In West Virginia, consumers examine bankruptcy claims to determine what chapter could help them the most. The consumers who have an income that is over the current county median qualify for chapter 13. The chapter offers a repayment plan that allows the consumer to pay off debts over a longer period of time. Bankruptcy lawyers in Romney, WV present consumers with assistance in chapter 13 bankruptcy cases.
What Happens in Chapter 13?
The chapter 13 bankruptcy requires the establishment of a repayment plan. The plan reflects all debts that were included in the bankruptcy claim. It provides the exact value that the consumer will pay for each debt. It also defines how the monthly payments are distributed among the consumer’s creditors.
What Is Disposable Income?
Disposable income is any value that is left over after all monthly requirements are deducted. The court assesses all monthly responsibilities of the consumer, which includes primarily household expenses and accounts such as auto insurance, consumer loans that are in good standing, and rental payments. The expenses are deducted from the consumer’s wages along with the monthly payment for the bankruptcy. The left over value is the disposable income and must be used to pay off debts that aren’t included in the claim.
What Are Exempted Values?
Exempted values are identified according to the type of asset connected to the debt. For example, the consumer receives an exempted value for the home called a homestead exemption. It reflects the value left over after the equity is deducted. The exemption is available if the equity is less than what the consumer owes on the mortgage.
What Protection Is Provided?
An automatic stay is applied to the debts once the bankruptcy is active. This stops the creditors from filing any legal action against the consumer. This includes foreclosure and repossession.
In West Virginia, consumers review bankruptcy options to acquire debt relief. A chapter 13 bankruptcy helps the consumer repay their debts based on a three to five-year plan. Consumers who need to start a claim contact bankruptcy lawyers in Romney, WV through Business Name today.
