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Prior to being able to file you must meet with a court approved credit counselor or counseling agency. You must complete a couse to better able you to manage your finances including a budget making and keeping course. This is truely helpful because a court usually wants you to propose a budget on how you are going to be able to make your expenses and make payments to your creditors if an agreement is reached.. You must also be a resident of the state you file in for a minimum of 60 days prior to the filing date.

The maximum debt allowed for filing Chapter 13 is $922,975 and unsecured debt must be less than $307,675. Certain debt cannot be included in Chapter 13 Bankruptcy including child support, alimony, educational loans, criminal fines and restitution ordered by the courts,

In this payment plan your creditor and you agree under a legal document to pay a monthly payment schedule and in return the creditors will reduce you payment and total debt owed. The court usually appoints some a trustee to recieve your payments and divide them between your creditors. As long as your payments are on time you are protected from creditors making any attempt at collection against you.

While under Chapter 13 protection, you cannot incur additional (new) debt greater than $250.00 unless you obtain court approval. This could affect you if you need a student loans or a car lease.

After you file you Bankruptcy petition, the court will usually issue an order prohibiting from collecting any portion of their debt from you, seizing property such as your car or commencing any continuing legal against you.

The whole idea behind Chapter 13 is that with the proper management of your finances you could avoid the situation. Now that the situation is being managed and supervized, you should have no further problem as long as you adhere to the plan.

Your first payment must occur within 30 days from the date your case is filed.If it is not the judge can and will dismiss your case. Approximately 6 weeks after your case is filed, their will be a Meeting with your creditors chaired by the trustee pf your case.

You can also find more info on Bankruptcy Guide. Bankruptcybliss.com is a comprehensive resource which provide information about Bankruptcy.

Tim_Wilson

Tags: Bankruptcy, irs, Loans, student loan

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Tags: Bankruptcy, irs, Loans, student loan