20 Oct2014
Written by CFB Blogger. Posted in Blog
When an individual or business files a Chapter 13 bankruptcy, he needs to repay creditors in accordance with a court-approved repayment plan, normally within a three-to-five year period. Under Chapter 7 bankruptcy, most property, such as stocks, real estate investments, business inventory and equipment and vehicles must be sold in an attempt to repay at least some of the monies owed to creditors.
Since the enactment of the Bankruptcy Abuse Prevention Consumer Protection Act of 2005, debtors whose income surpasses certain levels must file for Chapter 13 bankruptcy as opposed to Chapter 7 bankruptcy.
Loss of employment, divorce and major illness are the main reasons consumers file Chapter 13 bankruptcy opines Amy Fierro, assistant vice president of lending at
First Source Federal Credit Union. She states, “’Sometimes, it’s the only option and it doesn’t have to be a bad thing. The main thing is to keep a good relationship with the lender throughout the process … and not to fall back in to old patterns once you emerge.’”
Reporting for
www.uticaod.com, Philip A. Vanno writes that, according to
Administrative Office of the U.S. Courts, the
Northern District of New York State, Oneida and Herkimer counties rank ninth in the country in successfully emerging from Chapter 13 bankruptcy. Of the 2,360 cases closed in 2013 involving non-business, debtors in the Northern District, which covers over 30 counties in the Utica, Syracuse and Albany areas, 1,600 were completed; that 67.8% completion rate was 5.6% higher than in 2012.
Robert J. Rock, a bankruptcy attorney who practices in Albany, New York, stated in the article that, “’A financial fresh start is clearly within reach in upstate, provided the debtors obtain experienced counsel who can help them propose a feasible plan that provides the required treatment of creditors’ claims.’”
In the same news report, Rock avers that “the success rate is so high in the Northern District because of a combination of several factors, including judges who have been trustees and worked with trustees in the past, current trustees who are compassionate and willing to work with debtors, quality attorneys representing both sides who work in unison, and a population with a strong work ethic that doesn’t want anything handed to them. Having the high ranking that we do suggests that all of these synergies are firing together and allows a debtor to be more confident that the process will work for them. The chances are dramatically better that you will be able to save your home and other assets.’”
• The Northern District of New York saw 1,600 completed Chapter 13 bankruptcy plans out of 2,360 closed cases last year. That 67.8% completion rate is 5.6% higher than in the previous year, to rank the district ninth out of 94 federal judicial districts.
• The
Western District of New York finished fifth; the two upstate districts were well above the national rate of 45.2% only bested by the districts of Vermont, eastern Oklahoma, North Dakota and the Northern Marianna Islands.
• The
Central District of California’s 12.5% completion rate was the worst across the country.
For experienced and knowledgeable Chapter 7 or Chapter 13 personal bankruptcy assistance, trust the attorneys from
Client First Bankruptcy who have helped satisfied clients discharge their debt. For your free initial consultation, please call our knowledgeable and compassionate bankruptcy representatives at 800-383-6004. And log onto
www.clientfirstbankruptcy.com for vital and timely bankruptcy information 24/7 so you can get the information you need at your convenience.
