Many a times, the economic hardships can strike so hard that even the wealthiest individuals find themselves in difficult financial situations. Such instances call for individuals to declare themselves bankrupt. This may be a difficult thing to do since it may affect the future credit and reputation. Nevertheless, the individual will also have to contact a Johnson City chapter 13 attorney to aid in the proceedings.
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.
A chapter 13 bankruptcy claim however, is permanently retained on record. This poses future risks and inconveniences since all the repossessions, defaults lawsuits will be used as reference point. Such information makes it difficult to get a mortgage and other subsequent assistance.
It is also imperative that debtor is made aware of the requirements before filing a lawsuit. Here, the attorney will also inform them on the documents required and the type of people eligible for the same. To start with, business entities are ineligible to file under this chapter. Here, it is only solitary individuals or couples that can be allowed to apply.
Additionally, the debtor must avail a certificate of proof which indicates that a counseling agency provided debt counseling at least one hundred and eighty days prior to the filing for chapter 13. Without this proof availed in court, he or she will not be considered for the same. Professional counseling is required for ascertaining that the party had initially sought all the help available.
The debtor should also provide proof of filing state and federal income tax returns for the last four years. The other critical requirement is a proposed repayment plan for all the debts. This should cut across priority debts which include alimony, child support and secured debts such as vehicle loan and mortgages. Such information can only be provided by with the appropriate lawyer in place, therefore enabling court procedures to be successful.
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.
A chapter 13 bankruptcy claim however, is permanently retained on record. This poses future risks and inconveniences since all the repossessions, defaults lawsuits will be used as reference point. Such information makes it difficult to get a mortgage and other subsequent assistance.
It is also imperative that debtor is made aware of the requirements before filing a lawsuit. Here, the attorney will also inform them on the documents required and the type of people eligible for the same. To start with, business entities are ineligible to file under this chapter. Here, it is only solitary individuals or couples that can be allowed to apply.
Additionally, the debtor must avail a certificate of proof which indicates that a counseling agency provided debt counseling at least one hundred and eighty days prior to the filing for chapter 13. Without this proof availed in court, he or she will not be considered for the same. Professional counseling is required for ascertaining that the party had initially sought all the help available.
The debtor should also provide proof of filing state and federal income tax returns for the last four years. The other critical requirement is a proposed repayment plan for all the debts. This should cut across priority debts which include alimony, child support and secured debts such as vehicle loan and mortgages. Such information can only be provided by with the appropriate lawyer in place, therefore enabling court procedures to be successful.
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 Chapter 13 law he suggests you visit his friend's to learn more.
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