Chapter 13 Salt Lake City Utah
by Jose Thomas
When people think of bankruptcy, chances are that they are thinking of chapter 7 which eliminates the obligation to repay most debts. There however is also chapter 13 repayment plan that comes in handy for individuals who may be late with their house or car payments. The goal of most debtors with this plan will be to save important assets and also get a discharge. When considering <a href="www.bankruptcyutah.com/about">chapter 13 Salt Lake City Utah</a> residents need to be versed with it.
All the bankruptcy cases normally are filed at special courts. In order to start chapter 13 cases, one starts by filing documents which list all their debts, income and assets. Altogether these are referred to as schedules, petition and statement of financial affairs. The information provided needs to be complete and accurate to the knowledge of those affected. The information is signed under penalty of perjury.
The repayment plan will last between 3 to 5 years. The maximum they should last is 5 years. As the case begins, the debtor is supposed to come up with their proposition of the repayment plan. There is classification of the debts according to their security, that is, those that are secured and those that are not. Unsecured debts have no collateral. There is then assignment of priority to each debt.
You will note that debts that are for child support or for taxes are more highly prioritized than for instance credit card debts. Monthly payments under chapter 13 are dependent on a number of factors. The factors include amounts one owes in mortgage arrears, their income and reasonable taxes. In many instances, it is not mandatory to pay all that you owe. If your income is adequate to pay back priority debts but it is not enough to repay others, you do not have to repay the ones that are not priority.
When the case gets filed, it will be assigned to some bankruptcy judge and a trustee. There is the possibility that one will go over the entire process without having to appear in court before a judge. The appointed trustee is the one that oversees the case. The plan payments are made to the trustee who then ensures it gets to the required creditors.
One month after the case is filed, there will be a meeting between you and an attorney, as well as the trustee. This is a meeting of creditors. The funny bit is that creditors will rarely ever attend these meetings. The meeting is a chance for the trustee to clarify questions they may have about your financial situation. Trustees also get to examine the repayment plan to see whether it is feasible.
Five years is a long long time and many things can happen within that period. There may be disruption in payments. The issues that might arise include unemployment, medical problems and divorce. Should it be such that you are not in a position to make repayments, you can have the plan modified. This is best done before it is late.
It will still be possible to obtain credit during the case. Getting a new credit card will need to be through intervention of the court. The credit will have to be for something necessary if it is to be granted.
You can get a summary of important things to consider when choosing a <a href="http://www.bankruptcyutah.com/about">Chapter 13 Salt Lake City Utah</a> attorney at http://www.bankruptcyutah.com/about right now.
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New Unique Article!
Title: Chapter 13 Salt Lake City Utah
Author: Jose Thomas
Email: nathanwebster335@live.com
Keywords: chapter 13 salt lake city Utah
Word Count: 544
Category: Finance
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