The purpose of bankruptcy is to distribute non-exempt assets to creditors as equitably as feasible. Chapter 13 bankruptcy is one of the two most prevalent bankruptcy options available.
Chapter 13 bankruptcy is the best option for those who wish to repay their debts while preventing creditors from pursuing debt collection. If a debtor is eligible to register under this code, this option affords him the opportunity to regain his financial stability and provides him with a range of repayment options.
Under Chapter 13 of the bankruptcy code, debts are restructured so that a delinquent can repay his debts with whatever income source he has. It applies to individuals who have a sufficient income and are eligible to apply for adjustments.
Within 15 days of registering for chapter 13 bankruptcy, a debtor must choose a repayment plan. After that, he must attend all subsequent crucial creditor meetings. As soon as the court authorizes your repayment plan, the bankruptcy procedure will commence.
Consider the primary benefits of a Chapter 13 bankruptcy.
Court protection - Once a debtor has filed for chapter 13 bankruptcy, the court will grant him protection from debt collectors and creditors. Therefore, it is illegal to contact a debtor after his chapter 13 petition has been granted.
This bankruptcy option eliminates the majority of unsecured debt. However, secured obligations cannot be discharged absent a repossession shortfall.
This alternative permits for the restructuring of debts. This appeases a long-suffering debtor who has been struggling with financial issues.
A significant advantage of chapter 13 bankruptcy is that it precludes the possibility of a foreclosure. To eliminate delinquencies, a suitable repayment plan may be implemented.
Are your debts accumulating and you considering filing for Chapter 13 bankruptcy? Miller and Associates, PC provides Riverside residents with access to seasoned and competent legal counsel.
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