In reality, the Bankruptcy Chapter 13 Code offers numerous advantages over the Bankruptcy Chapter 7 Code. In Bankruptcy Chapter 13, unlike Chapter 7, the individual can at least prevent the foreclosure of his home and other assets. After he files for Chapter 13, all proceedings will be halted and he will be given between three and five years to repay his debts. Chapter 13 of the Bankruptcy Code permits the reallocation of secured debts. It can, over time, reduce the payments he is required to make. Finally, once the debtor has filed for chapter 13 bankruptcy, he or she will have no contact or communication with creditors.
Now let's examine the eligibility requirements for filing Chapter 13 bankruptcy. Any individual, whether self-employed or employed, can petition for protection under chapter 13 bankruptcy. The only condition is that his unsecured debts be less than $336,900 and his secured debts be less than $1,010,650. And no business or organization may seek assistance or file Chapter 13 bankruptcy. In addition, if a person's bankruptcy petition was dismissed within the previous 180 days, he cannot file under chapter 13 or any other code.
The operation of the chapter 13 bankruptcy code essentially begins with the submission of the case in the federal court indicating the debtor's residence. The debtor must provide documentation of his current income and expenditures, liabilities, outstanding leases, and financial standing. In addition, he or she must provide a certificate from an approved credit counselor stating that he or she has completed credit counseling and a copy of the debt repayment plan.
Also payable in installments are the predetermined fees for registering a case under chapter 13 of the bankruptcy code. As soon as the bankruptcy code is filed, all collections against the debtor are immediately halted. If the debtor pays his chapter 13 obligations on time, he will not lose his home; otherwise, he may lose his home for mortgage payments. Within fifty days, the trustee convenes a meeting with the debtor's creditors and asks the debtor several questions. And a feasible plan for the debtor to repay his loans is formulated.
The debtor must adhere to the repayment plan, and if he fails to make regular payments, the federal court has the right to dismiss the case and convert it to a chapter 7 liquidation case, as stated in the bankruptcy code. Therefore, once a person files for Chapter 13 bankruptcy, he must adhere to the repayment plan and make payments on time so that he can resolve his financial crisis without difficulty. In general, this is how a Chapter 13 bankruptcy proceeding is conducted in federal court.""
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