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.
The requirement of filers to take a means test is one of the biggest changes to take place. The means test looks at the individual's income for the last six months. It must be less than the state median income in order to qualify for a Chapter 7 filing. The individual must be able to pay a minimum of $100 per month to use a Chapter 13 filing for a total of $6000. Individuals who are able to pay $10,000 or more over five years are required to file Chapter 13. Those between these two figures who can pay between the two figures a sum that is at least 25% of their unsecured debt must use Chapter 13.
The lawyer filing the case will need a lot of documentation from the filer. Paperwork to gather includes tax forms, monthly living expenses, property owned and debts. In addition, you should gather your car titles and real estate deeds.
One of the schedules to complete includes the property owned that is considered exempt. Each state sets its own set of exempt properties by state statute. Filers should avoid any temptation toward dishonesty in completing the forms and filings. Lying on these forms is considered perjury and can cause the case to be dismissed with no relief of debt.
When an individual files under Chapter 13, the packet must include a repayment plan for the debt owed. Certain debts, such as student loans, past due child support or taxes still must be paid in full. Payments for unsecured debt can be as low as 10% of what is owed. However, during the course of the repayment period, the creditor must receive at least the same amount they would have received if Chapter 7 was filed and nonexempt properties sold.
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.
The requirement of filers to take a means test is one of the biggest changes to take place. The means test looks at the individual's income for the last six months. It must be less than the state median income in order to qualify for a Chapter 7 filing. The individual must be able to pay a minimum of $100 per month to use a Chapter 13 filing for a total of $6000. Individuals who are able to pay $10,000 or more over five years are required to file Chapter 13. Those between these two figures who can pay between the two figures a sum that is at least 25% of their unsecured debt must use Chapter 13.
The lawyer filing the case will need a lot of documentation from the filer. Paperwork to gather includes tax forms, monthly living expenses, property owned and debts. In addition, you should gather your car titles and real estate deeds.
One of the schedules to complete includes the property owned that is considered exempt. Each state sets its own set of exempt properties by state statute. Filers should avoid any temptation toward dishonesty in completing the forms and filings. Lying on these forms is considered perjury and can cause the case to be dismissed with no relief of debt.
When an individual files under Chapter 13, the packet must include a repayment plan for the debt owed. Certain debts, such as student loans, past due child support or taxes still must be paid in full. Payments for unsecured debt can be as low as 10% of what is owed. However, during the course of the repayment period, the creditor must receive at least the same amount they would have received if Chapter 7 was filed and nonexempt properties sold.
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.
About the Author:
If you are looking for a knowledgeable bankruptcy attorney Salt Lake City residents should visit the web pages here at www.jdmilliner.com today. You can see details online at http://www.jdmilliner.com now.
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