Pre-Filing Requirements For Chapter 13 Bankruptcy
Filing bankruptcy is always a complex and stressful procedure that should be both well considered and well prepared. If your bills have become insurmountable and you need to file chapter 13 bankruptcy, you should be aware of the fact that there are a number of mandatory requirements you must meet before filing bankruptcy. Failure to meet these requirements will result in the court refusing your chapter 13 bankruptcy. It is evident that meeting these mandatory requirements before filing bankruptcy is the first important step on the journey to what will be, if all goes well, a clear financial future. So what are these mandatory requirements exactly?
The first thing every consumer must do before filing bankruptcy is take a credit counseling class at a government-approved credit counseling agency. This class must be taken within 180 days prior to filing bankruptcy. It is vital that you file the certificate of compliance that attests you have, in fact, completed the credit counseling class. If you are unable to take the class within the determined time period, you may be able to file for an extension, but only if you can prove you tried to obtain the class within the last five days before filing bankruptcy. If an extension is granted, you must take the class and file the certification within 30 days after filing bankruptcy.
The second requirement you must meet before filing bankruptcy is to take the so-called means test. This means test is key in determining whether you need to file chapter 7 or chapter 13 bankruptcy. The means test examines your income level against a state-determined median, and determines the amount of disposable income you have which may or may not be sufficient, when filing bankruptcy, to support the repayment plan included in a chapter 13 bankruptcy. Because the median income differs from state to state, the income level associated with a chapter 13 bankruptcy also differs from state to state. A third requirement you must meet before filing chapter 13 bankruptcy is that you avow all documentation and information submitted to the court is well grounded in fact, and warranted by existing law or a good faith argument for the modification of the existing law. If you are filing chapter 13 bankruptcy this means that you declare to know and understand the chapter 13 bankruptcy laws that apply when filing bankruptcy. If you claim ignorance of the chapter 13 bankruptcy laws at any point during your chapter 13 bankruptcy filing, it will not count as an excuse. Due to this pre-required knowledge of chapter 13 bankruptcy law, it is always in your best interest to retain the services of an experienced chapter 13 bankruptcy lawyer before filing bankruptcy.
Questions and Answers
Bankruptcy law imposes three requirements on a borrower applying for a hardship discharge. First, the debtor's failure to complete the payment plan must be due to circumstances beyond the debtor's control and through no fault of the debtor. Secondly, the bankruptcy law requires that the creditors have already received at least as much as they would have received if the applicant filed for a chapter 7 bankruptcy instead.
Bankruptcy law can be very confusing and intimidating. If you are considering seeking bankruptcy protection you should contact an experienced Tampa bankruptcy lawyer for legal advice. A Tampa bankruptcy attorney can answer your questions and provide you with sound legal advice.
The payment plan details how the money the borrower collects will be used to pay off the debts outstanding. Normally, a borrower must begin submitting payments as defined in the chapter 13 payment plan within 30 days of submitting the plan. A chapter 13 payment plan may be accepted or rejected by a creditor whose debt owed by the borrower is part of the bankruptcy proceedings. In addition, a party of interest could also object to the chapter 13 payment plan.
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Kenneth Lenz, Board Certified Consumer Bankruptcy Attorney. After serving 3 years in the U.S. Army, Kenneth Lenz attended school at the America International College in Massachusetts.
Bankruptcy law involves a legal procedure that allows a person, who is unable to clear his debts, to get pay his creditors through proper distribution of his non-exempt assets.
Students from both private and public universities all over the country may also provide low cost or free advice. The sessions will only achieve directing clients to the right legal path in filing the right papers. Note that with the new bankruptcy laws taking into effect making the bankruptcy filing process more difficult than usual, an experienced bankruptcy attorney will be worth your money.
Many people who enter the bankruptcy process worry about the fate of their credit. This is actually unnecessary as the bulk of credit damage happens before the bankruptcy process is even initiated. While no one wants the added hassle of rebuilding their credit after resolving debt troubles, doing so can put you leaps ahead of others in the credit game.
Americans are now filing Chapter 7 or 13 Bankruptcy to get their debts under control. Bankruptcy in itself is designed for debt elimination. Chapter 7 bankruptcy functions to cancel out unsecured debt such as utility or medical bills, credit card, etc. Chapter 13 Bankruptcy on the other hand is designed to give individuals more time in repaying all their debts.
Filing for bankruptcy is good news whenever you are struggling with your credit card debt, mortgage or medical bills. Bankruptcy laws help families and individuals in their debt struggles. You have two options on how to deal with your debt problems, Chapter 7 (debt elimination) and Chapter 13 (reorganization). Always remember that you can regain credit again after successfully filing your bankruptcy.
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If you need to apply for debt settlement to settle your medical bills and avoid medical bills bankruptcy, it is good to know that there are many experienced and reputable debt settlement companies throughout the United States that can help you avoid medical bills bankruptcy.
The myths and misconceptions surrounding personal bankruptcy prevent many people who are in dire need of debt relief from filing bankruptcy.Here's how bankruptcy affects your credit. Here are some of the most popular myths about bankruptcy, and explain what the reality is about bankruptcy.Read on to learn the truth about filing bankruptcy.
Bankruptcy is formally declared inability or impairment of ability of an individual or organization to pay its creditors. On the odd occasions bankruptcy is obvious but it can be avoided with smart financial management. Smart financial management primarily consists of avoiding unnecessary everyday expenditure, monthly financial plan and a few more points as discussed below.
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