How to File for Chapter 13 Bankruptcy


Bankruptcy presents claimants with a real chance to eliminate their debts and become debt-free when possible. With chapter 13, the claimants can start a repayment plan to pay off their debts. The plans also provide an automatic stay to prevent legal action from creditors.

Get Records of All Debts

The first step is to get all records of their debts to calculate their total debt volume. When filing for chapter 13, it is vital to know how much debt the consumer has and set up a repayment option that will give them affordable payments each month. The attorney will help them figure out a better plan based on their current income, and the plan will last between three and five years. Some debts will be discharged by the court.

Get Income Statements for the Last Six Months

Next, they will need to get income statements for the last six months to help the court calculate their annual income. The bankruptcy plan requires them to have an income that is higher than the median income for their household size to qualify for the bankruptcy chapter.

They will need to provide evidence of their income by submitting at least two years of tax returns if they are self-employed or six months’ worth of pay stubs. If they do not have an income that is higher than the media for their income size, the claimant will not qualify for the bankruptcy case.

Submit an Application to the Court

They will submit an application for bankruptcy to the court after they qualify for chapter 13 along with their list of debts and the repayment plan set up by their attorney. The court will review the plan to ensure that it meets all the requirements under bankruptcy law, and the court will decide how long the plan will last.

Attend the Meeting of the Creditors

The meeting of creditors gives the creditors a chance to determine if they want to include their debts through the bankruptcy claim. The creditors have a chance to refuse to be added to the claim, but the court has the right to determine what accounts are included, and the judge decides what debts are getting discharged through bankruptcy. For example, unsecured credit cards are likely to get discharged, but government loans such as student loans are not discharged. Claimants can learn more about bankruptcy by visiting now.

Fulfil All Obligations Outlined in the Claim

The claimant must fulfil all obligations as outlined in the claim. This means that the claimant must pay all their monthly payments to the court. If they miss a payment, the claim could be discharged and the claimant will be responsible for all debts immediately.

Bankruptcy could be a real help for some claimants and give them a chance to eliminate high volume debts and give them a chance to rebuild their credit. With chapter 13, the claimants pay payments each month that are applied to each creditor over a period of three to five years. Claimants can learn more about the cases by contacting an attorney right now.