Seek Legal Advice About The Various Conditions For Filing Chapter Thirteen Bankruptcy
When a person files for bankruptcy, it means entering a legal process whereby debt can be eliminated under the jurisdiction of a court of law, and the main purpose of doing so is to get relief from not being able to pay off debts, either wholly or partially, and which will give a person a fresh lease of life to begin with their finances once more on a clean sheet again. Thus, before filing for chapter thirteen bankruptcy, a person need to know about the conditions for filing chapter thirteen bankruptcy in which there is an expression of intent to pay back debts within a period of time that could be anywhere from three or five years. Such a form of bankruptcy is well liked by most people because they can still maintain their lifestyles and at the same time pay back their debts.
Present Petition For Bankruptcy
Perhaps the most common conditions for filing chapter thirteen bankruptcy is to present the court with a petition for bankruptcy and to also list liabilities and also assets, after which there is a need to draw up a plan for repaying the debt and also stating the period of time in which the debt will be paid off. Next, among the conditions for filing chapter thirteen bankruptcy is that both the debtor and the creditor need to evaluate the plans for repayment and come to an agreement about how the debt is to be repaid, and then both parties must stick to this plan of reorganization of debt.
In addition, there are also other conditions for filing chapter thirteen bankruptcy that include some more confirmation tests that have to be dealt with before the bankruptcy can be reorganized and these tests will compare amounts that unsecured creditors receive in accordance with the reorganization plan, and how much they would have received under chapter seven bankruptcy. This test will ensure that both clauses for bankruptcy are on even terms and the interests of creditors are safeguarded in either instance. Finally, the tests will also look at the capability of the debtor to meet his or her debts.
The conditions for filing chapter thirteen bankruptcy make it possible for a debtor to hold on to his or her possessions including the home, and even if a mortgage payment is missed, under the conditions for filing chapter thirteen bankruptcy, it can still mean forestalling declaration of foreclosure and giving the debtor time to make up on the missed payments.
For more advice about various conditions for filing chapter thirteen bankruptcy, it is best to ask a bankruptcy lawyer that is well experienced in such cases, though it must be said that filing for this type of bankruptcy should only be done when the conditions for filing chapter thirteen bankruptcy are so severe as to preclude any other form of bankruptcy, because once you choose this option, your credit will suffer and will be on the records for almost ten years, which will severely hamper the chances of obtaining fresh credit in the years to come.