Bankruptcy under Chapter 13 of the Bankruptcy Code of the United States uses the bankruptcy process to settle your debts in full or part. Typically, the debtor would seek to pay its obligations to its creditors with future earnings. This type of bankruptcy proceeding applies only to someone with a monthly income that enables them to reduce debt payments. Hiring a Bankruptcy Attorney in St. Charles MO is a very important part of the process. Click here for more information.
Unlike filing for chapter 7 bankruptcy, filing under Chapter 13 does not mean the liquidation of all assets of the debtor. The bankruptcy process is really a restructuring of outstanding obligations – for five years. This is done through direct monitoring and control from the court. With Chapter 13 bankruptcy, debtors can keep their property. It is simply a process overseen by the courts to pay the debt without interest. This is guided by a repayment plan that shows the specific details, like transaction type and timing of payment. A Bankruptcy Attorney in St. Charles MO can help with this aspect.
Under the plan, the debtor is responsible to repay the creditors starting about thirty to forty-five days after the case has started. There is no trustee who is appointed by the court as in the case of chapter 7 bankruptcy. Therefore, the payment will go directly to the creditors. However, there are some cases where the court system will hire a trustee who ensures the disbursement of money to the creditors. The creditors are prohibited from collecting payments in excess of the terms that were agreed in the plan. It is better to seek professional help from your Bankruptcy Attorney in St. Charles MO in preparing a suitable repayment plan.
There are two advantages of chapter 13 bankruptcy over chapter 7. Under chapter 13, the debtor may make a choice of being in full compliance to pay off debts. But there are exceptions to this option, and you can ask your attorney about those when needed. The other advantage is that the repayment schedule may occur with or without the consent of the creditor. However, creditors may object to the plan to show a fair deal between the parties. Contact Van Dillen and Flood P.C. St. Charles MO for more information.
