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. 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.
One month after the case is filed, there will be a meeting between you and an attorney, as well as the trustee. This is a meeting of creditors. The funny bit is that creditors will rarely ever attend these meetings. The meeting is a chance for the trustee to clarify questions they may have about your financial situation. Trustees also get to examine the repayment plan to see whether it is feasible.
Five years is normally long and many things could happen. There could be an upset in flow of payments. These include medical issues, unemployment and divorce among others. If you realize you are no longer able to make payments, the plan can be changed. This is however easily done before it is too late.
It will still be possible to obtain credit during the case. Getting a new credit card will need to be through intervention of the court. The credit will have to be for something necessary if it is to be granted.
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. 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.
One month after the case is filed, there will be a meeting between you and an attorney, as well as the trustee. This is a meeting of creditors. The funny bit is that creditors will rarely ever attend these meetings. The meeting is a chance for the trustee to clarify questions they may have about your financial situation. Trustees also get to examine the repayment plan to see whether it is feasible.
Five years is normally long and many things could happen. There could be an upset in flow of payments. These include medical issues, unemployment and divorce among others. If you realize you are no longer able to make payments, the plan can be changed. This is however easily done before it is too late.
It will still be possible to obtain credit during the case. Getting a new credit card will need to be through intervention of the court. The credit will have to be for something necessary if it is to be granted.
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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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