Financial stability is something that is quite unpredictable and even wealthy individuals find themselves in chains of debts. The situation is characterized by endless debts which in the long run, call for filing a bankruptcy claim. It can be daunting to make this decision since it will have huge impact on future credit and reputation. To get acquainted, the debtor will need to find a good Johnson city chapter 13 attorney.
Chapter 13 attorney are quite essential when it comes to enabling debtors realize the advantages and disadvantages of making the declaration. One of them is that a debtor is guaranteed more time of clearing the chain of debts. This enables them to come up with constructive ways of cleaning up their tainted image.
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.
On the other side of the coin, the bankruptcy claim will have negative impact on the overall reputation of the debtor. Repossessions, lawsuits and defaults definitely imply that such a person will no longer be able to access mortgage, loans and other financial assistance. These greatly hinder the self image of such a debtor.
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.
The other requirement is that the debtor has to present tangible proof which indicates that some counseling agency had been consulted. This has to be within the last 180 days before the ultimate date of chapter 13 filing. Failure to provide this document may lead to rejection of the declaration. The other documents needed are the state and federal income tax returns. These should be for the past four years.
Additionally, a debtor has to provide a proposed repayment plan. This captures all the debts at hand including child support, alimony, and other forms of secured debts. Failure to confirm that you will be able to clear all these debts will not give you the opportunity to enjoy the extension period. Debtors should be well conversant with the above information which will only be given by hiring a good chapter 13 legal representative.
Chapter 13 attorney are quite essential when it comes to enabling debtors realize the advantages and disadvantages of making the declaration. One of them is that a debtor is guaranteed more time of clearing the chain of debts. This enables them to come up with constructive ways of cleaning up their tainted image.
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.
On the other side of the coin, the bankruptcy claim will have negative impact on the overall reputation of the debtor. Repossessions, lawsuits and defaults definitely imply that such a person will no longer be able to access mortgage, loans and other financial assistance. These greatly hinder the self image of such a debtor.
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.
The other requirement is that the debtor has to present tangible proof which indicates that some counseling agency had been consulted. This has to be within the last 180 days before the ultimate date of chapter 13 filing. Failure to provide this document may lead to rejection of the declaration. The other documents needed are the state and federal income tax returns. These should be for the past four years.
Additionally, a debtor has to provide a proposed repayment plan. This captures all the debts at hand including child support, alimony, and other forms of secured debts. Failure to confirm that you will be able to clear all these debts will not give you the opportunity to enjoy the extension period. Debtors should be well conversant with the above information which will only be given by hiring a good chapter 13 legal representative.
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 Bankruptcy law he suggests you click here to learn more.
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