Chapter 13 has now become the more popular bankruptcy to file for. This is because it is sometime easy to be approved for then, chapter 7. Chapter 13 is a good bankruptcy to consider if you have property or assets you would like to keep. It is also the type you will file for if you want to stop foreclosure on your home.
This article is to give you a general idea of how to file chapter 13 bankruptcy. Keep in mind that different states may have rules and regulations for filing so talking to bankruptcy attorney in your state is important.
1. You must attend an approved credit counseling class under the United State Trustee’s Office. You cannot do anything else until you get a certificate that says you have taken the class. A lot of people fret over having to go to this class, but actually it should be a good learning experience and help keep you out of future debt.
2. Below are the items you will want to file with court
* The certificate for the credit counseling class
* Federal tax return for previous year
* list of assets and liabilities
* current income and expenditures
* contracts of un-expired leases
* statement of financial affairs
* a debt repayment plan (this is what you will accomplish in credit counseling class)
* Evidence of payment from employers
* statement of monthly net income and any anticipate increase
* Record of any interest that you may have in federal or state qualified education or tuition accounts.
3. Below are the things you must provide information to the case trustee:
* A copy of tax return for most recent tax year
* Tax returns filed during the case
* Tax returns for prior years that had not been filed when case began
* A list of all creditors and the amounts and nature of their claims
* The source, amount and frequency of your income
* A list of all your property
* Detailed list of monthly living expenses
4. When the filing is done you will be appointed an impartial trustee to administer the case.
5. After 20 to 50 days after you file the your trustee will hold a meeting of creditors. This is where you meet with all you creditors and answer any questions they may ask.
6. Unsecured creditors will file their claims with the court within 90 days of the creditors meeting
7. After the meeting you, the trustee and creditors will go to court to hear the repayment plan.
8. The court will then decide if your bankruptcy is approved.
If your do receive a bankruptcy discharge this is a good time to start fresh and stay on top of your payments. Make sure if you are filing for Chapter 13, you can keep up with the payments, take a class or read up on how to set up a monthly budget for yourself and then follow it.…