Why Is It Necessary To Understand The Provisions Of Chapter 13?
Why Is It Necessary To Understand The Provisions Of Chapter 13
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If you try and understand the provisions of Chapter 13, you can clearly identify that this chapter is pretty similar to a 'Debt Consolidation Plan', but comes with several big exceptions!
Sometimes, US citizens who are interested to file bankruptcy face a tough challenge when they have to gather a good amount of money for filing the case. Isn't it comforting to know that much less money is required to get a Chapter 13 case filed as compared to Chapter 7?
Chapter 13 has got provisions which allow you to cure the past due mortgage payments through convenient monthly payments. The payment-period varies from person to person depending on the nature and amount of credit that has been availed.
Why is a Chapter 13 bankruptcy called a "wage earner's plan"?
This chapter allows citizens from regular-income groups to frame a plan that would help in repayment of all (or a part) of their debts. Generally, a 3-year period is given to the debtors for repaying the borrowed amount, provided their monthly earning falls below the applicable state median. Residents of Roseville, Folsom, and Sacramento are some amongst other US citizens who preferably seek advice from legal experts to assist them in developing a comprehensive plan for clearing off their debts.
Advantages of filing a Chapter 13 case
There are a great number of benefits associated with Chapter 13, and sometimes it becomes quite difficult to list all of them. However some common advantages that one gets to enjoy after filing a case are as follows:
* The chapter offers the citizens a good opportunity to save their residences or apartments from foreclosure. By filing under this chapter an individual can stop the foreclosure proceedings and save their property.
* Chapter 13 helps people in curing delinquent mortgage payments over a considerable period of time. This can be done through rescheduling of secured debts and stretching them over the life of the newly-developed plan.
* It offers standardized protection from creditors who may attempt unauthorized collections from the debtors.
* Finally, filing a Chapter 13 case ensures that debtors get to enjoy the benefits of a 'consolidation loan' and clear off their borrowings with utmost ease.