Basically, bankruptcy is a process that allows businesses or individuals to repay all or part of their debts under the protection from the federal bankruptcy court. Bankruptcies can, however, be divided into two, the reorganization and liquidation bankruptcies. If bankruptcy is the right option for you, you will have to decide the type that is most beneficial. Through Chapter 13 Monterey, you retain your assets while declaring bankruptcy.
Chapter 13 is used in reference to reorganization bankruptcies while liquidation bankruptcies are termed as chapter seven. On the other hand, not all individuals are allowed to apply for reorganizations. For instance, corporations or even proprietors may not apply. This is since under the reorganization forms of bankruptcies, the individuals declared bankrupt must be at a position of making repayments. In addition, there is always a stipulated amount of debt that an individual has to owe so that they can be able to make applications for the reorganizational bankruptcies.
To qualify for chapter 13 you need to meet some criteria. One of the requirement is that you must not be a business entity. This option is for individuals or those filing jointly like a husband and a wife. For example, businesses such as limited companies and corporations are not eligible for reorganization bankruptcy. Although a business owner cannot file for bankruptcy in the name of his or her business, the debtors can apply in their name for those debts they are liable for.
Another requirement is that you must not be prevented by a prior bankruptcy. If the debtor discharged the debt within the past two years under reorganization or within the past four years under liquidation, such a debtor is not eligible for reorganization until the time has elapsed.
Again, you may not file for such a bankruptcy if an earlier bankruptcy request was dismissed in the last 6 months for some reasons. The first reason pertains to debtors willfully not following court procedures or did failing to appear before a court. The other reason pertains to a debtor seeking for dismissals following the requests by creditors to have a cancellation of the automatic stay.
One other need is that a debtor needs to have some steady earning that will sufficiently repay their debts after deducting any allowable expenses. Usually, debtors have to attach the earnings of their husbands or wives suppose they are employed and this applies even when the bankruptcy was under a joint application. Chapter 13 qualifications additionally require debtors to be adequately earning to permit any mandatory repayment to their creditors if the debts are unsecured.
There are advantages for filing for reorganization bankruptcy. One advantage is that it gives the debtor an opportunity for saving their property or homes from foreclosure. By filing for this form of bankruptcy you can stop foreclosure proceedings and you can also cure overdue mortgage payment over time. However, the debtor must make the mortgage payments on time as they become due under the reorganization option.
The other gain is that you can re-plan and spread the repayment of secured debts. Nonetheless, this re-scheduling is limited to secondary mortgage owners and not for the primary possessors. Rescheduling of debts may additionally lessen the amount to be repaid.
Chapter 13 is used in reference to reorganization bankruptcies while liquidation bankruptcies are termed as chapter seven. On the other hand, not all individuals are allowed to apply for reorganizations. For instance, corporations or even proprietors may not apply. This is since under the reorganization forms of bankruptcies, the individuals declared bankrupt must be at a position of making repayments. In addition, there is always a stipulated amount of debt that an individual has to owe so that they can be able to make applications for the reorganizational bankruptcies.
To qualify for chapter 13 you need to meet some criteria. One of the requirement is that you must not be a business entity. This option is for individuals or those filing jointly like a husband and a wife. For example, businesses such as limited companies and corporations are not eligible for reorganization bankruptcy. Although a business owner cannot file for bankruptcy in the name of his or her business, the debtors can apply in their name for those debts they are liable for.
Another requirement is that you must not be prevented by a prior bankruptcy. If the debtor discharged the debt within the past two years under reorganization or within the past four years under liquidation, such a debtor is not eligible for reorganization until the time has elapsed.
Again, you may not file for such a bankruptcy if an earlier bankruptcy request was dismissed in the last 6 months for some reasons. The first reason pertains to debtors willfully not following court procedures or did failing to appear before a court. The other reason pertains to a debtor seeking for dismissals following the requests by creditors to have a cancellation of the automatic stay.
One other need is that a debtor needs to have some steady earning that will sufficiently repay their debts after deducting any allowable expenses. Usually, debtors have to attach the earnings of their husbands or wives suppose they are employed and this applies even when the bankruptcy was under a joint application. Chapter 13 qualifications additionally require debtors to be adequately earning to permit any mandatory repayment to their creditors if the debts are unsecured.
There are advantages for filing for reorganization bankruptcy. One advantage is that it gives the debtor an opportunity for saving their property or homes from foreclosure. By filing for this form of bankruptcy you can stop foreclosure proceedings and you can also cure overdue mortgage payment over time. However, the debtor must make the mortgage payments on time as they become due under the reorganization option.
The other gain is that you can re-plan and spread the repayment of secured debts. Nonetheless, this re-scheduling is limited to secondary mortgage owners and not for the primary possessors. Rescheduling of debts may additionally lessen the amount to be repaid.
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