Chapter 13 Bankruptcy is a legal process that is designed to help people who are struggling with debts. The idea behind this process is to allow people to get out of debt while keeping them from having to file for bankruptcy. Chapter 13 protects someone who has filed for bankruptcy and gives them a second chance to re-establish themselves. However, there are certain people who will always benefit from Chapter 13 and other people who should only use it as a last resort. If you are someone who is in need of Chapter 13 Bankruptcy assistance and has a few things that will keep you from benefiting from this type of filing, then read on.
The people who benefit from chapter 13 bankruptcy are often lenders and credit card companies. Lenders love this because they do not have the option of collecting a large amount of debt from someone who does not intend to pay it back. The best thing for a lender is if a person has filed for chapter 13 bankruptcy and has been approved, then the lender can force that debtor to pay back the money. However, a creditor may be reluctant to collect any debt if it is not worth the risk.
A company that has received recognition from a reputable source and has been in business for a few years can also benefit from those who benefits from chapter 13 bankruptcy. This means any large new investment or expansion can be considered a major benefit for the company. A company that has grown by more than a few million dollars will most likely benefit from those who benefits from chapter 13 bankruptcy.
Another group that benefits from chapter 13 bankruptcy is real estate agents and brokers. Real estate agents will usually benefit if they are willing to sell a property to an individual rather than waiting for someone to want to purchase it. Even if someone buys the home, there is still the risk of the home not being sold in a timely manner. With the help of a broker, he or she can place the seller in direct negotiation with buyers. The broker knows the laws and can assist in this process.
An accountant who benefits from chapter 13 bankruptcy can also benefit. This includes individuals who have been making regular payments on their businesses but have suddenly found themselves unable to work because of the current economic situation. They may be owed money by a business that no longer exists. If they sell the business, they could be able to continue making these payments while also being paid in cash. These individuals may also receive a lump-sum settlement, which is much faster and easier than having to go through a lengthy court proceeding.
An individual who benefits from chapter 13 bankruptcy may be a family member of someone who has passed away. Many of these individuals are widows or widowers who receive alimony or child support. These payments may become lower if the home of the deceased has been sold and no one is living in it. The court does not want to reduce alimony or child support if the individual who receives it has not been able to pay it. However, it can be done. The court will determine an amount that the person is entitled to based on the equity balance remaining in the home.
One example of a person who might be entitled to these benefits is someone who is in a personal injury lawsuit. If the plaintiff won the lawsuit, he or she would be entitled to a certain amount. If someone was injured in another car accident caused by another driver, he or she might be eligible for additional compensation. It is important to remember, though, that the amount won’t be anywhere near what the person might be entitled to if the case went to trial. It will just be a smaller part of the total settlement.
There are many different situations when someone may benefit from who benefits from chapter 13 bankruptcy. There are even cases where a person can benefit right after being discharged from a chapter 13 bankruptcy. This can happen after someone has finished paying all of his or her debts and is about to start anew. He or she will not have to pay child support or alimony anymore and can just move forward with their life without any restrictions.
This post was written by Trey Wright, one of the best bankruptcy lawyers in Tallahassee FL! Trey is one of the founding partners of Bruner Wright, P.A. Attorneys at Law, which specializes in areas related to bankruptcy law, estate planning, and business litigation.
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