Chapter 13 bankruptcy Massachusetts is a procedure that is initiated by a debtor who is not able to pay off their creditors due to a rough patch that they may be experiencing. It is a process that allows one to reorganize their debts so that they can keep their homes and cars while still being in full control of their obligations.
The people who go to file for this procedure are usually looking to end proceedings such as foreclosures, garnishments and lawsuits that may be directed at them. The whole point is to lower any credit card debts that they may have. Because of the complexity of the process, it is advisable for one to use an attorney who can simplify the case and help increase their odds of having it approved.
After going to court and filing this process, the court grants the debtor what is known as an automatic stay whereby creditors are not allowed to make calls to the individual who filed the motion. Both parties are sent a Notice of Commencement which shows the time and date that the procedure was initiated.
Type 13 is very different from the 7 one because it doesnt discharge debts but instead helps the debtor plan in a hierarchy of who should be paid first within the time frame of three to five years.The courts use the Bankruptcy code to help figure out which creditors deserve to be paid first.
It is important to note that this procedure is not for everyone as there are requirements that have to be met. One of these is that the person must have a steady income that can go to paying off what they owe. They must also have disposable income that can go to paying unsecured debts such as credit cards.
There is hope for those people who need more time to pay their debts as they can do so by filing chapter 13 bankruptcy Massachusetts instead of wasting their time and money in filing Chapter 7. When one reorganizes their obligations, they are able to pay off secured debts first and then clear up those that are unsecured. The ruling on this takes about seven years on ones credit report.
The people who go to file for this procedure are usually looking to end proceedings such as foreclosures, garnishments and lawsuits that may be directed at them. The whole point is to lower any credit card debts that they may have. Because of the complexity of the process, it is advisable for one to use an attorney who can simplify the case and help increase their odds of having it approved.
After going to court and filing this process, the court grants the debtor what is known as an automatic stay whereby creditors are not allowed to make calls to the individual who filed the motion. Both parties are sent a Notice of Commencement which shows the time and date that the procedure was initiated.
Type 13 is very different from the 7 one because it doesnt discharge debts but instead helps the debtor plan in a hierarchy of who should be paid first within the time frame of three to five years.The courts use the Bankruptcy code to help figure out which creditors deserve to be paid first.
It is important to note that this procedure is not for everyone as there are requirements that have to be met. One of these is that the person must have a steady income that can go to paying off what they owe. They must also have disposable income that can go to paying unsecured debts such as credit cards.
There is hope for those people who need more time to pay their debts as they can do so by filing chapter 13 bankruptcy Massachusetts instead of wasting their time and money in filing Chapter 7. When one reorganizes their obligations, they are able to pay off secured debts first and then clear up those that are unsecured. The ruling on this takes about seven years on ones credit report.
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