Chapter 13 bankruptcy laws help people repay a part or all of their debts across a period of time at lower interest rates. Federal bankruptcy allows an individual to file chapter 7 bankruptcies or chapter 13 bankruptcy. However, the difference between the two is that under chapter 7 bankruptcy a trustee is appointed to pay off all the debts to the creditors by liquidating most of the non-exempt assets of the client. Whereas under chapter 13 bankruptcy laws a trustee is appointed who is expected to make all the payments to the creditors after receiving payment from the client. Filing chapter 13 bankruptcy law enables a person to pay off a part of all of his debts but one can only qualify for the Federal bankruptcy law under chapter 13 only if one has a stable source of income.
Chapter 13 bankruptcy is not as easy as it looks from outside. It is very complicated and so a person filing chapter 13 bankruptcy law should be extremely careful about making the payments on time especially if its the first time that he is going to pay after filing for chapter 13 bankruptcy. There are a few things one should remember after filing chapter 13 bankruptcy.
Once chapter 13 bankruptcy is filed and a payment plan is chalked wherein at a specific rate of interest the debtor will repay the debt. A trustee appointed for the purpose will handle the part of paying off the debts to the creditors but prior to that the debtor himself should make sure that the payments to be made are done on time so that chances of default are minimized. Since you will be paying off the debt from your income it is very important to check whether the company you are working for is paying you on time. At times in spite of you making the payments on time, the trustee’s personal bankruptcy information records will show discrepancy in the amount to be paid to the creditors. Hence, it is very important to keep a check on your source of income so that there is no missed payment from your end. Any missed payment will get your case dismissed if you reach the confirmation hearing. So it is very important to make the payments on time.
30 days after you have filed for chapter 13 bankruptcy your first payment becomes due and in case you miss on the very first payment your case gets dismissed. So it is important to be on time as far as your bankruptcy payments are concerned not only in the first payment but also during the entire trial period when you will be observed by the bankruptcy trustee on your repayment capability and how punctual you are in your payments. Once the bankruptcy trustee is sure that you are responsible enough to implement chapter 13 bankruptcy laws diligently. Also, one should remember that till the time your company starts the payroll deduction you have to personally make the payments to your trustee.
Another personal bankruptcy information that one should keep in mind after filing chapter 13 bankruptcy is to ensure that your full name and court’s case number is written right on top of the file clearly so that the trustee does not miss out on it amongst the many files he has to oversee. You should also keep a check on whether the trustee has received your payment and paid back to the creditors. This can be done by logging in and seeing what is going on in your case.
Whether you entrust your case with a chapter 7 bankruptcy trustee or file chapter 13 bankruptcy laws, it is important that your payments reach the creditors otherwise the effort of filing bankruptcy will go futile. Make yourself aware on personal bankruptcy information and Federal bankruptcy laws so that you can free yourself of debt very soon by filing for bankruptcy.
Susanna Jackson is a regular writer on bankruptcyonly.com, a US based portal, which provides detailed information onand and other Federal bankruptcy related issues.