Many a times, the economic hardships can strike so hard that even the wealthiest individuals find themselves in difficult financial situations. Such instances call for individuals to declare themselves bankrupt. This may be a difficult thing to do since it may affect the future credit and reputation. Nevertheless, the individual will also have to contact a Johnson City chapter 13 attorney to aid in the proceedings.
Chapter 13 legal representatives are mandatory in a bid to enable clients get conversant with various merits and demerits that come with such a decision. The first advantage is that the debtor is given ample time to clear off his or her debts. This lessens the chances of constant harassment by the creditors.
The other good news is that debts have to be paid out of the disposable income. Disposal income is the extra cash an individual has left after catering for all necessities including food, shelter and medical care. An individual will still be able to fulfill critical survival needs. The property that an individual is making partial payments on, in the long run is retained.
A chapter 13 bankruptcy claim however, is permanently retained on record. This poses future risks and inconveniences since all the repossessions, defaults lawsuits will be used as reference point. Such information makes it difficult to get a mortgage and other subsequent assistance.
It is also essential to be aware of the legibility criteria for filing bankruptcy under this chapter. A qualified attorney will be honest enough to let you know that if you are a business entity, you will not be allowed to file for the same. Only individuals and those filing jointly as husband and wife can file under this chapter. Business entities and corporations should consider chapter 11 bankruptcy.
Another requirement is that a certificate of poof from a counseling agency must be presented to the court. The document should prove that the debtor sought services from the related agency at least 180days before filing for chapter 13. If this is not submitted, such a party may not be considered.
The debtor should also provide proof of filing state and federal income tax returns for the last four years. The other critical requirement is a proposed repayment plan for all the debts. This should cut across priority debts which include alimony, child support and secured debts such as vehicle loan and mortgages. Such information can only be provided by with the appropriate lawyer in place, therefore enabling court procedures to be successful.
Chapter 13 legal representatives are mandatory in a bid to enable clients get conversant with various merits and demerits that come with such a decision. The first advantage is that the debtor is given ample time to clear off his or her debts. This lessens the chances of constant harassment by the creditors.
The other good news is that debts have to be paid out of the disposable income. Disposal income is the extra cash an individual has left after catering for all necessities including food, shelter and medical care. An individual will still be able to fulfill critical survival needs. The property that an individual is making partial payments on, in the long run is retained.
A chapter 13 bankruptcy claim however, is permanently retained on record. This poses future risks and inconveniences since all the repossessions, defaults lawsuits will be used as reference point. Such information makes it difficult to get a mortgage and other subsequent assistance.
It is also essential to be aware of the legibility criteria for filing bankruptcy under this chapter. A qualified attorney will be honest enough to let you know that if you are a business entity, you will not be allowed to file for the same. Only individuals and those filing jointly as husband and wife can file under this chapter. Business entities and corporations should consider chapter 11 bankruptcy.
Another requirement is that a certificate of poof from a counseling agency must be presented to the court. The document should prove that the debtor sought services from the related agency at least 180days before filing for chapter 13. If this is not submitted, such a party may not be considered.
The debtor should also provide proof of filing state and federal income tax returns for the last four years. The other critical requirement is a proposed repayment plan for all the debts. This should cut across priority debts which include alimony, child support and secured debts such as vehicle loan and mortgages. Such information can only be provided by with the appropriate lawyer in place, therefore enabling court procedures to be successful.
About the Author:
Cameron S. Schippers is a retired paralegal that helped individuals through the process of filing for Bankruptcy for 15 years. He has a deep understanding of the Bankruptcy code. To learn more about Johnson City Chapter 7 law he suggests you click here to learn more.
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