Financial ups and downs are quite a common phenomenon in the life of people, but bankruptcy is considered the most unfavorable scenario, which needs immediate help from a lawyer. One can consult a Corey Mills lawyer to plan some strategic moves to help one regain control of one’s financial position. The very first move would be to file for bankruptcy.
Filing For Bankruptcy:
Once the decision to file bankruptcy has been finalized, it is essential to determine the appropriate chapter of the bankruptcy code. The two most common chapter that people undertake to file for bankruptcy is either chapter 7 or chapter 13. A person who adopted chapter 13 gets considerable time to clear the payments. However, there is a limit to this period, which must not exceed five years, according to the scheme devised by the bankruptcy court.
What Follows After Filing For Chapter 13 Bankruptcy?
After the successful filing of a chapter 13 bankruptcy appeal in court, an automatic stay will be applied to the case. This automatically restricts the creditors and relieves the bankrupt from the pressure vehicle repossession, foreclosure of the house, garnishment of wages, and relevant lawsuits. The process that might follow after filing a chapter 13 bankruptcy case is as follows:
Submission Of A Plan For Repayment:
The repayment plan would contain the proposal for a monthly payment, detailing all the debts that need to be paid on a monthly basis, as well as the total amount one needs to repay the creditors.
Undertake A Course For Managing:
Finance Efficiently: A course on financial management from a renowned agency will assist one in taking good control of the finance, which is essential, especially after a bankruptcy. The course must be finished before the discharge of debts.
Attend Creditors’ Meeting:
A creditor’s meeting is also referred to as a 341 meeting which must be attended by the one filed for bankruptcy, generally via video conference. The main purpose of the meeting is the verification of information and to address any doubts of the creditors.
Receiving Confirmation Of The Plan:
If the creditors object to the repayment plan, the court will undertake a confirmation hearing. The main purpose of such a confirmation hearing is to accept or overrule the creditor’s objection. However, the court possesses the authority to deny the confirmation even without any objections. The confirmation procedure is generally completed within 3-9 months of filing bankruptcy.
Final Thoughts:
The case runs not more than five years, within which all the amount needs to be repaid abiding by the repayment plan. However, one must always be assisted by an attorney to ensure the smooth completion of such
