Sometimes, there is usually a choice on what one can keep after the conclusion of a bankruptcy case. This is commonly referred to as the exemption scheme in which an individual chooses the items or assets they choose to retain. This is only applicable under the liquidation chapter and the debtor can choose the exemption scheme only when they have submitted a list of all the available assets together with an approximate value. Once this is done, through guidance, the debtor can choose what to keep or not.
Bankruptcy does not provide for the clearing of secured debts such as mortgages, alimony, child care or outstanding tax on a property. Under this law, reaffirmation is allowed. The debtor must reaffirm the asset in question only after he, under oath is questioned about his financial affairs in the presence of creditors and other involved parties.
Insolvency allows an individual, partnership or cooperation to file a petition under chapter 13. This is through making a payment plan towards the creditors within three to five years. Many of the people who file a petition under this law usually have those debts that chapter seven cannot wipe away. These could be mortgages on homes they would love to keep due to sentimental reason. They could also be child support and alimony or large amounts paid towards student loans.
In the case of bankruptcy, the debtor will require a stable amount of money after monthly expenses such as food, transport and other expenses have been deducted. Once the petition is filed together with a repayment plan, a trustee goes through it for flexibility and sends it to creditors to have it approved. If approved one can keep the assets.
Peter Gitundu Researches and Reports on Bankruptcy. For More Information On Bankruptcy Filing, Read More Of His Articles Here Bankruptcy Filing. You Can Also Add Your Views About Bankruptcy Filing On His Blog Here Bankruptcy Filing
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