Chapter 13 Bankruptcy

Chapter 13 Bankruptcy

Jan 03

Chapter 13 bankruptcy is an option where you are given the chance to keep your properties, but in return you have to reorganize your debts in order to draft a payment scheme that you will adhere for a certain amount of time, say three to five years. This form of bankruptcy is not for everyone, as it requires you to use your own income to repay parts of your debt, thus it is important for you to prove in the court that you have the ability (and income) to keep up with your payment responsibilities.

Repayment plan is the most important aspect of Chapter 13 bankruptcy. This will plan out how much you will pay for each debt, as well as the way you will pay them. It will be up to you and the courts to determine your repayment plan, and this will also depend on you income and the debts you have. If have stumbled upon an issue where you are unable to pay for your debts, you will be given an option to modify your plan or ask the court to have some of your debts discharged, otherwise you might convert to a Chapter 7 bankruptcy.

After completion of your repayment for Chapter 13 bankruptcy, you will have to provide evidence that you are up-to-date with your alimony or child support obligations and have attended and completed a budget counseling course (form an approved US Trustee) in order to receive a bankruptcy discharge.

Filing for Chapter 7 Bankruptcy Without a Lawyer

Filing for Chapter 7 Bankruptcy Without a Lawyer

Oct 04

Choosing to file for bankruptcy can be a difficult decision, particularly since it can affect your records for a certain period of time; however it may be the best option because it gives you the chance to organize your finances and clear up your debt, enabling you to start over.

One of the many options is Chapter 7 bankruptcy, as it helps in discharging almost all of the debts. Another benefit of Chapter 7 bankruptcy is that it helps keep the creditors from taking over the properties, such as have homes foreclosed, and avoid any harassment from them. With the limited amount of money available, a lot of people who choose to file for Chapter 7 bankruptcy choose to file them themselves. Here are pointers on how to do exactly that.

After confirming that you are eligible for Chapter 7 bankruptcy, the next action is to have at least three (3) copies of your credit report, since most of the credit bureaus do not have a copy of them and there is a possibility that one report may be different from the other. Ensure that your credit report have the addresses of every creditors since you need them in your forms.

Make sure to complete your mandatory credit counseling course (you’ll be given a certification after completing it), and the course typically costs about $30. Get this counseling course from a credited company. Then find out which Federal Court jurisdiction you belong, and then complete your necessary bankruptcy paperwork. With your completed paperwork and certificate of completion from the counseling course, file your petition to the bankruptcy clerk, making sure you have the date for the “meeting of creditors”.

While waiting for the meeting with the creditors, make sure you respond to all the letters sent to you (either from the trustee or the court). Bring together things such as past two months pay stubs and bank statements, last year’s tax forms, and any real estate paperwork that may be asked by the bankruptcy trustee. Make sure you attend the meeting of creditors and answer their questions honestly.

Within 45 days after the creditors meeting, you should complete the post-filing of personal financial management instruction course (which cost $30) otherwise you might run the risk of having your case dismissed if you have failed to complete it. After receiving your certification of completion of this course, submit the certificate as you have been instructed in your letters, then wait until you receive the final correspondence stating that your debts have been discharged.

This may seem easy to follow, however it is always strongly advised to get a lawyer to help with these process. Many things can go awry, and you might not be able to defend your case properly. Having legal representation present to guide and advise you on the next step will guarantee that your case will end in a positive result.