Why Chapter 13 Bankruptcy San Mateo Is Better To Choose

There are several cases settled in courts nowadays and bankruptcy is a very common one

. Debtors may file under certain kinds of these cases which are categorized into certain chapters. This depends on the debtor's current situation. It is up to the debtor to choose which kind to file. Chapter 13 bankruptcy San Mateo allows debtors to restructure their debts.

A number of debts including mortgage can be filed in Chapter 13. In this type, the debt cannot be discharged until the debtor completes the payment. This also provides protection to debtors against actions that their creditors may make. If the debtor's income is high enough to repay the amount they owe, this type would be advisable for them.

For this type of bankruptcy, small businesses and individuals will have their chance to reorganize finances. Individuals can still put things in order and manage their finances in order to repay. Businesses can also continue their operations so they can pay their creditors of the money they owe. Debtors will have the opportunity to straighten things out for their benefit.

Those who want to file under this category will have to make their repayment plan which will be submitted to the court for approval. Debtors have the freedom to choose to repay in full or in half or none at all. It all depends on certain factors. The payment period is typically between three to five years. Debtors can modify their plan if the court will not approve the first one.

Repayment efforts are usually supervised by a trustee as ordered by the court. A trustee is tasked to monitor things until debtors can rehabilitate their situation. Rehabilitation of finances is an important part of this process so debtors can repay what they owe. Creditors may not be able to object if debts will be discharged but they can question the repayment plan.

Procedural requirements must be produced by debtors so they can file for a case. These requirements include information about their debts and assets, tax documents, and a course on financial management that is court approved. Debtors must comply with such requirements with the help of their lawyers who know how these documents can be secured.

It can be confusing and hard for debtors to deal with this on their own. Getting an attorney would be a good thing to do in this kind of situation. These professionals can give clients advise on which option is best for them. Clients can make better decisions knowing the right option to choose at this time.

For this situation, experts will need to make a financial assessment on the client's situation to see find out what is the best decision for this case. The financial characteristics of the debtor has a big part to play in this scenario. These factors may be used to determine which chapter is the right one to choose.

Chapter 13 bankruptcy San Mateo has its advantages. These advantages are some of the reasons why debtors are advised to choose this type instead. This can stop foreclosures, lawsuits, and collection attempts that creditors might take against debtors. Finding lawyers is also a very important step that debtors must take in this kind of circumstance.

by: Jenifer Whitmire

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