Chapter 13 Salt Lake City Utah
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.
Bankruptcy cases are filed and handled at special courts. To start off a case, there is filing of documents that list all their incomes, debts and assets. These are altogether known as schedules, petitions and statements of financial affairs. All information which is provided must be complete and accurate and to the best knowledge of the individual. All provided information gets signed under penalty of perjury.
The plan of repayment normally lasts some three years on the lower side. They should not however exceed 5 years. When the case starts, one is required to suggest a plan for paying all creditors who are supposed to be repaid. The debts are to be classified depending on if they are secured or unsecured. Secured debts have collateral. After that, priority is assigned to every type of debt.
You will note that debts that are for child support or for taxes are more highly prioritized than for instance credit card debts. Monthly payments under chapter 13 are dependent on a number of factors. The factors include amounts one owes in mortgage arrears, their income and reasonable taxes. In many instances, it is not mandatory to pay all that you owe. If your income is adequate to pay back priority debts but it is not enough to repay others, you do not have to repay the ones that are not priority.
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 should be a meeting between the trustee, debtor and attorney for the debtor. This is known as a meeting of creditors. Weirdly, you never find creditors at the meeting. It gives the trustee an opportunity to ask any questions they may have as regards the financial situation of the debtor. The trustee also examines debtor repayment plan to determine its feasibility.
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 still is possible to get credit as the case continues. One will have to get a new credit card but through court intervention. It should be a credit card for necessary items.
Bankruptcy cases are filed and handled at special courts. To start off a case, there is filing of documents that list all their incomes, debts and assets. These are altogether known as schedules, petitions and statements of financial affairs. All information which is provided must be complete and accurate and to the best knowledge of the individual. All provided information gets signed under penalty of perjury.
The plan of repayment normally lasts some three years on the lower side. They should not however exceed 5 years. When the case starts, one is required to suggest a plan for paying all creditors who are supposed to be repaid. The debts are to be classified depending on if they are secured or unsecured. Secured debts have collateral. After that, priority is assigned to every type of debt.
You will note that debts that are for child support or for taxes are more highly prioritized than for instance credit card debts. Monthly payments under chapter 13 are dependent on a number of factors. The factors include amounts one owes in mortgage arrears, their income and reasonable taxes. In many instances, it is not mandatory to pay all that you owe. If your income is adequate to pay back priority debts but it is not enough to repay others, you do not have to repay the ones that are not priority.
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 should be a meeting between the trustee, debtor and attorney for the debtor. This is known as a meeting of creditors. Weirdly, you never find creditors at the meeting. It gives the trustee an opportunity to ask any questions they may have as regards the financial situation of the debtor. The trustee also examines debtor repayment plan to determine its feasibility.
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 still is possible to get credit as the case continues. One will have to get a new credit card but through court intervention. It should be a credit card for necessary 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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Title: Chapter 13 Salt Lake City Utah
Author: Jose Thomas
Email: nathanwebster335@live.com
Keywords: chapter 13 salt lake city Utah
Word Count: 526
Category: Finance
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