Details of Chapter 13 Bankruptcy

Details of Chapter 13 Bankruptcy "Chapter 13 bankruptcy is an individual debt repayment arrangement. It safeguards your home from foreclosure while permitting you to catch up on missed mortgage payments. It is also an option for those who may not qualify for Chapter 7 bankruptcy.Chapter 13 is distinct from Chapter 7, which may enable you to discharge all of your consumer debts. People who do not qualify for Chapter 7 under the new regulations or who wish to preserve their credit rating by restructuring their debts may benefit more from Chapter 13. By filing a case, this debt is reorganized into a single monthly payment. And then this payment is extended over 36 to 60 months.Some qualifications: Chapter 13 is designed for individuals who have a regular source of income and the desire to repay their debts, but are unable to do so at the present time. A judge oversees the adjustment process. And the sum of all unsecured debts must not exceed $269,250. Total secured debts must not exceed $807,750.All proposals that require court approval and contain payment information. Assuming these plans are approved, regular (usually biweekly or monthly) fixed payments are then sent to the trustee. And the trustee distributes these funds to creditors in accordance with the terms of the plan (often for less than the total amount of their claims). Consultation with a certified tax counsel or accountant is recommended.In order to file for bankruptcy, the debtor submits a bankruptcy petition (which is closely related to the Chapter 7 petition), which includes a comprehensive financial statement and a comprehensive inventory of assets and liabilities.Keep in mind that Chapter 13 is only one of several options available to homeowners attempting to avoid foreclosure. If you are concerned about losing your home to foreclosure or having your vehicle repossessed, Chapter 13 can assist.
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