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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
Resource:
American Bar Association: Bankruptcy and Insolvency Litigation Committee
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