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.
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 repayment plans will normally last between three and five years, with the maximum period being 5 years. When a case starts, the debtor should come up with a proposition of how they plan to pay creditors. Debts will then get classified according to secured and unsecured ones. When a debt is secured, it means it has collateral. That is followed by assigning priority to each debt.
Debts for child support or taxes have higher priority compared to credit card debts. The monthly repayment under this plan will depend on various factors. These include how much one owes in mortgage arrears, the amount of priority debt, the income and reasonable expenses. In most cases, one is not required to repay all that is owed. In case the income is enough to pay back priority debts but not sufficient to pay others, one will not be required to pay non-priority ones.
When a case is filed, it gets assigned to a judge. A trustee will also be assigned. There is possibility that you can go through the whole procedure without appearing in court. The trustee that is appointed is charged with overseeing the case. Plan payments will be made to the trustee then they ensure the repayment of creditors is done 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 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.
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 repayment plans will normally last between three and five years, with the maximum period being 5 years. When a case starts, the debtor should come up with a proposition of how they plan to pay creditors. Debts will then get classified according to secured and unsecured ones. When a debt is secured, it means it has collateral. That is followed by assigning priority to each debt.
Debts for child support or taxes have higher priority compared to credit card debts. The monthly repayment under this plan will depend on various factors. These include how much one owes in mortgage arrears, the amount of priority debt, the income and reasonable expenses. In most cases, one is not required to repay all that is owed. In case the income is enough to pay back priority debts but not sufficient to pay others, one will not be required to pay non-priority ones.
When a case is filed, it gets assigned to a judge. A trustee will also be assigned. There is possibility that you can go through the whole procedure without appearing in court. The trustee that is appointed is charged with overseeing the case. Plan payments will be made to the trustee then they ensure the repayment of creditors is done 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 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.
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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