What is chapter 13 bankruptcy protection? Take a glance at the answer to that query here in this short article.
Chapter 13 bankruptcy protection is simply the more acceptable of all bankruptcy protection plans offered by the central government. This plan, also called the “Wage earner’s plan “, enables those who have steady income to reimburse their creditors. The repayment schedule is to last only 5 years. The repayment schedule or schedule will last only 3 years if the debtor doesn’t have sufficient earnings. This estimate of income is decided by the state median.
Chapter 13 bankruptcy protection is considered superior to other plans because it can allow a debtor to keep their house out of foreclosure events. Another merit of the chapter 13 bankruptcy protection is that it acts like a consolidation loan. A homeowner may be able to lower their payments, but mortgage payments must still be made during Chapter 13 events. Filing this kind of bankruptcy protection will often stop the actions of collection agencies.
How do you file a Chapter 13 bankruptcy ? Filing this type of bankruptcy protection is similar to the Chapter 7 program and others. A counseling session is required before anyone can file a petition for Chapter 13 relief. The analysis agency must be a licensed agency and administered in a group or individually. The analysis will happen 180 days prior to actually filing for bankruptcy protection. Later the debtor can file in a bankruptcy court that serves his area. The filing charge as of this writing is $235 and doesn’t cover administration charges, trustee charges, lawyer fees, or any other expenses. Many forms and documents will then be required,eg tax forms, paycheck stubs, and so on.
A meeting of creditors is also held under the Chapter 13 bankruptcy protection program. In this meeting the debtor is placed under oath and is asked inquiries by the trustee and by the creditors. This meeting is held only 60 days after the bankruptcy protection is filed. This meeting is imperative and must be attended by the petitioner ( filer ). If the filing is a joint filing by a husband and better half, both must attend this meeting and answer questions. To have a successful “meeting of creditors “it is sweet to speak with the trustee before the meeting so that everything can be planned and all information shared can be accurate. The presiding bankruptcy judge is taboo from attending this meeting.
The particular court date for the Chapter 13 bankruptcy protection will have creditors, the debtor, and the trustee in attendance. The hearing and confirmation hearings will happen and when a repayment agreement can be concluded on, the debtor begins paying the trustee, who will then pay the creditors.