Features and Process of Filing Chapter 13 Moreno Valley
Most individuals think that the bankruptcy court is the final stop to financial loss. There is something to look forward to in bankruptcy, and that is what Chapter 13 of the federal bankruptcy code offers. It is the nearest thing to have a soft landing. In chapter 13, those individuals who have enough income can repay a part or all of their debts. It is suitable for those people whose dealing with difficult creditors that ask for fast payment. One of the best features of Chapter 13 is the borrower can keep his house as long as he can deal with the mortgage under a settlement plan. Individuals are given three to five years to pay their debts while making each of their disposable income to debt reduction. It allows the borrower to remove unsecured debts while catching up on unpaid mortgage payments. Keeping the house from foreclosure is also a benefit for filing chapter 13 which gives a major relief for property owners. However, the condition is the debtor must spend years living under the court-appointed trustee’s supervision who will collect payments and distribute it to creditors.
- The first step for filing chapter 13 bankruptcy is finding a bankruptcy attorney. He must provide a free evaluation and estimate to file. The filing cost consists of filing fees and the professional fee of the bankruptcy attorney. Applicants must pay a filing fee to the bankruptcy court, the miscellaneous administrative fee.
- The applicant must provide the list of creditors and the sum of their claims, debtor’s income including the amount and its sources.
- Next is the list of the assets owned by the debtor including all contracts and leases under his name.
- He must also provide the breakdown of his monthly living expenses and the tax information to his bankruptcy lawyer.
- The tax information must include the copy of the borrower’s latest statement of any unpaid taxes and federal tax return.