Chapter 13 is one of the most used chapters in bankruptcy cases. This chapter sets out a legal agreement between a debtor and his creditors that creates a debt repayment plan. Filing Chapter 13 Bankruptcy Meriden CT protects debtors from losing their property, and guarantees creditors that they will be fully paid eventually. Bankruptcy attorneys can be consulted before filing for reorganization so as to offer legal advice on the matter and to represent the client in a bankruptcy court.
Reorganization is different from liquidation bankruptcy in that debtors get to keep all their exempt and nonexempt property, and they do not face repossession from creditors. Due to their complex manner, Chapter 13 cases may take longer and be more involving, requires much more legal knowledge and attorney services than filing for normal bankruptcy.
Chapter 13 Bankruptcy Meriden CT works by bringing the creditor and debtor together in a court hearing where the court determines how much the debtor should pay in monthly installments toward the repayment of his debts. The court sets this amount by calculating how much the debtor earns and determining an amount from that income that must be paid to the creditor over a period of time.
A bankruptcy lawyer negotiates a fair payment installment and time frame for his client, and helps in the hearings and the paperwork involved. To facilitate the transfer of money from the debtor to the creditor, the court appoints a trustee who oversees the transfers.
Chapter 13 bankruptcy sets out a few rules that must be keenly followed. Firstly, the debtor must disclose all his earnings in good faith, and be truly committed to honoring the payments each month. Jefferson Hanna Law helps debtors comply with chapter 13 and give out accurate information regarding their finances to the bankruptcy court.
The payment plan set out by the court must cater for priority debt claims such as child support and tax obligations first. As long as the debtor complies with all chapter 13 rules, the debtor is allowed to keep all their property. Once all the debt has been settled, the debtor is discharged from all debt.
