Bankruptcy is a common scenario in the US and if you or someone in your friends and family are going to go through the similar process, then knowing what it is about is a good idea. Usually, the two most common repayment plans people fall under include the Chapter 7 repayment plan and Chapter 13 repayment plan, and a number of people get confused between these. In this article you will understand what exactly Chapter 13 bankruptcy plan is.
The chapter 13 bankruptcy programs are completely based on the Chapter 13 bankruptcy case and they basically lay out as to how the duration of the repayment plan, the amount the creditor will get paid under this plan, the value which the debtorâ€™s property will be off and other specifications. Once you have registered for the plan, before anything is taken forward the bankruptcy court looks into the case to check if it is genuine or not and then confirms for proceeding. A number of factors and aspects are open to objection from the trustees and the creditors. There are various things which you must understand to get the hang of what this plan is all about and these factors include your obligations, the number of debts to be paid each month, how does the hearing of the plan confirmation takes place, and the options that you have to complete the program.
This repayment plan also begins in a similar way as the Chapter 7 plan as here also you need to fill out forms where you specify the details of your income, property, expenses and debts. These forms need to be filed in the bankruptcy court, which then looks into the matter after you have also filed a workable repayment plan showing the court that you have a plan to repay the debts over a set period of time. The other requirements for this plan include the certificates for income tax returns of the past four years and a certificate of credit counselling from an affiliated agency. Generally, the plan of payments is a monthly process and the debts are supposed to be paid to the trustee who is a person appointed by the court to deal with your case. This trustee is a court official who will in turn pay the amount to your creditors and take the specified statutory commission based on the payable amount. The main aspect of this plan is that if you have to complete all the payments of debts on time so that the plan is completed.
Usually, the length of the repayment plan is fixed with regards to your income level and depending on the different income specifications, three year and five year plans are taken up for the repayment. This is taken with the help of the median income in the United States. Also, an important factor in a Chapter 13 bankruptcy plan is that unlike the Chapter 7 plan you can retain your property and debts are paid from the income. In exchange of this, you have to pay your debtors the value of nonexempt property. These are a few important specifications in relation to the Chapter 13 bankruptcy plan.
This post is shared by Attorneyforbankruptcy.com, which a leading law firm of California. Here you can have detailed information on california chapter 13 bankruptcy attorney and bankruptcy attorney san jose ca.