- Personal Finance
Chapter 13 Bankruptcy Rules
There are certain Chapter 13 Bankruptcy rules and regulations that you need to follow while filing for bankruptcy. Bankruptcy law is basically a set of federal statutes and laws that are governed by title 11 of United States and their bankruptcy code. If the court provides protection or an automatic stay then a term no longer than five years and no shorter than three years cannot be started by creditors.
The debtor does have the sheer responsibility for filing the proper plan. Though the majority of plans are readily filed at the initiation of a petition, the debtor does have the time of up to 2 weeks from filing of petition to file the plan. But if the court allows the debtor to act otherwise, debtor has to submit the plan that specifies the amount to be paid to each creditor and the terms. The lender should object to the agreement if it they feel it does not fix the issue.
The debtor does have a set of mandatory requirements to fulfill. These are that the plans should provide for the intake of all future earnings, to the trustee, that might be necessary to fund this plan, the plan should provide the full payment on a payment plan basis of priority claims unless and until the claim holder agrees to some different treatment, the plan should not be longer than a few years, unless approved by court to extend it to not more than five years.
The debtor can work with a claim that is secured on the outside of the plan. The plan should not be confirmed unless the security claims have been provided in full. The internet revenue service should object to an agreement that does not provide complete payment for priority taxes. If IRS does not object on this and this plan gets approved without prior submission of priority taxes then IRS has the power to dismiss or modify the plan.
This helps avoiding foreclosure. Foreclosure procedure can be stopped and payments for the mortgage may be paid while being able to pay current ones on time. The secured debts, as car loans, can be extended over the entire life of this kind of plan for repayment. At times this can also result in lower amount of payments.
There is also another provision to help co-signers so as to construct on to a code. Chapter 13 is quite similar to the bill consolidation loan. Everyone is qualified for this particular chapter including those who are self-employed. There is an upper bound of over three hundred thousand dollars for debts that are unsecured and the fully secured debts should be lesser than one million.
You are not allowed to file bankruptcy provided that you already have a similar petition dismissed because of failure in following the court orders, failure to appear in front of the court in the recent 6 months past. The whole process initiates by filing a petition in the court of bankruptcy in their country.
Having all the information you can about Chapter 13 bankruptcy rules will be of help during the process. All this has to be provided along a certificate of bankruptcy counseling with any of the other remaining repayments. The borrower also has to provide the chapter 13 bankruptcy trustees with the tax return copies for some past recent period and these copies have to be presented during the case.