How Are Judgments Handled In A Chapter 13 Filing  

In Chapter 13 filing, the debtor needs to file a settlement plan with the appeal or within 15 days following the appeal is filed. This can only vary in case the court allows an extension.

A plan needs to be proposed for court authorization and must contain details for payments of preset sum to the trustee on a standard basis which can normally be twice a week or monthly. Thereafter, the trustee circulates the funds to creditors as per the stipulations of the plan, which may recommend creditors amounts less than the entire payment on their claims.

Three types of claims are included under Chapter 13 filing which are priority, secured, and unsecured. Priority claims refer to the unique granted status by the bankruptcy law, for example a majority of taxes and the costs of bankruptcy happenings. Secured claims refer to the claims which the creditor has the authority to repossess definite property if the debtor fails to pay the fundamental debt. Whereas, unsecured claims are usually those for which the creditor has no unique authority to pull together against specific possessions owned by the debtor.

Generally, the plan should make the entire priority claims payments unless a specific priority creditor asks for a special dealing of the claim. The debtor is supposed to initiate making plan payments to the trustee within 30 days after filing the bankruptcy case, even if the plan has not been permitted by the court. Seldom, a variation in situations may negotiate the debtor's capability to make plan payments.

More Articles :




How Are Judgments Handled In A Chapter 13 Filing

How-Will-Filing-Chapter-13-Effect-My-Credit      Chapter 13 is a restructuring arrangement. Under Chapter 13, the debtor pays some or all of the debts over a time of 3 to 5 years to the Trustee who issues the funds according to a plan accepted by the Bankruptcy Court. More..




Home  • Bankruptcy Law   • Business Law  • Constitution Law • CopyRight Law   • Criminal LawEmployment Law   • Family Law   • Immigration Law   • Legal Dispute      • Malpractice   • Personal Injury   • Real Estate Law   • Tax Law   • Traffic Law   • Trust Law Legal News

How Are Judgments Handled In A Chapter 13 Filing )
Copyright © 2012, All Rights Reserved.