Duluth Bankruptcy Lawyers Help Explain Chapter 7 and Chapter 13 by Nick Messe
When debt is overwhelming, bankruptcy offers two options for relief: Chapter 13 and Chapter 7. Chapter 13 is often referred to as the "wage earner's plan" or "reorganization bankruptcy." This is because you are allowed to use your income to pay off your debts, under the court's supervision, within in a set length of time. After you have successfully completed all the requirements of your plan, all remaining debts, as prioritized by the court, are full discharged.
Under the new bankruptcy laws, signed into law by President Bush in 2005, some criteria must be met before a Chapter 13 filing is allowed. Duluth bankruptcy lawyers will explain these new laws to you and help you determine if you are eligible for a Chapter 13 plan.
Mandatory Debt Counseling - All individuals seeking to file for bankruptcy must now receive credit counseling from an agency approved by the United States Trustee's office. A list of these agencies is obtainable from their website: http://www.usdoj.gov/ust/. Duluth bankruptcy lawyers can also suggest certified local agencies. The certificate you receive from this counseling must be presented to the court along with your filing documents.
Determining the length of your plan - This test is a comparison of your monthly income, averaged over the last six months, with your average state median income. If your income is higher than the state median income, you will have to have a five-year plan for debt repayment. If your income is lower, then you'll have a three-year plan.
Making the first payment - Your first payment will be due within 30 days of the date you file your request with the court. The amount of your payments will be determined by the court. You may make these payments yourself to your assigned trustee or you may elect to have the amount taken out of your paycheck by payroll deduction.
In the End - When you successfully reach the end of your plan, you will be expected to attend a budget counseling course with an agency approved by the United States Trustee's Office and present evidence of successful completion. (A list of these agencies is available from their website: http://www.usdoj.gov/ust/. (Click "Credit Counseling and Debtor Education.") Duluth bankruptcy lawyers can also provide you with a list of local approved agencies. You must be up to date in all child support and alimony payments. Once all these criteria are met, any remaining debts that are eligible for discharge will be wiped out.
When faced with the possibility of bankruptcy, Duluth bankruptcy lawyers can help get your financial situation back under control.
Article Source: ArticleSnatch Free Article Directory
When debt is overwhelming, bankruptcy offers two options for relief: Chapter 13 and Chapter 7. Chapter 13 is often referred to as the "wage earner's plan" or "reorganization bankruptcy." This is because you are allowed to use your income to pay off your debts, under the court's supervision, within in a set length of time. After you have successfully completed all the requirements of your plan, all remaining debts, as prioritized by the court, are full discharged.
Under the new bankruptcy laws, signed into law by President Bush in 2005, some criteria must be met before a Chapter 13 filing is allowed. Duluth bankruptcy lawyers will explain these new laws to you and help you determine if you are eligible for a Chapter 13 plan.
Mandatory Debt Counseling - All individuals seeking to file for bankruptcy must now receive credit counseling from an agency approved by the United States Trustee's office. A list of these agencies is obtainable from their website: http://www.usdoj.gov/ust/. Duluth bankruptcy lawyers can also suggest certified local agencies. The certificate you receive from this counseling must be presented to the court along with your filing documents.
Determining the length of your plan - This test is a comparison of your monthly income, averaged over the last six months, with your average state median income. If your income is higher than the state median income, you will have to have a five-year plan for debt repayment. If your income is lower, then you'll have a three-year plan.
Making the first payment - Your first payment will be due within 30 days of the date you file your request with the court. The amount of your payments will be determined by the court. You may make these payments yourself to your assigned trustee or you may elect to have the amount taken out of your paycheck by payroll deduction.
In the End - When you successfully reach the end of your plan, you will be expected to attend a budget counseling course with an agency approved by the United States Trustee's Office and present evidence of successful completion. (A list of these agencies is available from their website: http://www.usdoj.gov/ust/. (Click "Credit Counseling and Debtor Education.") Duluth bankruptcy lawyers can also provide you with a list of local approved agencies. You must be up to date in all child support and alimony payments. Once all these criteria are met, any remaining debts that are eligible for discharge will be wiped out.
When faced with the possibility of bankruptcy, Duluth bankruptcy lawyers can help get your financial situation back under control.
Article Source: ArticleSnatch Free Article Directory