In the United States it is possible to declare bankruptcy and keep most of your assets; it is called chapter 13 bankruptcy. This plan demands that a portion of the accumulated debt be paid off over a defined period of time. People who are employed, have no reason to believe that they will lose their job and have nonexempt property that they do not want to give up are candidates. To declare chapter 13, the debtor must devise a repayment plan that is satisfactory to the creditors, the plan must be drawn up in accordance with the rules which are very strict. Often times it is wise to engage chapter 13 bankruptcy attorneys San Diego to help you through the process as it involves providing evidence that you have the ability to take on the monthly payments, attend credit counseling and other details of importance.
Once the declaration of intent has been made, the debtor will have to take credit counseling. During these counseling sessions the debtor will find out what the process is and at that time it will be determined if he or she is eligible to declare chapter 13. The people that are eligible must have a job or sole proprietors of a business that has sufficient regular monthly income to pay back a portion of their total debt every month. Your chapter 13 bankruptcy attorneys in San Diego will be in a position to advise you the limits for both secured and unsecured debt as the limits frequently change.
Once the individual has been found eligible, a petition is filed with the bankruptcy court in the petitioner’s area; the petition declares that the individual wishes to enter into chapter 13 bankruptcy. Along with the declaration of intent will be certain other documents that the court requires, these include a statement of assets and liabilities, a financial statement showing net income and a list of all creditors, both secured and unsecured; in addition to this any real estate assets, along with a total of the debt and the required amount needed on a monthly basis for the bankrupt to live.
Once these documents have been provided, the court will notify the creditors of your intention, trustees take over the control of the process and a proposed payment plan is developed in hopes of satisfying the creditors.
