Chapter 13 Bankruptcy Rules Solutions?

Jul 30th, 2014 | By | Category: Info

A Chapter 13 bankruptcy is the specific type of legal proceeding that is granted under Federal statues to provide a repayment program for debts that are owed. Under Chapter 13 bankruptcy, a three-year or a five-year repayment plan is created for specific creditors according to the norms governing bankruptcy and through agreement by all parties involved. The arrangements are all supervised by a trustee who is designated by the Federal court.

When someone files a Chapter 13, it means that they’re not able to repay their debt obligations as they originally agreed to do when the debt was taken on. Chapter 13 bankruptcy law allows for these debts to be reorganized for the subject of repayment. This is different than a Chapter 7 one, in which the debts are discharged immediately rather than being set forward with a repayment schedule.

I really didn’t know…

One of the more common classes of bankruptcy, Chapter 13, is designed for those with a steady income. People who file for Chapter 13 bankruptcy will be permitted to hold on to their home, belongings, and car, so far as they vow to obey the court-approved repayment plan. The court approved repayment schedule is established to help you submit the minimum payments, with a view to repay your creditors. Any missed payment can cause further legal problems associated with the court and creditors.

Amid recent reports that Kodak could be headed into bankruptcy, financial advisers in Rochester, N.Y., where the company is based, are seeing more and more Kodak retirees who are anxious about their personal financial futures. Once upon a time, Kodak provided secure, good-paying jobs to tens of thousands of local residents. For about the past 25 years, the company has been shedding local employees — from a high of more than 60,000 in 1982 to about 6,000 today. Lawson says that …

Chapter 7 bankruptcy is often for people with no steady income unlike Chapter 13. In order to repay part of the debt, the court will have most of your personal belongings sold off, but it will eliminate all your debt as a result. Chapter 7 won’t remove debt from a student loan or child support. However, it will clear you from paying any other debt you may have. Regardless of whether you visit a Simi Valley Bankruptcy Attorney or a Norwalk attorney, you’ll get all this information.

In most cases, a Chapter 13 one has a repayment plan under which the debtor makes monthly, bimonthly or weekly payments to the trustee. The trustee then provides help by taking care of properly dispersing the payments to the creditors. In most instances, the amount of the debt has been restructured and is lower than the full amount that is due to all the creditors.

For a debtor who’s agreed to a Chapter 13 bankruptcy repayment plan to be able to seek a ‘hardship discharge,’ the case cannot qualify to be changed into a Chapter 7 one instead. It is best to have a bankruptcy attorney reviews the various guidelines and requirements before attempting to make any type of the amendments to a Chapter 13 plan.

Any type of change to a filing Chapter 13 bankruptcy means that the debtor must go back to the court and this step can be both stressful and expensive. It is strongly recommended to make every effort to adhere to the repayment plan because of this.


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