When you opt for Chapter 13 Bankruptcy San Antonio, the trustee will take care of paying your debtors on behalf of you. Before that, you should agree to the terms of repayment. The trustee will analyze your present financial condition and recommend the vest practices of loan repayment. You have to sign the repayment documents which come as attachments to the Chapter 13 Bankruptcy San Antonio petition form.
Chapter 13 Bankruptcy San Antonio – Court Proceedings
Court proceedings will happen after you have submitted the Chapter 13 Bankruptcy San Antonio. The trustee will present the case from the neutral point. Your attorney will present your case. Your debtor’s attorney will argue in their favor. The court delivers the verdict based on all the arguments and case presentation.
The verdict will be in your favor, depending on the evidence and documents of your attorney. If your financial conditions are not good enough, you may be exempted from repaying the debts. According to Chapter 7 Bankruptcy San towing San Antonio, your assets may be sold to repay the debts. The possession of assets depends on their value in comparison with the maximum ceiling set by the trustee. You will still have the assets required for your survival and sustenance of your family.
If you have sufficient resources to repay, but your present financial conditions are poor, the court may give you an option to pay in installments. The trustee will decide the monthly repayment value and the repayment period. Then you don’t have to lose your assets.
Bankruptcy San Antonio – Trustee Responsibility
The court trustee will take the responsibility of distributing the amount to your debtors every month. You have to deposit the monthly installments to his account. In most of the cases, you may be exempted from interest and another statutory amount you may owe. You have to repay only the principal.
The net debt value could be much higher than what you have to repay. The court trustee can decide based on your present financial condition. He can also talk to the debtors and convince them to reduce the principal.
Chapter 7 Bankruptcy or Chapter 13 Bankruptcy San Antonio – Priority Claims
Whether you choose Chapter 7 Bankruptcy or Chapter 13 Bankruptcy San Antonio, the priority claims will be based on the trustee’s decision. The general repayment terms depend on the principal, net claim, and the collateral security you have pledged.
Secured claims of your creditors will depend on the net debt amount and the collateral security value. If you want the assets to be retained without selling, then your attorney should convince the court that you can repay the agreed debt within the scheduled time.
Unsecured claims are different because there is no collateral security. Your creditor may agree to reduce the debt amount if your attorney can convince the court about your repayment capacity.
The applicability of Bankruptcy San Antonio regulations in the case of chapter 7 and chapter 13 are in your favor. You should consult an experienced attorney to present your petition in the court for ensuring the protection of your assets.