Money problems can affect nearly anyone. Unforeseen circumstances such as a failed investment or loss of a job by the breadwinner of the family can be devastating. With the help provided by a bankruptcy attorney Salt Lake City locals find the support to overcome the hurdle.
In 2005, codes were changed so that all individual debtors are now required to undergo credit counseling. The credit counseling session must occur within six months of filing. In addition, once the paperwork has been filed with the court, the individual must complete a financial management course.
Another big change is that filers must now meet a means test in order to file under Chapter 7. This test looks at income for the six months prior to filing. Income must be less than the median of state residents in order to qualify to use Chapter 7. In addition, under Chapter 13, the filer must pay at least $100 monthly for 5 years, ($6,000) in the repayment schedule. If disposable income shows $167 per month in disposable income ($10,000 in 5 years) the filer must file under Chapter 13. The payments under Chapter 13 for those between these figures should add to 25% of the total unsecured debt.
The court will require a lot of documentation that can be provided to the lawyer. Some of the important paperwork to find includes tax forms, properties owned, debts and a listing of living expenses. In addition, be sure you have ready access to any real estate deeds or car titles.
Once information is gathered, the filer or his attorney works to determine the property believed to be exempt from seizure. These exemptions are based on state law and are listed on one of the schedules. It is essential that you are honest in the completion of paperwork or you could jeopardize your right to receive financial relief.
Individuals who file using Chapter 13 must also propose a repayment plan to be approved by the court. Debts such as past due child support and taxes must be repaid completely. Unsecured debt can often be repaid at levels as low as 1/10 of the total debt owed. During the repayment period, creditors must receive no less than they would have received had one's nonexempt assets had been seized and sold through a Chapter 7 filing.
Once the court receives the paperwork, an automatic stay is placed on all property belonging to the individual. Creditors must stop all attempts to collect the debt. Any foreclosure procedures are stopped automatically. If filing under Chapter 13, payments must be made immediately. These payments come directly from the wages. The lawyer or the filer may make theses arrangements with the court.
When financial difficulty strikes, the law provides a way to overcome the problems. Neither Chapter 7 nor Chapter 13 provides an easy way out. However, they can help the individual to see a light at the end of the tunnel. The changes in the code have made filing more difficult than it was earlier. With the help of a bankruptcy attorney Salt Lake City residents can successfully navigate these waters.
In 2005, codes were changed so that all individual debtors are now required to undergo credit counseling. The credit counseling session must occur within six months of filing. In addition, once the paperwork has been filed with the court, the individual must complete a financial management course.
Another big change is that filers must now meet a means test in order to file under Chapter 7. This test looks at income for the six months prior to filing. Income must be less than the median of state residents in order to qualify to use Chapter 7. In addition, under Chapter 13, the filer must pay at least $100 monthly for 5 years, ($6,000) in the repayment schedule. If disposable income shows $167 per month in disposable income ($10,000 in 5 years) the filer must file under Chapter 13. The payments under Chapter 13 for those between these figures should add to 25% of the total unsecured debt.
The court will require a lot of documentation that can be provided to the lawyer. Some of the important paperwork to find includes tax forms, properties owned, debts and a listing of living expenses. In addition, be sure you have ready access to any real estate deeds or car titles.
Once information is gathered, the filer or his attorney works to determine the property believed to be exempt from seizure. These exemptions are based on state law and are listed on one of the schedules. It is essential that you are honest in the completion of paperwork or you could jeopardize your right to receive financial relief.
Individuals who file using Chapter 13 must also propose a repayment plan to be approved by the court. Debts such as past due child support and taxes must be repaid completely. Unsecured debt can often be repaid at levels as low as 1/10 of the total debt owed. During the repayment period, creditors must receive no less than they would have received had one's nonexempt assets had been seized and sold through a Chapter 7 filing.
Once the court receives the paperwork, an automatic stay is placed on all property belonging to the individual. Creditors must stop all attempts to collect the debt. Any foreclosure procedures are stopped automatically. If filing under Chapter 13, payments must be made immediately. These payments come directly from the wages. The lawyer or the filer may make theses arrangements with the court.
When financial difficulty strikes, the law provides a way to overcome the problems. Neither Chapter 7 nor Chapter 13 provides an easy way out. However, they can help the individual to see a light at the end of the tunnel. The changes in the code have made filing more difficult than it was earlier. With the help of a bankruptcy attorney Salt Lake City residents can successfully navigate these waters.
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