Concern states are the ones granted unique standing because of the bankruptcy law, eg most taxation and will set you back away from bankruptcy proceeding
Following meeting out of creditors, the latest debtor, brand new chapter 13 trustee, and those creditors who would like to sit in will come so you’re able to courtroom having a paying attention towards debtor’s section 13 fees package.
Repayments to particular secure creditors (i
Unless of course the latest judge has an expansion, the brand new borrower need document a fees plan into petition otherwise in this two weeks adopting the petition was submitted. Fed. R. Bankr. P. 3015. A plan must be filed having courtroom recognition and really should provide to have money away from repaired amounts into trustee for the a typical basis, typically biweekly or month-to-month. The latest trustee next directs money so you’re able to creditors depending on the terms of the plan, which could provide loan providers lower than full commission to their states.
Discover three brand of claims: top priority, shielded, and you will unsecured. (3) Safeguarded states are those which brand new creditor gets the proper take back specific possessions (we.age., the brand new equity) in case the debtor does not pay the hidden loans. In contrast to protected states, unsecured states are those people wherein new creditor has no unique legal rights to collect facing sort of possessions belonging to the fresh debtor. Continue reading “The new Part thirteen Plan and you can Confirmation Hearing” »
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