What Is Chapter 13 Bankruptcy?
Chapter 13 bankruptcy is part of the US bankruptcy code and is governed under federal law, not state law. In chapter 13 bankruptcy, a debtor is required to pay back some or all of the debts that they owe to creditors, following the guidelines set forth in the structured repayment plan filed with the bankruptcy court. Chapter 13 bankruptcies do not include the liquidation of assets or property like in a chapter 7 bankruptcy filing. This generally allows the debtor filing a chapter 13 bankruptcy petition to retain all their property throughout the chapter 13 bankruptcy processes and after the discharge. The retention of one's property or assets is usually the main reason I most debtor's file chapter 13 bankruptcy.
Chapter 13 bankruptcy is a powerful tool used in either debt elimination or debt reduction, and can help a debtor reduce the principles of their debts and lower interest rates. With the help of these lower interest rates and principal amounts, chapter 13 bankruptcy can be just what a debtor needs to get their head above water and move forward while still paying back their debts owed. Chapter 13 bankruptcy also allows the debtor to catch up on their past due payments and overdue debts. Since chapter 13 bankruptcy requires that the debtor's either partially or fully pay back their creditors, the debtor must have a steady form of income to contribute to the structured repayment plan which the US bankruptcy trustee will use to make payments to the debtor's creditors.
In chapter 13 bankruptcy the debtor can work closely with their bankruptcy attorney to design a structured repayment plan which allocates a specified amount of the debtor's future income in which the US bankruptcy trustee will used to pay back creditors. Chapter 13 bankruptcies can also be a powerful tool used during foreclosure to stop the foreclosure process through the use of the bankruptcy automatic stay, which can be used to save a debtor's house from foreclosure. Chapter 13 bankruptcy allows the debtor chance to play a significant role in how their structured repayment plan will be put together prior to be filed with the bankruptcy court. The chapter 13 debtor working in conjunction with their bankruptcy attorney formulate a structured repayment plan, using this steady monthly income to determine a repayment of some or all of their debts that best fit their particular situation. The next step in a chapter 13 bankruptcy is to have the bankruptcy attorney a concise repayment plan and submits to the bankruptcy court for their approval. Payments are made on the repayment plan usually within 30 days after the chapter 13 bankruptcy case is filed and the entire chapter 13 bankruptcy process usually takes between 3 to 5 years to complete a payment plan to pay off creditors. Creditors are closely monitored during the timeframe of the structured repayment plan and must closely follow the structured repayment plan and are not allowed to collect on debts that are not included in the repayment plan. The U.S. Bankruptcy Court is charged with the duty of overseeing the entire chapter 13 bankruptcy processes, making sure that both the creditors and debtor closely follow the structured repayment plan submitted to the U.S. Bankruptcy Court.
For more information on chapter 7 bankruptcy, chapter 13 bankruptcy, credit card debt settlement and mortgage modifications please visit our website at: http://massachusettslawyeronline.com/
Chapter 13 bankruptcy is part of the US bankruptcy code and is governed under federal law, not state law. In chapter 13 bankruptcy, a debtor is required to pay back some or all of the debts that they owe to creditors, following the guidelines set forth in the structured repayment plan filed with the bankruptcy court. Chapter 13 bankruptcies do not include the liquidation of assets or property like in a chapter 7 bankruptcy filing. This generally allows the debtor filing a chapter 13 bankruptcy petition to retain all their property throughout the chapter 13 bankruptcy processes and after the discharge. The retention of one's property or assets is usually the main reason I most debtor's file chapter 13 bankruptcy.
Chapter 13 bankruptcy is a powerful tool used in either debt elimination or debt reduction, and can help a debtor reduce the principles of their debts and lower interest rates. With the help of these lower interest rates and principal amounts, chapter 13 bankruptcy can be just what a debtor needs to get their head above water and move forward while still paying back their debts owed. Chapter 13 bankruptcy also allows the debtor to catch up on their past due payments and overdue debts. Since chapter 13 bankruptcy requires that the debtor's either partially or fully pay back their creditors, the debtor must have a steady form of income to contribute to the structured repayment plan which the US bankruptcy trustee will use to make payments to the debtor's creditors.
In chapter 13 bankruptcy the debtor can work closely with their bankruptcy attorney to design a structured repayment plan which allocates a specified amount of the debtor's future income in which the US bankruptcy trustee will used to pay back creditors. Chapter 13 bankruptcies can also be a powerful tool used during foreclosure to stop the foreclosure process through the use of the bankruptcy automatic stay, which can be used to save a debtor's house from foreclosure. Chapter 13 bankruptcy allows the debtor chance to play a significant role in how their structured repayment plan will be put together prior to be filed with the bankruptcy court. The chapter 13 debtor working in conjunction with their bankruptcy attorney formulate a structured repayment plan, using this steady monthly income to determine a repayment of some or all of their debts that best fit their particular situation. The next step in a chapter 13 bankruptcy is to have the bankruptcy attorney a concise repayment plan and submits to the bankruptcy court for their approval. Payments are made on the repayment plan usually within 30 days after the chapter 13 bankruptcy case is filed and the entire chapter 13 bankruptcy process usually takes between 3 to 5 years to complete a payment plan to pay off creditors. Creditors are closely monitored during the timeframe of the structured repayment plan and must closely follow the structured repayment plan and are not allowed to collect on debts that are not included in the repayment plan. The U.S. Bankruptcy Court is charged with the duty of overseeing the entire chapter 13 bankruptcy processes, making sure that both the creditors and debtor closely follow the structured repayment plan submitted to the U.S. Bankruptcy Court.
For more information on chapter 7 bankruptcy, chapter 13 bankruptcy, credit card debt settlement and mortgage modifications please visit our website at: http://massachusettslawyeronline.com/
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