Chapter 13 Bankruptcy
Chapter 13 bankruptcy is a debt consolidation and repayment plan. Chapter 13 is different from chapter 7. It has different benefits and qualifications. There are many good reasons for choosing Chapter 13 Bankruptcy over Chapter 7.
First, it is more appropriate for people with more assets. This is particularly true if you have assets that are non-exempt or where you have too much equity.
Second, Chapter 13 is required for households that have gross annual income above the median income. to undergo Chapter 13. In addition, Chapter 13 Bankruptcy offers protection for liable co-signers.
Finally, chapter 13 allows you to restructure secured debts like a car loan or a mortgage. This is a very powerful tool that allows you avoid foreclosure and repossession, ensuring that you can keep your assets.
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- Devise an approved repayment plan that includes missed payments.
- Remain current on your mortgage.
First, you must file a petition with the bankruptcy court where you live. The court will ask for the following information when you to file:
- A list of your assets and liabilities.
- A list of monthly existing income and expenses and other information if you are expecting an income increase after the file date.
- A list of executory contracts and unexpired leases
A statement of financial affairs per- Fed. R. Bankr. P. 1007 (b). - A certificate of credit counseling.
- A copy of debt repayment plan created via credit counseling.
- Proof of employer payment, if it was made 60 days before the petition file date.
- A list of interest on federal or state qualified tuition or education per 11 U.S.C. 521.
The chapter 13 trustee will meet with your creditors anywhere between 20 to 50 days after the petition is filed. If the meeting is held in a place that does not have an assigned U.S. trustee or other bankruptcy staffing, the meeting must still take place within 60 days per Fed.R.Bankr.P. 2003(a).
You will be placed under oath during this meeting and questioned by both the trustee and your creditors. You are required to attend the meeting and answer all questions about the proposed terms of the plan per 11 U.S.C. 343. The best way to ensure everything goes smoothly is to complete all paperwork, and make sure all info is factual. Also, consult with a lawyer.
Once the meeting is over, a hearing will be scheduled to discuss your chapter 13 repayment plan. Your case trustee and interested creditors are allowed to attend the hearing.
There are particular debts that can be discharged with Chapter 13 Bankruptcy, and not with Chapter 7 Bankruptcy. They include the following:
Debts connected with a willful and malicious injury to property.
Debts incurred to pay tax obligations that can’t be discharged.
Debts incurred due to divorce or separation property settlements. 11 U.S.C. 1328(a).
Choose Your Payment
We let you choose a low cost upfront payment–that’s how committed we are to making filing bankruptcy as flexible as possible. Our goal is to making filing bankruptcy as simple, affordable, and convenient as possible. That’s why we’ve spent so much time finding ways to make it easier for you.
Provide Documents
Before we can file your case we will need copies of essential documents & information. You get this together now, so that you have everything in order to file quickly.
- Copy of your driver’s license for each party filing.
- Copy of your social security card (or original W-2) for each party filing.
- The last 7 months of all pay for each party filing.
- Copies of your state and federal tax returns for the 2 most recent years filed.
- Completion of our Questionnaire.
- Completion of the credit counseling course (you will receive instructions in a subsequent email)
Stop Creditors
As soon as your case is file the bankruptcy automatic stay immediately becomes effective stopping garnishments, creditor harassment, repossession, foreclosure, eviction and other creditor collections.