Chapter 13 Bankruptcy
In Summit/Wasatch Utah
Generally, this type of case is applicable to debtors who have valuable assets like a house, which is not totally covered by exemptions, and wish to secure it. In addition, since you are required to pay on a monthly basis, you must have a steady source of income.
What is Chapter 13 Bankruptcy in Summit/Wasatch Utah?
As a debtor, you must make a single monthly plan payment to the bankruptcy trustee within the duration of the plan, and then the latter will distribute the plan payment among all your creditors according to priorities and amounts stated in the plan. Remember that some financial obligations such as home mortgages must be paid outside of the plan. But with the assistance of an excellent lawyer, securing your home is possible.
How much is the Plan Payment?
The amount should be equal to all the surplus income you and your spouse make, if you are married. Your surplus income is the excess amount that is not reasonably necessary to support your dependents.
If your current budget shows that you can pay more than the amount, the trustee will find ways to have your payment increased. This is the reason why you need a bankruptcy attorney because assessing the amount you will pay is tricky if you have less knowledge about the law. As soon as you step in our office for an initial consultation, we will calculate this immediately before filing your case.
Unlike Chapter 7 that does not free you from your debts instantly, Chapter 13 protects you from garnishments, lawsuits, non-stop phone calls, and other creditors’ actions while the plan is in effect. And at the end of three or five years, you are discharged from all dischargeable unsecured debts, no matter how much your creditors have received from your payment plan.
Benefits of Chapter 13 Bankruptcy in Summit/Wasatch Utah
So, what are the benefits of filing Chapter 13 bankruptcy?