In a nutshell, Chapter 13 bankruptcy is typically utilized by individuals attempting to avoid foreclosure on their property. In many of these instances, the people's ability to pay all of their bills and their mortgage payment is stifled by their massive unsecured debts. The only reason a Chapter 13 payment plan is impractical is because the debtor took off more than they could chew when establishing it with their bankruptcy attorney. Chapter 13 bankruptcy provides the debtor with a great deal of flexibility to modify the payment plan if they discover they cannot afford it. The last thing a bankruptcy court desires is for a debtor to fail.
I believe that many online stories are miscommunicated, with the debtor lamenting because things did not go as planned. The ability to modify a mortgage is something Congress has not included in a bankruptcy filing. Some individuals have spent more on their house than they can afford. If a person's mortgage is excessively high, he or she should consider leaving it go in bankruptcy and possibly filing Chapter 7 to eliminate all unsecured debt. If the first trust deed is manageable, but the second and third, along with a vehicle loan and credit card debt, are preventing the debtor from making ends meet at the end of the month, Chapter 13 bankruptcy may be the prescription.
In Chapter 13 bankruptcy, secured debts and court-ordered payments are paid before unsecured debts. Having unsecured debts, such as signature loans and credit cards, at the bottom of the list. As a result of the significant decline in property values throughout the United States, the value of many people's homes is less than what they owe on them. If the value of the property has fallen below the amount of the first trust deed, the debtor may remove the second and third trust deeds, rendering them unsecured and non-priority claims. During the 3 to 5 year payment plan, the Chapter 13 trustee pays creditors according to their priority. If the amount of payments to secured debts is considerable, the unsecured debts are frequently paid only a nominal amount, with the remainder being discharged at the conclusion of the bankruptcy filing.
Do not believe everything you read online, particularly blogs. When things do not go as planned, people publish biased articles that do not present both sides of the story. If you're serious about declaring bankruptcy, don't spend a lot of time perusing articles; instead, consult a bankruptcy attorney to determine if there are any benefits for your specific situation.""
" - https://www.affordablecebu.com/
