Chapter 13 Bankruptcy questions and answers

6. APR 2011 Jackie Lynn

Chapter 13 Bankruptcy questions and answers freepixels.com-

What is a chapter 13 Bankruptcy?

Chapter 13 bankruptcy is commonly referred to as the "restructuring" of the bankrupt. This type of bankruptcy is usually done for the people who make their entry on the State median, or if they have too much money to keep a typical Chapter 7 liquidation case. It requires at least to the debtors and the most affordable monthly payments to the Court for three to five years from the date on which the trust relationship, sometimes less.

Why does the number 13?

The number of people from many different causes, 13, and chapter 13 may put to many uses. If you have fallen, mortgage payments, the number 13 is not in a position to provide legal protection and Allow any "rästiin" the mortgage payments. Chapter 13 allows debtors to "restructure" their debt. Chapter 13 case is in operation all of the interest to be unsecured promissory note invoice that is selected in the drop-down list box, which allows you to carry out the principle of balance of payments of the debt in% 0. In some cases, the debtor may only pay back a percentage of their total unsecured debt instruments, such as $. 10 dollars or total debt forgiveness is currently working with rest of 10%.

What other benefits are there?

Chapter 13 is also what is called "lien Strip" and the "cram" principles. These are complex legal issues, which you can discuss your own attorney, but basically, if you have a second mortgage your House, which is totally unsecured (your House is worth less than what you owe at the end of the first mortgage) that a second mortgage can be "removed" or is disabled, your house number 13, during the service call. There is also an opportunity to "cram" the buy more than 910 days before the file is located on the vehicle. This means that if you own a car, the value of only $ 10,000 in the fair value, and you can still owe $ 15,000 car loan, the loan can be "crammed on"-only $ 10 000 in the case of Chapter 13.

How does this affect my credit?

Bankruptcy may be the individual's credit report for 7-10 years. Bankruptcy, however, is very common. Chapter 13 bankruptcy may look better on your credit report than a chapter 7 liquidation, chapter 13, as your creditors have received some amount of the levy. Ask your attorney to bring a Credit Score as quickly as possible, when the bankruptcy case is more than that.

What would happen if the do not bankruptcy 25.4.1997?

If you try to save your House in case of Chapter 13 bankruptcy, closing the file of the case before the sale. Chapter 13 bankruptcy case, the closing of the sale of the "stop", through what is called the "automatic stay". The automatic stay stops the operation of its own collection of all the creditors. If you quit, the conclusion of the chapter 13 plan payments, bankruptcy, creditors continue to collection activity, including but not limited to the vaikeuttamalla home.

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