If you have an overwhelming amount of debts, you may need to file for Chapter 13 bankruptcy. This type of bankruptcy is specifically designed to help people get back on their feet when they’re faced with massive financial problems. It can give them the time they need to work out their financial issues and create a plan to pay off their debts. However, it is important to understand that there are certain requirements that you must follow to ensure you are eligible.
If you are planning on filing Chapter 13 bankruptcy, you may want to consider payroll deductions. Using this method will make your payments more likely to be on time. You will also have a lower chance of your payments being dismissed by the bankruptcy court. If you do miss a payment, you should contact your attorney to see if you can get it fixed.
When you file a Chapter 13, you are required to create a repayment plan and make regular payments to the Chapter 13 Trustee. The debtor has two options for making payments: one is to make them directly to the Trustee, and the other is to have them deducted from your paycheck. Choosing the option that works best for you depends on your situation.
In general, the debtor is required to send the first payment to the Chapter 13 Trustee. This can be done through a check or a money order. The debtor should include their name and case number on the payment. However, only in very unusual circumstances does the Court allow plan payments to be sent directly to the Trustee.
Typically, a Chapter 13 debtor’s payments are made through a payroll deduction at the place where they are employed. The amount of the payment should be as close to the actual tax liability as possible.
If your employer fails to deduct your plan payments, you can either notify the Trustee or hire an attorney. If you do not contact the trustee, you risk being dismissed from the case. You can also change your plan to a chapter 7 repayment plan if you miss your monthly payments.
When a bankruptcy court orders an employer to deduct plan payments from the debtor’s paycheck, it is considered a wage order. If the court does not issue an order, the employee will have to make the plan payments directly to the Trustee.
The debtor’s employer is also responsible for sending in payments on time. Even if the employer does not send the payment on time, the debtor must still make the plan payments.
Liquidation of luxury items
If you’re considering filing for bankruptcy, you may want to take a minute to consider the finer points of liquidation. Although liquidation can have a bad reputation, there are some things you can do to make it work for you. First, you should avoid using credit cards, especially if you’re filing for Chapter 13!
Another option is to convert your case to Chapter 7 and reorganize your debts. In this scenario, you’ll pay off your debts over time. You can also keep your assets. However, your creditors will be allowed to collect on some of your non-exempt property.
Unlike the more common Chapter 7 bankruptcy, you’ll have the ability to keep your luxury items, such as the cars you own. This is because you can file for Chapter 13 bankruptcy, which will allow you to pay off your debts over a three to five year period. Of course, if your financial situation changes, you will need to come up with a new plan.
In the bankruptcy world, you’ll find many options to choose from. You could opt for a streamlined version that eliminates all but your most coveted assets, or you can aspire to be a credit card magnate and pay off all your debts. You’ll have to make a commitment to yourself, though. If you’re not able to, you may have to forego your favorite car or a new wardrobe. In the end, you’ll be a better person for it.
As with anything, the key to success lies in preparation. Don’t forget to ask your lawyer what your best bet is. You’ll also need to learn about your exemptions, which will vary from state to state. As long as you don’t use your non-exempt assets, you’re in the clear. In the end, you’ll be in a much stronger financial position in the long run. And, the money you save will be well worth the hassle. Plus, you’ll get your credit rating back on track!
It’s also smart to look for a financial advisor who can guide you through the process. For instance, you might need to seek out a loan officer who specializes in bankruptcy, as he or she will know how to structure a repayment plan that works for you.
Spousal or child support
Are you in need of Chapter 13 bankruptcy because of child or spousal support? This is an important question because bankruptcy can help you get out from under debt.
When you file for bankruptcy, you must continue to pay the Court-ordered support payments owed to your spouse. This may be difficult to do if you are already behind in your payments. However, if you file for Chapter 13, you will have a repayment plan that lets you pay only what you can afford. You can catch up on your missed payments quickly after your bankruptcy is discharged.
As part of your repayment plan, you may be allowed to deduct some child support from your income. This will reduce your general unsecured debt and make it easier to repay your support obligations.
Your income and support expenses will determine the type of bankruptcy you can file. If you are currently paying support, you should discuss your options with a lawyer.
If you are behind on your support payments, you may still be able to catch up after filing for bankruptcy. You should also consider how bankruptcy will affect your ability to pay other debts. This includes your car loan, medical bills, and tax claims.
If you want to be able to eliminate or reduce your support, you must go to the same divorce court as your ex-spouse. You must prove that there has been a change in your circumstances. This may be a loss of employment, a change in your parenting time, a change in your needs, or another reason.
If you have substantial medical or other tax debts, you may be able to get out from under those debts by filing for bankruptcy. However, some other types of debts may not be dischargeable.
You can also choose to pay your support obligations using your own resources, rather than seeking a third-party payment. Many couples choose this option, offering cash in lieu of assets.
In addition, bankruptcy can stop wage garnishments on your behalf. Wage garnishment orders require employers to withhold a portion of your income to cover a certain amount of child support.
Discharge of debts for alimony or child support
If you are having trouble paying debts, filing for bankruptcy may be an option. However, there are some types of debts that cannot be discharged in Chapter 13. Some people may owe substantial tax obligations, medical expenses, car loans, and other unsecured debts.
Alimony and child support are two types of domestic support obligations. They are defined by the bankruptcy code. In general, alimony arrears are not dischargeable in bankruptcy.
However, if you owe alimony, you may be able to make the payments in a Chapter 13 bankruptcy case. The amount of the arrears can be stretched out over a three or five year repayment plan. The obligor must show that he or she has a reasonable amount of disposable income to make the payment.
If a person files for bankruptcy, the bankruptcy trustee will ask for the name and address of the ex-spouse. The court will then determine whether the ruling qualifies as an example of an “other type of marital property division” that would be excluded from discharge.
The bankruptcy court will then give the obligation a higher priority. The court will also pay administrative expenses ahead of the priority debts.
The debtor must certify that he or she has a confirmed plan that provides for payment of domestic support obligations in full. If the plan fails to do so, the chapter 13 case will be dismissed.
The bankruptcy court can stop child support garnishment, but the debtor will still be obligated to continue making payments. Depending on your situation, you may also be able to eliminate other debts. If you are behind on your alimony or child support payments, it’s a good idea to talk to a lawyer about how the bankruptcy process works.
If you owe alimony or child support, you may be able to pay it over a period of three to five years in a Chapter 13 bankruptcy. If you have questions about whether you can repay your alimony or child support in a bankruptcy case, contact a Philadelphia bankruptcy attorney.
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