What is the gist of Chapter 13 Bankruptcy?
What is the gist of Chapter 13 Bankruptcy?
If you file for Chapter 13 bankruptcy, you are required to submit a plan to repay your debts. This plan outlines your monthly income, and expenses, as well as any assets you own. The court will appoint a trustee to oversee the repayment plan, which will include payments to your creditors. You will also be required to make payments to the trustee on a regular basis, based on your income and expenses.
The court will review your plan and will decide whether it will meet your needs. Once approved, your bankruptcy trustee will distribute the payment among your creditors. If you owe money to a secured creditor, they may be able to repossess your assets to get the money they demand. In contrast, unsecured debts have no collateral and are not backed by anything. In either case, the creditor can file a motion to get the money back from you.
Chapter 13 is a repayment plan designed to help those who are working but cannot keep up with their payments. Once the petition is filed, creditors must stop contacting you or suing you, garnishing your wages, or harassing you. Chapter 13 is a great option for people who are behind on their car or house payments. It can save your property from repossession and foreclosure, and it will also protect any co-signers.
Another important benefit of a chapter 13 bankruptcy is that it allows you time to get your financial act together. You'll have at least three to five years to repay your debts, and in many cases, it can stop foreclosure proceedings. You'll still be responsible for the rest of your debts after the bankruptcy court rules, but you'll have a better financial situation after completing your chapter 13 repayment plan.
If you have any questions or in need a Chapter 13 Bankruptcy Attorney, we have the Best Attorneys in Utah. Please call this law firm for free consultation.
Ascent Law LLC
8833 S Redwood Road Suite C
West Jordan UT 84088
(801) 676-5506
