What You Need to Know About a Chapter 13 Bankruptcy
When people think of filing for bankruptcy, they often assume that this last-ditch effort for financial survival will result in the loss of their property, such as a home. However, a Chapter 13 bankruptcy allows debtors to stop foreclosure efforts by allowing them to repay a portion of their debts through a structured repayment plan that can last anywhere from 3 to 5 years.
In order to be eligible for a Chapter 13 bankruptcy, one’s secured and unsecured debts must be below a certain amount, according to the consumer price index, which periodically changes.
The Process of Filing for a Chapter 13 Bankruptcy
Before you get started, make sure to contact a bankruptcy attorney. The process of filing for Chapter 7 or Chapter 13 bankruptcy can be complex and the smallest mistake can cause a setback that costs time and money. Additionally, you will have to pay some fees to file for bankruptcy, such as an administrative fee.
You will also need to gather the following:
- A complete list of your creditors and the amount you owe
- Full disclosure regarding your income
- A complete list of the property you own or any leases and contracts in your name
- A complete breakdown of your living expenses
- Your tax information, including your recent federal tax return and any unpaid taxes
Moreover, those who file for a Chapter 13 bankruptcy must undergo credit counseling within 180 days of filing for bankruptcy. After filing, you will also be expected to propose a repayment plan, which will either be accepted or denied by the court, though your creditors are allowed to raise any objections they might have to it.
Throughout the course of your repayment plan, you will be expected to work with a bankruptcy trustee. The bankruptcy trustee will distribute the payments you make to your creditors, relieving you of any obligation to deal with them directly. If at any point during your repayment plan, you cannot make your payments or wish to accelerate your payments, you must inform your bankruptcy trustee to request a modification.
Speak with a Bankruptcy Attorney Today!
If you are overwhelmed by debt and seeking bankruptcy to achieve some relief from this stressful predicament, contact the team at Campbell Law Firm, P.C. for the experienced legal advice you need to navigate the process of filing for a Chapter 13 bankruptcy.
Contact us today at (903) 345-0031 to schedule an appointment with a knowledgeable member of our team.