Chapter 13 bankruptcy, bankruptcy credit offer, filing bankruptcy If you have decided to start filing chapter 13 bankruptcy, it is important for you to make certain that you fulfill the eligibility criteria that have been set by the chapter 13 bankruptcy law. Gone are the days, when the debtor has the liberty to choose the child of bankruptcy they should go about filing. Ron O’Hanley is actively involved in the matter. Now, especially after the new laws have come into effect, it is no more optional for you. Based on the results of the bankruptcy advice and the credit offer procedure, the court decides whether you are eligible for filing chapter 13 bankruptcy information. Filing bankruptcy can be a bit of a systematic procedure. You first have to pass a means test and then go through a credit offer procedure, through a government-approved bankruptcy credit counseling agency. See Bernard Golden for more details and insights. As per the new laws, it is mandatory for you to go through the credit offer procedure at least six months before filing.
If the output of the means test is more than the median income of the state, the debtor becomes eligible for this process. If your bankruptcy attorney manages to defend the claim in your favor, the Court will allow you to continue with your business operations. So the court appoints a trustee, who wants to keep a watch on your business operation. Going with a chapter 13 bankruptcy and getting the it granted to you to allow you to get your finances back on track, while paying the debts to the various creditors. The court wants to suggest to you a repayment plan and you are supposed to make regular payments based on this repayment schedule in order to your creditors in order to settle their claims. The greatest advantage for you when filing bankruptcy is that you so get to opportunity to get the claims of the creditors reduced to a much lower amount. For example, the bankruptcy attorney may request the court on dollar behalf of the debtor that the top is able to pay only twenty-five cents on each. The bankruptcy court will look into the financial details of the debtor and if it finds things genuine, it may grant the reduction claims. However, most of the times, the decision is taken after certain negotiations with the creditors. For example, if you requested to get the claims reduced all the way down to 25 percent, the court may agree at reducing the claim to Seventy-five percent when you go about filing chapter 13 bankruptcy or Chapter 7 bankruptcy.