Bankruptcy confirmation is a prerequisite for individuals filing for Chapter 13 protection. Also referred to as 'reorganization', debtors are required to submit debt repayment plans through the court at the time of filing or within 15 days after submitting petitions.
Bankruptcy confirmation hearings are used to determine if debt reorganization plans adhere to U.S. Code regulations. Chapter 13 payment plans document the amount and payment schedule. Payments are typically established on a biweekly or monthly schedule and submitted to the court trustee. Trustees distribute payments to creditors according to the terms set forth in the reorganization plan.
Salt Lake Bankruptcy Attorney, Atlanta Bankruptcy Lawyer, Getting Bankruptcy Lawyer,
Once petitions are filed, creditors are notified and a 341 creditors meeting is scheduled. 341 meetings allow debtors and creditors to meet face to face. Debtors are given the opportunity to explain their financial situation and ability to repay outstanding debts. Creditors might agree to accept less than is owed, reduce interest rates, or remove penalties and late fees.
Information provided at 341 creditor meetings is provided under oath. When consumers provide falsified information they can be subjected to jail time and their bankruptcy petition will be denied.
New laws enacted by Congress in 2005 have made filing for protection more difficult. The Bankruptcy Abuse Prevention and Consumer Protection Act include stipulations requiring debtors to repay a portion of debts through reorganization plans.
Few people are capable of undergoing proceedings without legal counsel. BAPCPA requires attorneys to file statements regarding clients' financial status of accuracy of information provided.
Many bankruptcy attorneys switched to new fields of law, making it difficult for debtors to locate lawyers to assist with their petitions. Those who remained in the profession charge higher rates to cover litigation costs.
BAPCPA determines the amount of repaid debt through the 'means test'; a tool which compares debtors' income to that of their states' median income level. When consumers earn more than median levels they must file Chapter 13 and establish a confirmed repayment plan. If earnings fall below average income levels, debtors may qualify for chapter 7; a chapter which discharges all outstanding debts.
Chapter 13 plans usually last between three and five years. These payments are in addition to normal monthly expenses. Unexpected financial setbacks can quickly cause debtors to fail out of bankruptcy.
When consumers cannot adhere to repayment plans, creditors can petition the court for bankruptcy dismissal. If granted, consumers lose court protection and creditors can commence with collection action, including foreclosure.
Personal bankruptcy can help consumers reduce financial hardship. However, debtors should take time to understand the pros and cons of this decision. Take time to research alternatives such as credit counseling, debt consolidation or debt settlement.
Bankruptcy Attorney Jacksonville FL
Is Bankruptcy Right For You? Talk to Bankruptcy Attorneys Free and Confidential. Licensed bankruptcy attorneys are available. Attorneys will call you to discuss your case for free. Find out if bankruptcy is right for your situation.
Rating of Bankruptcy Attorney Jacksonville FL
Get Online Application at online Bankruptcy Lawyer.
0 comments:
Post a Comment