With the recent news that the economy is not recovering it seems that the numbers of those filing bankruptcy will continue to rise. This last week the housing numbers were released and as expected were weighed down. Experts are predicting the real estate market to continue on its downward spiral.

With all this bad economic news many people are flocking to the Web to search for options for their finances if they become necessary. Recently, there has been a lot of interest in Chapter 13 bankruptcy.

Prior to the changes of the bankruptcy code back in 2005 when it came to filing bankruptcy, all people thought about was Chapter 7. Now, with the problems Americans are having trying to keep the family home from foreclosure, Chapter 13 bankruptcy has opened a lot of eyes.

When a person decides to file a Chapter 13 bankruptcy, they are basically asking the court to allow the debtor to come up with a reduced payment plan that will be feasible to pay off their debts. The problem is, not everyone will be happy in the way it works out. The bankruptcy court wants to make sure the debtor can afford the payment plan and not one that is setting themselves up for failure.

Level of Trade: A bankruptcy appraisal must be calculated based on the correct level of trade or premise of value. Most bankruptcy cases call for Forced Liquidation Value, which can often provide a value lower than Fair Market Value.

The Chapter 13 bankruptcy confirmation order basically says how much the debtor will pay, for how long and what percentage of the payment will be paying unsecured creditors. After the creditors file a proof of claim the bankruptcy trustee can figure out how much money is needed to pay off the claims according to the Chapter 13 plan. The trustee will take into consideration the secured claims first, such as real estate, legal fees and of course the bankruptcy trustee payment.

After having all the numbers in front of them, the Chapter 13 bankruptcy trustee will see if the bankruptcy plan the debtor proposed is even feasible. If it comes out that the trustee feels it’s infeasible the debtor should contact their bankruptcy attorney immediately to figure out what can be done. Doing nothing at all will end up in a dismissal of the bankruptcy filing.

To protect your bankruptcy petition from being dismissed, contact a qualified bankruptcy attorney to assist you through the process. Your attorney will make sure you qualify for bankruptcy, help you complete and file all the necessary paperwork and even make payments on your behalf. It is important you are up front and truthful about your financial hardship and any assets you own. Hiding important information can lead to bankruptcy fraud, which carries serious legal consequences.

Draag Team Network

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