A number of debt settlement options have been formulated over the years, but the oldest and most popular is bankruptcy. There are several provisions in the bankruptcy act, but chapters 13 and 7 affect individual consumers directly. In fact, they were devised with the average person in mind. While these provisions can help consumers to get rid of their outstanding debts, they also come with some negative effects. It is important for consumers to learn about these repercussions when considering 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.
It is important to note that while this option allows debtors to keep their assets, defaulting on payments will lead to automatic liquidation of assets. The bankruptcy trustee will automatically liquidate the non exempt assets of the consumer and recover funds to offset their debts. It is, therefore, in the best interest of the applicant to make regular payments as expected to the trustee.
After filing the necessary paperwork in court, the applicant is required to draft a plan to repay the debt in question. The plan should include the total monthly income, expenses and what the debtor is able to pay every month towards servicing their debt. The plan must then be presented to the committee of creditors who will ask questions, which the debtor must answer.
To qualify for this type of bankruptcy, a person must have a steady job with a decent income and few valuable assets. The argument is that making monthly payments will help creditors recover more money than they would if the assets of the debtor were liquidated. The trustee is the one who will ensure the debtor qualifies for this option.
The plan proposed by the consumer must be presented to creditors in a meeting arranged by the trustee. The consumer will be required to answer questions regarding the plan before creditors vote on it. It is important to note, however, that the court has the last say regarding the plan, so it can still be approved after creditors reject it.
After a person is declared bankrupt, the law prohibits creditors from making any form of communication with the consumer. Any communication must be handled through the trustee. This means no house visits, phone calls, emails or fax from creditors to the bankrupt consumer. The trustee will also handle all payments that are received from the consumer.
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.
It is important to note that while this option allows debtors to keep their assets, defaulting on payments will lead to automatic liquidation of assets. The bankruptcy trustee will automatically liquidate the non exempt assets of the consumer and recover funds to offset their debts. It is, therefore, in the best interest of the applicant to make regular payments as expected to the trustee.
After filing the necessary paperwork in court, the applicant is required to draft a plan to repay the debt in question. The plan should include the total monthly income, expenses and what the debtor is able to pay every month towards servicing their debt. The plan must then be presented to the committee of creditors who will ask questions, which the debtor must answer.
To qualify for this type of bankruptcy, a person must have a steady job with a decent income and few valuable assets. The argument is that making monthly payments will help creditors recover more money than they would if the assets of the debtor were liquidated. The trustee is the one who will ensure the debtor qualifies for this option.
The plan proposed by the consumer must be presented to creditors in a meeting arranged by the trustee. The consumer will be required to answer questions regarding the plan before creditors vote on it. It is important to note, however, that the court has the last say regarding the plan, so it can still be approved after creditors reject it.
After a person is declared bankrupt, the law prohibits creditors from making any form of communication with the consumer. Any communication must be handled through the trustee. This means no house visits, phone calls, emails or fax from creditors to the bankrupt consumer. The trustee will also handle all payments that are received from the consumer.
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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