When people think of bankruptcy, chances are that they are thinking of chapter 7 which eliminates the obligation to repay most debts. There however is also chapter 13 repayment plan that comes in handy for individuals who may be late with their house or car payments. The goal of most debtors with this plan will be to save important assets and also get a discharge. When considering chapter 13 Salt Lake City Utah residents need to be versed with it.
All the bankruptcy cases normally are filed at special courts. In order to start chapter 13 cases, one starts by filing documents which list all their debts, income and assets. Altogether these are referred to as schedules, petition and statement of financial affairs. The information provided needs to be complete and accurate to the knowledge of those affected. The information is 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 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 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 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.
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.
All the bankruptcy cases normally are filed at special courts. In order to start chapter 13 cases, one starts by filing documents which list all their debts, income and assets. Altogether these are referred to as schedules, petition and statement of financial affairs. The information provided needs to be complete and accurate to the knowledge of those affected. The information is 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 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 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 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.
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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