Bankruptcy essentially refers to the process where businesses, as well as individuals are allowed to repay part or all of their debts but with protection guaranteed by the federal court on bankruptcy. Bankruptcies may nevertheless be classified in two categories, liquidation and reorganization bankruptcies. When bankruptcy is deemed a right option for a person, they will need to choose the category that most suits them. With Chapter 13 Monterey, a person will retain their assets even under a declaration of being bankrupt.
Chapter 13 is the reorganization or wage earner bankruptcy while chapter seven is the liquidation bankruptcy. However, not everyone can file for reorganization. This form of bankruptcy cannot be applied for by corporations or sole proprietorships. This is because in this form of bankruptcy you need to be in a position to make payments. There is also the limit on how much debt you need to have so as to file for this bankruptcy.
To qualify for chapter 13 you need to meet some criteria. One of the requirement is that you must not be a business entity. This option is for individuals or those filing jointly like a husband and a wife. For example, businesses such as limited companies and corporations are not eligible for reorganization bankruptcy. Although a business owner cannot file for bankruptcy in the name of his or her business, the debtors can apply in their name for those debts they are liable for.
Another requirement is that you must not be prevented by a prior bankruptcy. If the debtor discharged the debt within the past two years under reorganization or within the past four years under liquidation, such a debtor is not eligible for reorganization until the time has elapsed.
Again, you may not file for such a bankruptcy if an earlier bankruptcy request was dismissed in the last 6 months for some reasons. The first reason pertains to debtors willfully not following court procedures or did failing to appear before a court. The other reason pertains to a debtor seeking for dismissals following the requests by creditors to have a cancellation of the automatic stay.
One other need is that a debtor needs to have some steady earning that will sufficiently repay their debts after deducting any allowable expenses. Usually, debtors have to attach the earnings of their husbands or wives suppose they are employed and this applies even when the bankruptcy was under a joint application. Chapter 13 qualifications additionally require debtors to be adequately earning to permit any mandatory repayment to their creditors if the debts are unsecured.
There are a number of benefits of filing for such bankruptcies. First, it offers an opportunity to saving your property from foreclosure. Filing for these bankruptcies will stop any scheduled foreclosures hence a person may pay their owed overdue mortgages over time. Nonetheless, debtors have to make pay the mortgages on a timely basis under this kind of bankruptcy.
Another benefit is that the debtor can be able to reschedule secured debts and extend them for the entire life of reorganization plan. However, mortgage for the primary residence may not be rescheduled. Rescheduling of the debts may lower the payments.
Chapter 13 is the reorganization or wage earner bankruptcy while chapter seven is the liquidation bankruptcy. However, not everyone can file for reorganization. This form of bankruptcy cannot be applied for by corporations or sole proprietorships. This is because in this form of bankruptcy you need to be in a position to make payments. There is also the limit on how much debt you need to have so as to file for this bankruptcy.
To qualify for chapter 13 you need to meet some criteria. One of the requirement is that you must not be a business entity. This option is for individuals or those filing jointly like a husband and a wife. For example, businesses such as limited companies and corporations are not eligible for reorganization bankruptcy. Although a business owner cannot file for bankruptcy in the name of his or her business, the debtors can apply in their name for those debts they are liable for.
Another requirement is that you must not be prevented by a prior bankruptcy. If the debtor discharged the debt within the past two years under reorganization or within the past four years under liquidation, such a debtor is not eligible for reorganization until the time has elapsed.
Again, you may not file for such a bankruptcy if an earlier bankruptcy request was dismissed in the last 6 months for some reasons. The first reason pertains to debtors willfully not following court procedures or did failing to appear before a court. The other reason pertains to a debtor seeking for dismissals following the requests by creditors to have a cancellation of the automatic stay.
One other need is that a debtor needs to have some steady earning that will sufficiently repay their debts after deducting any allowable expenses. Usually, debtors have to attach the earnings of their husbands or wives suppose they are employed and this applies even when the bankruptcy was under a joint application. Chapter 13 qualifications additionally require debtors to be adequately earning to permit any mandatory repayment to their creditors if the debts are unsecured.
There are a number of benefits of filing for such bankruptcies. First, it offers an opportunity to saving your property from foreclosure. Filing for these bankruptcies will stop any scheduled foreclosures hence a person may pay their owed overdue mortgages over time. Nonetheless, debtors have to make pay the mortgages on a timely basis under this kind of bankruptcy.
Another benefit is that the debtor can be able to reschedule secured debts and extend them for the entire life of reorganization plan. However, mortgage for the primary residence may not be rescheduled. Rescheduling of the debts may lower the payments.
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