ANSWERS: 1
  • Contemplating filing for a Chapter 13 bankruptcy requires that you to understand the basic elements of this type of proceeding. You need to familiarize yourself both with a Chapter 13 plan as well as a motion for valuation.

    Function

    The function of a Chapter 13 plan is to permit you the ability to pay off your creditors in two to five years.

    Assets

    As part of resolving debt issues, a determination is made as to the value of your property. If a creditor or the bankruptcy trustee questions the assigned value of an asset, a motion for valuation is filed to seek an independent appraisal.

    Time Frame

    A motion for valuation is filed before a final Chapter 13 plan is approved and implemented by the bankruptcy trustee.

    Effects

    The effects of a motion for valuation is that a change in the specific value of an asset occurs. This can result in a more valuable and non-exempt asset being sold to satisfy some of your debt.

    Warning

    When facing a motion for valuation, obtaining legal assistance is wise. Protecting your interests in such a process oftentimes is best done through a qualified bankruptcy lawyer.

    Source:

    U.S. Bankruptcy Code: Chapter 13

    Cornell Law School: Bankruptcy Overview

    "Chapter 13 Bankruptcy: Keep Your Property & Repay Debts Over Time;" Robin Leonard & Stephen Elias; 2008

    Resource:

    American Bar Association: Bankruptcy and Insolvency Litigation Committee

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