The Meaning of Bankruptcy Hamilton

Chapter 13 filings, which now make up the bulk of bankruptcy filings, are considered “wage earner plans” where the debt amount is reduced based on the consumer’s ability to pay, and a plan is set up so that consumers pay their debts in three to seven years. The repayment plan is often overseen by an official of the court who can dictate consumers’ spending while they’re in the plan. As with Chapter 7, Chapter 13 filings go on a credit report, are matters of public record, and are available for review by anyone, including employers.

Congress decided to make major changes to the United States bankruptcy code in recent years because of the problem the current code was creating. With more people filing for bankruptcy protection and discharging their debts, companies that extended credit to the debtors were forced to cease trying to collect on the money that was owed to them.

Even though filing for Chapter 7 bankruptcy in Seattle has a lot of advantages, it's necessary to consult with a qualified attorney before filing the necessary paperwork. Your attorney can help you determine whether you qualify for this type of bankruptcy and how it will affect your finances.

Ask for a referral from a lawyer you trust, or look through the yellow pages. A good lawyer would handle calls and help get favorable debt-return options. Before filing for bankruptcy, the debtor would need to get a credit ""briefing"" from an approved agency. This will summarize the benefits of credit counseling. If this is not done, the bankruptcy case may be dismissed.

As a man or woman files a bankruptcy case beneath chapter 7, the court assigns a trustee who will take over the non exempt assets of the debtor concerned and pays off the collectors.

Second or third mortgage may also be deprived of the bankruptcy case away, if the second or third mortgage amount is completely uncertain, "the property. New York Bankruptcy Law provides that until the mortgage is 100% unsecured by real estate, it can be stripped away in unsecured debt. This means that if your client's mortgage, as well as the homestead exemption for a spouse $ 50,000 of value exceeds the property value, then the second or third mortgage to be stripped away in Chapter 13 bankruptcy.

Chapter 13 filing requires that debtors be able to set up and maintain a payment plan to their creditors. The payment plan should include all disposable income for the individual or couple for the next three to five years. This chapter can stop debt collectors attempts and phone calls. It takes a longer time than a Chapter 7, but allows the petitioner to keep all his or her assets.

Another reason divorced individuals seek the advice of a bankruptcy attorney is to find ways to avoid paying expenses related to shared property. Consider the following scenario: