There comes a time when many people have no choice but to seek bankruptcy protection from their creditors. If going through a debt consolidation specialist does not result in payments low enough to maintain a reasonable standard of living. When debts are overwhelming, bankruptcy through Chapter 7 may be their only alternative.
Many people may prefer to seek protection under Chapter 13 bankruptcy but before a court will approve the plan, it will have to be shown the individual can meet the financial demands of the plan. If a person is unemployed with no appreciable assets, going through a court repayment plan will not be an option. Additionally, if the persons income is not sufficient to allow for living expenses while paying off their debts, it will also be rejected.
As an example, a person with $30,000 in debt, wanting to enter a Chapter 13 repayment plan for five years, the payments needed to satisfy the plan would be $500 per month. If their monthly income does not account for that amount plus approved living expenses, then the plan will be rejected.
Additionally, some creditors may be reluctant to enter into a loan consolidation plan through a private...
To view and download this full PLR article, you must be logged in. Registration is completely free. Once you create your account, you will be able to browse, search & downlod from our PLR articles database of over "1,57,897+" on 1,000's of niches and 200+ categories without paying a penny. Click here to signup...
