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 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.
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 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.
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 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.
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 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.
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.