Posts Tagged ‘chapter 13 bankruptcy’
Chapter 13 Bankruptcy
September 8th, 2008
What is a Chapter 13 Bankruptcy?
Chapter 13 bankruptcies are also called reorganizations. A Chapter 13 bankruptcy allows the debtor to keep most assets and arranges for partial or full payment of the debts owed over three to five years. Creditors must be paid at least as much as they would have received in a Chapter 7 Bankruptcy situation. The debtor must pay all disposable (not necessary for living essentials) income into the plan. Money is paid to the trustee who then pays the creditors.
What are the benefits of a Chapter 13 Bankruptcy?
The major benefit of a Chapter 13 bankruptcy plan is that it allows the debtor to keep assets that would have to be liquidated in a Chapter 7 Bankruptcy plan. Before filing a chapter 13 bankruptcy, compare the information on Chapter 7 Bankruptcy and chapter 13 bankruptcy, check out the Chapter 7 Bankruptcy vs Chapter 13 Bankruptcy section. In many cases, filing for Chapter 13 bankruptcy is more beneficial than Chapter 7, as suggested by the article 'Chapter 7 and chapter 13 bankruptcy, which is best for me?'.
Other benefits of Chapter 13 bankruptcy plans are that they do include taxes into the bankruptcy plan and that the plan is like a consolidation loan. However, no interest is charged. Interest on your debts stops accumulating on the day you file for Chapter 13 bankruptcy. The amount you owe does not continue to grow through accumulating interest.
How long does a Chapter 13 Bankruptcy stay on the Credit Report?
A Chapter 13 bankruptcy will stay on your Credit Report for ten years.
What to do if I have problems making payments such as mortgage payments?
If you are having problems making mortgage payments or some other types of payments, you would be better off to work with your creditor independently and find a way to catch up on those payments, so that the late or missed payments only affect your Credit Report for seven years.
Creditors are more afraid of bankruptcies on a Credit Report than they are of late payments. Creditors usually do not receive full payment in a bankruptcy, but if the debtor merely falls behind, a profit can still be made.
In general you are better off trying to make your own settlements or payment plans with your creditors than going into a Chapter 13 bankruptcy. Keep filing a bankruptcy (Chapter 7 Bankruptcy or chapter 13 bankruptcy) as a last resort.
How to withdraw bankruptcy filing or stop bankruptcy filing?
If you have already filed for bankruptcy, you may be able to withdraw your bankruptcy petition, depending on where your case is at. You will need to consult with your attorney about this.
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Bankruptcy Part One
May 27th, 2008
What is Bankruptcy?
Bankruptcy is a procedure you can go through in a federal bankruptcy court that allows you to discharge (or get rid of) all or a portion of your debt.
Why is bankruptcy beneficial? What is an automatic stay?
One of the most important and beneficial things about bankruptcy is that the minute you file your petition with the court stating that you are asking to be declared bankrupt, all of your creditors are stopped from any collection attempts. This is called an automatic stay and can do a lot to relieve the tension and mounting panic you feel. This means creditors cannot take your car, garnish your wages, call you about your debt, or try to collect in any way.
What happens whan a bankruptcy is filed?
When a bankruptcy is filed, a trustee is appointed to handle the bankruptcy case. The trustee divides up your assets among your creditors.
Two types of bankruptcies
There are two types of bankruptcies available to consumers: Chapter 7 Bankruptcy and Chapter 13 Bankruptcy.
Requirements for filing bankruptcies
You must reside in a state for 90 days prior to filing for bankruptcy in that state. To file for bankruptcy, you will probably need an attorney who will require that you pay him or her. You must also pay a filing fee with the court. The attorney will complete a Petition for Bankruptcy,which is a very long document that lists your personal information as well as details all of your assets and your debts.
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Chapter 7 and Chapter 13 Bankruptcy, which is best for me?