Chapter 13 bankruptcy Information articles can really just give basic guidelines set out by the codes of the Federal Court. To understand which type to file under is best left to a lawyer who specializes in this area of law. An interview about your circumstances and current obligations is often done at no charge.
Also known as, the wage earner’s plan, Ch. 13 can only be filed if you are an individual or small business owner. The business must not be a corporation or partnership, only self-employed or unincorporated are qualified. You must have a regular income that is large enough to cover your basic monthly expenses but not enough to cover your other incurred debt. There are maximum amounts for debt on unsecured and secured debt. These change to reflect the current consumer price index
Another option for debt relief is chapter 7. This allows for complete discharge of non-secured debt that you have at the time of filing. You will be able to keep your home and automobile if it meets the code limits. Other assets that do not meet guidelines will have to be forfeited to the trustee.
The wage earner’s plan allows you to keep your home, car, and most if not all of your assets. The debt that you incurred prior to filing will not be discharged in the proceedings. Instead, the debts will be compiled into a payment plan set up through the court. Other debts that are allowed to be forgiven under this chapter are not forgiven in others.
You may be able to stop a foreclosure on your home in the wage earner’s plan. The past due payments might be able to be rolled into the court payment plan so you can become current. Other secured debts may be included in the court payment modification, thereby extending the repayment and lowering the monthly cost. Third party signers or co-signers may have protection under this type of action.
When you file under the earner’s plan, you are in fact consolidating all debt into one loan. You will no longer have to deal with individual creditors. Your responsibility will be to make one monthly payment to the trustee who is then responsible for distribution of the monies owed. The repayment will be a minimum of thirty-six months but no more than five years.
This is general Chapter 13 bankruptcy Information. By searching online, you can find much more detailed parameters for this area and other areas of the bankruptcy code. The earlier you get information on this option, the easier it can be to repay your debts. Find a reputable lawyer in your area by searching the web.
We got all of the Chapter 13 bankruptcy Information and the chapter 13 bankruptcy rules you should read – come see us so that you can save your time.
Source: Debt
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