What’s The Latest Chapter 13 Bankruptcy Information?
By Stephanie Robins on March 25, 2010, 6:03 am Posted in Finance NewsWhen the changes were made a few years back to Bankruptcy laws, Chapter 13 seemed to be where most people landed after taking the Means Test. However, this has changed in more recent times. Chapter 13 Bankruptcy requires the person filing to a strict repayment plan that is intended to pay off the debt. After a person files the plan the bankruptcy court reviews the debts versus the income. This chapter generally allows for a repayment plan ranging from three to five year and this is based on the overall debt and income.
The Chapter 13 Bankruptcy Might Have Monthly Charges Changed
When you enter into the agreement with the court you will be required to provide the court a copy of your income tax return. If your income has decreased it might be possible to lower your monthly payment to the court. However, if you have an increased amount of income your monthly payment may increase.
Your Creditors Can Reject Your Proposal
When your payment plan is presented the creditors are each allowed the opportunity to reject the plan. If you ask for a reduction in the monthly payment plan, perhaps two years after you have been paying, the creditors may hesitate to accept an amount less than what was originally proposed. If negotiations cannot be arranged between the two parties then the case may be dismissed. If it is not dismissed it may be changed to a Chapter 7. Creditors do not like the Chapter 7 possibility as they know they will not receive any future payments. Instead, the creditors usually try to compromise with the person.
Chapter 13 Allows Individuals To Save Their Home
This chapter allows an individual to save their home from foreclosure. However, they still must meet the monthly mortgage payments. The filing party must still remain current on all of the other monthly obligations.
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