How To File For Chapter 13 Bankruptcy
Ensure that a Chapter 13 is the best choice for you
Before you determine how to file for a Chapter 13 bankruptcy, you first find out if it is the best choice for your specific financial situation. The two most commonly filed consumer bankruptcies are a Chapter 7 and a Chapter 13. Before you file a Chapter 13 bankruptcy, it is important to determine whether you should file a Chapter 7 or a Chapter 13.
Examine Your Debt
Before you file a Chapter 13 bankruptcy, it is essential make sure that your debt is dischargeable by filing a Chapter 13. Another important factor to take into consideration is your ability to propose a feasible Chapter 13 bankruptcy repayment plan.
Analyze Your Income
Since a Chapter 13 bankruptcy requires you to make monthly payments, you have to earn a high enough income in order file a Chapter 13. This is usually determined by the means test.
Determine The Value of Your Property
Prior to filing a Chapter 13 bankruptcy, it is important to determine how much of property you own, and what property is exempt. This will have a direct impact on the amount of your repayment plan.
Filing out the Chapter 13 bankruptcy forms
Once you have determined that you are eligible for a Chapter 13, you are required to enter all of the relevant information on official bankruptcy forms. In addition to completing the standard paperwork, you also have to submit a proposed payment plan to the Court.
File your Chapter 13 Bankruptcy Case
Once you have ensured that all of your paperwork is filled out accurately, file you case with the Court that has jurisdiction on the area in which you reside.
Attend Two Hearings
A few weeks after you file a Chapter 13 bankruptcy, you will meet with a Trustee to go over your forms and your plan. Your creditors may also attend this meeting to ask you questions or negotiate the terms of your plan. You will also attend a confirmation hearing during which a judge may confirm or deny your plan.
Make Payments on Your Chapter 13 Bankruptcy Payment Plan
Once your Chapter 13 bankruptcy payment plan is confirmed, your payments will due within 30 days. If any problems arise during your case, you may have to go back to Court. If you miss any of your payments, your case may be dismissed.
Get Your Chapter 13 Bankruptcy Discharge
Upon completion of your plan, provided that you did not miss any payments, you will be granted your bankruptcy discharge. This means that you will no longer be obligated to pay back any remaining balances on the unsecured debts listed on your plan.