Chapter 13 Bankruptcy Rules - The Vital Facts and Truth

April 15, 2010 - PRLog -- The chapter 13 bankruptcy is also known as wage earner’s plan, as it enables to set up terms for repaying out of the debtor’s net income. The personal bankruptcy attorneys or the debtor approaches the court for paying payments in installments on the amounts due with creditors who propose a repayment plan.  This term is of generally three to five years and the collection cannot be started or continued by the creditors during the time of court’s protection or automatic stay. Know details of chapter 7 and chapter 13 of bankruptcy at www.bankruptcyonly.com. The advantages and eligibility of chapter 13 bankruptcy rules are listed below.

Advantages

•   It gives people a chance to avoid foreclosure. The procedure of foreclosure can be stopped and the respective mortgage payments can be paid while even paying the present mortgage payments on time. Secured debts like car loans can be rescheduled and can be extended over the life span of chapter 13 plans of repayments. This can sometimes also result in lower payments. There is also a specific provision that helps co signers to construct on to a code. Chapter 13 is similar to bill consolidation loan. You forward the payment to trustee and the payment is distributed amongst the creditors. Hence, there is an advantage to chapter 13 bankruptcy verses chapter 7.

Eligibility

•   All individuals are qualified for this chapter. Even those who are self employed. There is a limit of $336,900 for unsecured debts and the secured debts should be lower than $1,010,650, and these are timely changed because of changes of consumer price index.
•   You are not allowed to file a bankruptcy if you already have got a past bankruptcy petition dismissed because of failure to follow the court orders or failure to appear or dismissed voluntarily in the past 180 days.

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The process starts by filing a petition in the bankruptcy court of the country where the debtor is located. This includes forms of liabilities, assets, present income and expenditures, leases and contract schedules and a statement of financial affairs and a certificate of bankruptcy credit counseling along with any other repayments. The borrower should also give the chapter 13-bankruptcy trustee with tax return copies of recent period and present copies filed during the case. Husband wife can file a joint or separate petition. You can know more details online. To download the forms you can make use of internet.

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