsed.
Again, you may not file for such a bankruptcy if an earlier bankruptcy request was dismissed in the last 6 months for some reasons. The first reason pertains to debtors willfully not following court procedures or did failing to appear before a court. The other reason pertains to a debtor seeking for dismissals following the requests by creditors to have a cancellation of the automatic stay.
One other need is that a debtor needs to have some steady earning that will sufficiently repay their debts after deducting any allowable expenses. Usually, debtors have to attach the earnings of their husbands or wives suppose they are employed and this applies even when the bankruptcy was under a joint application. Chapter 13 qualifications additionally require debtors to be adequately earning to permit any mandatory repayment to their creditors if the debts are unsecured.
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 is that you can re-plan and spread the repayment of secured debts. Nonetheless, this re-scheduling is limited to secondary mortgage owners and not for the primary possessors. Rescheduling of debts may additionally lessen the amount to be repaid.
Chapter 13 is the reorganization or wage earner bankruptcy while chapter seven is the liquidation bankruptcy. However, not everyone can file for reorganization. This form of bankruptcy cannot be applied for by corporations or sole proprietorships. This is because in this form of bankruptcy you need to be in a position to make payments. There is also the limit on how much debt you need to have so as to file for this bankruptcy.
Qualifications for chapter 13 generally requires that certain conditions are met. One such requirement is that a person should not be a business unit. This option is solely for individuals and joint applicants, for instance, a person and his or her spouse. For instance, businesses like corporations or limited companies remain ineligible for the reorganization bankruptcy. Even though business owners may file for such a bankruptcy under the name of their business, debtors may apply for repayments under their names to recover such debts owed.
Another requirement is that you must not be prevented by a prior bankruptcy. If the debtor discharged the debt within the past two years under reorganization or within the past four years under liquidation, such a debtor is not eligible for reorganization until the time has elapsed.
Again, you may not file for such a bankruptcy if an earlier bankruptcy request was dismissed in the last 6 months for some reasons. The first reason pertains to debtors willfully not following court procedures or did failing to appear before a court. The other reason pertains to a debtor seeking for dismissals following the requests by creditors to have a cancellation of the automatic stay.
One other need is that a debtor needs to have some steady earning that will sufficiently repay their debts after deducting any allowable expenses. Usually, debtors have to attach the earnings of their husbands or wives suppose they are employed and this applies even when the bankruptcy was under a joint application. Chapter 13 qualifications additionally require debtors to be adequately earning to permit any mandatory repayment to their creditors if the debts are unsecured.
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 is that you can re-plan and spread the repayment of secured debts. Nonetheless, this re-scheduling is limited to secondary mortgage owners and not for the primary possessors. Rescheduling of debts may additionally lessen the amount to be repaid.
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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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