Consumers have a variety of options when it comes to dealing with their debt. One of the options at their disposal is declaring bankruptcy. There are many types of bankruptcy, but chapters 7 and 13 are the most popular with individual debtors. Before declaring bankruptcy under any of these chapters, consumers are advised to familiarize themselves with the benefits and repercussions of becoming bankrupt. Read on to learn more about Chapter 13 Monterey.
This option entails restructuring of debt and applies only to individual debtors. Instead of liquidation, the applicant is required to make monthly payments to offset their debts. The payments are made over a certain number of year, after which all unpaid debts are written off. In return, the applicant gets to retain all their assets.
This financial arrangement gives the consumer a chance to retain all their assets. However, any default will lead to liquidation. This means the trustee will move to court to seek orders to liquidate the assets of the borrower. To prevent this from happening, borrowers need to make their payments according to the approved plan without defaulting.
In this bankruptcy option, the debtor is required to formulate a plan to pay off their debts. They are required to list their total monthly income and expenses as well as the proposed monthly installments. The installment will be based on what the debtor is able to afford, and not what they owe. The repayment plan must then be presented to creditors and approved by the court.
There are a number of requirements which consumers must satisfy to qualify for this option. The first is proof of income. A person must have a decent job that provides a steady monthly income. The applicant must also have few valuable assets. It is the responsibility of the trustee to determine whether or not the applicant qualifies for debt restructuring.
Once the repayment plan has been presented, creditors have the right to question the debtor on issues touching on the plan. Afterwards, the creditors will vote on whether to approve the plan or not. However, it is the judge who has the final say, so the plan can still be approved even if creditors reject it.
Once the debtor has been declared bankrupt under this legal provision, creditors will be required not to communicate with the debtor in any way. This means no phone calls, emails, faxes or house visits by creditors or their collection agents. Furthermore, the monthly payments will be forwarded to the trustee, who will disburse the payments to creditors according to their fraction of debt and order of priority.
When compared to other legal debt settlement options, this legal provision has a number of benefits. For one, debtors do not lose their property. Secondly, it helps debtors to have a huge chunk of their outstanding debts written off. Thirdly, it makes it possible for consumers to continue living their life normally and at the same time get rid of their bad debts. Lastly, it is the best option for creditors to recover most of their debts.
This option entails restructuring of debt and applies only to individual debtors. Instead of liquidation, the applicant is required to make monthly payments to offset their debts. The payments are made over a certain number of year, after which all unpaid debts are written off. In return, the applicant gets to retain all their assets.
This financial arrangement gives the consumer a chance to retain all their assets. However, any default will lead to liquidation. This means the trustee will move to court to seek orders to liquidate the assets of the borrower. To prevent this from happening, borrowers need to make their payments according to the approved plan without defaulting.
In this bankruptcy option, the debtor is required to formulate a plan to pay off their debts. They are required to list their total monthly income and expenses as well as the proposed monthly installments. The installment will be based on what the debtor is able to afford, and not what they owe. The repayment plan must then be presented to creditors and approved by the court.
There are a number of requirements which consumers must satisfy to qualify for this option. The first is proof of income. A person must have a decent job that provides a steady monthly income. The applicant must also have few valuable assets. It is the responsibility of the trustee to determine whether or not the applicant qualifies for debt restructuring.
Once the repayment plan has been presented, creditors have the right to question the debtor on issues touching on the plan. Afterwards, the creditors will vote on whether to approve the plan or not. However, it is the judge who has the final say, so the plan can still be approved even if creditors reject it.
Once the debtor has been declared bankrupt under this legal provision, creditors will be required not to communicate with the debtor in any way. This means no phone calls, emails, faxes or house visits by creditors or their collection agents. Furthermore, the monthly payments will be forwarded to the trustee, who will disburse the payments to creditors according to their fraction of debt and order of priority.
When compared to other legal debt settlement options, this legal provision has a number of benefits. For one, debtors do not lose their property. Secondly, it helps debtors to have a huge chunk of their outstanding debts written off. Thirdly, it makes it possible for consumers to continue living their life normally and at the same time get rid of their bad debts. Lastly, it is the best option for creditors to recover most of their debts.
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When you are looking for the facts about a Chapter 13 Monterey residents are invited to visit are web pages online today. Additional details are available at http://centralcoastbankruptcy.com now.
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