Applying For Chapter 13 Bankruptcy Massachusetts

By Rosalinda Skinner

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.

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How To Initiate Chapter 13 Bankruptcy Massachusetts

By Therese Short

The Chapter 13 bankruptcy Massachusetts is one where a debtor restructures their debt by filing for a procedure which when approved, can see them pay their debts through smaller investments and periods of 36 to 60 months. These payments made every month are paid from ones wages makes it different from Chapter 7 where property of the individual is liquidated.

It is a disgrace for one to lose a home or a car because of a courts decision to liquidate in order to pay creditors what is owed to them. This is why filing this proceeding is a good idea because it affords the debtor more time to pay off the debt they owe to others. They are required by law to list what they have and owe so that the court can calculate the right monthly payment to make.

The debts that the individual lists must be repaid between three to five years. The judge decides this based on the amount of disposable income that one remains with after paying off all debts, the lapse of time since they missed mortgage or car payments and also the amount of cash that would have been paid to creditors under the other Chapter 13 type.

In order to get the best monthly payment plan, one has to write down what assets they own and what they owe to creditors. Now is not the time to be selective because it can mean higher monthly payments if the court doesnt see many debt obligations. Some debts are immediately discharged especially credit card and medical bills and the rest are paid down. The creditor may not make any contact with debtor and can only do so with a court order.

People who are late on their mortgage payments and their homes are going to foreclosure sales can take advantage of filing this procedure which immediately stops the process. It is important for a person to understand that the late mortgage payments are not discharged and still have to be paid. The time to do it is what is given to the homeowner.

Chapter 13 bankruptcy Massachusetts stays on ones credit report for seven years and can be initiated by anybody who needs more time to reorganize their debt. If one has a small debt but are not able to pay it, they can speak to the creditor and ask them to wait a few more days or work out a payment plan with them. chapter 13 bankruptcy Massachusetts

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