When “Chapter 13” is mentioned, in isolation or otherwise, it should ring a bell-bankruptcy. Now, this is a topic many frown upon and justifiably so. Let’s face it, you are basically declared by a court to be unable to discharge to your financial obligations. Seems like you “bit off more than you could chew,” didn’t you? Now that’s not very nice, is it? And we have not even begun analyzing all the encumbrances placed on the person adjudged bankrupt. For starters, you cannot obtain a loan or mortgage, you cannot become a director of any company or seek any elective post. It gets worse because the law provides for “bankruptcy offenses.” Breaching any of the conditions and limitations placed on you could have you facing penalties – including a jail term. So point is, a status of bankruptcy is not one to jump into haphazardly. It does have its downside hence explaining all the fuss Chapter 13 Charleston WV brings.
To clear the air on ‘Chapter 13’ it is important to note that there are various forms of filing for bankruptcy. The most general classification is voluntary or involuntary bankruptcy. The former refers to the filing of a petition by the debtor as against his person while the latter connotes filing of a petition by the creditors. Of particular significance to us are the various forms of bankruptcy as defined by the United States Bankruptcy Code. This code is largely divided into 15 chapters all of which define the various forms of filing for bankruptcy. This being a very formal exercise, statutory forms are provided for under the code.
Most importantly however, the most relevant provisions are Chapters 7, 9, 11, 12, 13 and 15. To give an outline of the chapters, chapter 7 deals with ‘straight bankruptcy’, chapter 9 deals with reorganization for municipalities, chapter 15 deals with cross-border insolvency and chapters 11 to 13- particularly Chapter 13- provides for reorganization of the debts. Chapter 13 Charleston WV has one major goal: to enable income-receiving persons to meet the stipulations of a court-approved plan. Once you understand this, all the dust will be settled concerning Chapter 13 bankruptcy proceedings.
With the intervention of the court, the debtor and creditors decide on an arrangement to pay off the debts within 2-5 years. After this period of time lapses, the debtor can apply for a discharge from bankruptcy.
A few things to note about Chapter 13 Charleston WV is that some assets – which would otherwise be considered non-exempted assets – are exempted from the court process. In addition to that, the limitations placed on the debtor are far less than those placed on a debtor filing for bankruptcy under chapter 7.
To make an informed choice on the most appropriate mode of filing for bankruptcy, you should always seek legal advice. For more information on Chapter 13 Charleston WV, visit The Bankruptcy Law Center.
