Important Information On Chapter 13 Monterey
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Bankruptcy essentially refers to the process where businesses, as well as individuals are allowed to repay part or all of their debts but with protection guaranteed by the federal court on bankruptcy. Bankruptcies may nevertheless be classified in two categories, liquidation and reorganization bankruptcies. When bankruptcy is deemed a right option for a person, they will need to choose the category that most suits them. With Chapter 13 Monterey, a person will retain their assets even under a declaration of being bankrupt.
Chapter 13 is used in reference to reorganization bankruptcies while liquidation bankruptcies are termed as chapter seven. On the other hand, not all individuals are allowed to apply for reorganizations. For instance, corporations or even proprietors may not apply. This is since under the reorganization forms of bankruptcies, the individuals declared bankrupt must be at a position of making repayments. In addition, there is always a stipulated amount of debt that an individual has to owe so that they can be able to make applications for the reorganizational bankruptcies.
To qualify for chapter 13 you need to meet some criteria. One of the requirement is that you must not be a business entity. This option is for individuals or those filing jointly like a husband and a wife. For example, businesses such as limited companies and corporations are not eligible for reorganization bankruptcy. Although a business owner cannot file for bankruptcy in the name of his or her business, the debtors can apply in their name for those debts they are liable for.
The other provision is that the person applying for the bankruptcy is not under obligation of some previous bankruptcy. If debtors had cleared your previously owed obligations over the last 2 years under a reorganizational bankruptcy or under a liquidation over the previous 4 years, the debtors will be barred from seeking reorganizational bankruptcies up to the end of the specified bankruptcy duration.
Again, you may not file for such a bankruptcy if an earlier bankruptcy request was dismissed in the last 6 months for some reasons. The first reason pertains to debtors willfully not following court procedures or did failing to appear before a court. The other reason pertains to a debtor seeking for dismissals following the requests by creditors to have a cancellation of the automatic stay.
The other requirement is for the debtor to have sufficient income for paying the debt after deducting the allowable expenses. Usually, the debtor may include income from spouse who is working even when the spouse has not jointly filed for bankruptcy, salary and wages, and income from self-employment. To qualify for chapter 13, the debtor must also have sufficient income for mandatory payments to unsecured creditors and priority.
There are advantages for filing for reorganization bankruptcy. One advantage is that it gives the debtor an opportunity for saving their property or homes from foreclosure. By filing for this form of bankruptcy you can stop foreclosure proceedings and you can also cure overdue mortgage payment over time. However, the debtor must make the mortgage payments on time as they become due under the reorganization option.
The other gain pertains to debtors being able to re-plan secured debts and spread over the reorganization period. Nonetheless, mortgages for primary owners may never be re-planned. Rescheduling of debts can as well lower the repayment amounts.
Chapter 13 is used in reference to reorganization bankruptcies while liquidation bankruptcies are termed as chapter seven. On the other hand, not all individuals are allowed to apply for reorganizations. For instance, corporations or even proprietors may not apply. This is since under the reorganization forms of bankruptcies, the individuals declared bankrupt must be at a position of making repayments. In addition, there is always a stipulated amount of debt that an individual has to owe so that they can be able to make applications for the reorganizational bankruptcies.
To qualify for chapter 13 you need to meet some criteria. One of the requirement is that you must not be a business entity. This option is for individuals or those filing jointly like a husband and a wife. For example, businesses such as limited companies and corporations are not eligible for reorganization bankruptcy. Although a business owner cannot file for bankruptcy in the name of his or her business, the debtors can apply in their name for those debts they are liable for.
The other provision is that the person applying for the bankruptcy is not under obligation of some previous bankruptcy. If debtors had cleared your previously owed obligations over the last 2 years under a reorganizational bankruptcy or under a liquidation over the previous 4 years, the debtors will be barred from seeking reorganizational bankruptcies up to the end of the specified bankruptcy duration.
Again, you may not file for such a bankruptcy if an earlier bankruptcy request was dismissed in the last 6 months for some reasons. The first reason pertains to debtors willfully not following court procedures or did failing to appear before a court. The other reason pertains to a debtor seeking for dismissals following the requests by creditors to have a cancellation of the automatic stay.
The other requirement is for the debtor to have sufficient income for paying the debt after deducting the allowable expenses. Usually, the debtor may include income from spouse who is working even when the spouse has not jointly filed for bankruptcy, salary and wages, and income from self-employment. To qualify for chapter 13, the debtor must also have sufficient income for mandatory payments to unsecured creditors and priority.
There are advantages for filing for reorganization bankruptcy. One advantage is that it gives the debtor an opportunity for saving their property or homes from foreclosure. By filing for this form of bankruptcy you can stop foreclosure proceedings and you can also cure overdue mortgage payment over time. However, the debtor must make the mortgage payments on time as they become due under the reorganization option.
The other gain pertains to debtors being able to re-plan secured debts and spread over the reorganization period. Nonetheless, mortgages for primary owners may never be re-planned. Rescheduling of debts can as well lower the repayment amounts.
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When you are looking for the facts about a Chapter 13 Monterey locals can come to our web pages today. More details are available at http://centralcoastbankruptcy.com/chapter-13.html now.
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