How does Chapter 13 bankruptcy work?
Each
state is unique in how it administers Chapter 13 of the United States Bankruptcy
Code. Chapter 13 bankruptcy may be the best option if you have a steady income
and want to keep your property but have too much debt. A Chapter 13 bankruptcy
is designed to give you a fresh start by creating a repayment plan that allows
you to pay back some or all of your debts over time. This lets you get out of
debt while keeping your property, such as your car or house. This can be useful
if you have too much debt. A Chapter 13 bankruptcy is also called a wage
earner's plan because it requires that you send the majority of your paycheck
to the court on a regular basis. After the court reviews your repayment plan,
any money left over after paying for basic necessities will go toward paying
back creditors. If you are approved by the court and follow the terms of your repayment plan, your debts will eventually be discharged or erased.
Chapter 13 bankruptcy is a bit of an oddball. It's designed for people
who have a steady income and tons of debt, but it actually gives them a way to
keep their assets and even pay down most of the debt in the long run. Debtors
who file this type of bankruptcy have to, typically, make three payments every month for three years. In these payments, they're dividing their debts into
three categories: 1) secured debts (like a car loan or mortgage), 2) priority debts (like student loans), and 3) unsecured debts (like credit card debt). The
first two categories are paid back in full. The third category is paid back at
10% of whatever's left over after the first two categories are paid off. Call
this law firm if you need help with a chapter 13 bankruptcy in Utah.
Ascent Law LLC
8833 S Redwood Rd Ste C
West Jordan UT 84088
(801) 676-5506
https://www.ascentlawfirm.com/chapter-13-bankruptcy-utah/
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