If you have debt that needs to be reorganized, you should consider filing for a Chapter 13 bankruptcy. This may help make your debt more manageable for you. If you have payments that are too high or want to extend the timeframe for any of your loans, you can do so by filing for this type of bankruptcy. Knowing specific things about the Chapter 13 bankruptcy process may help you when faced with this situation.
Costs
The court fees and administrative costs for filing for this type of bankruptcy are $310 as of June 1, 2014. This amount should be paid to the court that is within your jurisdiction.
If you hire an attorney to help you with this process, the fees will be much greater.
Eligibility
You must be able to prove you are currently employed and can repay the debt that you choose to reorganize. You may be required to provide an old tax return or W-2 statement to the appropriate jurisdiction in which you file.
Additionally, your debt must be within the limits that are set. You must not have more than $383,175 in unsecured debt or $1,149,525 in secured debts to file for this status.
Repayment plan
If you qualify for a Chapter 13 bankruptcy, you will be given a repayment schedule that lists the amount of your monthly payments and when these must be paid. You are legally required to make the payments on time and the appropriate amount should be paid.
Forms
You should be prepared to fill out a number of forms that will help determine if your eligible for filing for this legal status.
Listed below includes the information you should provide:
- The total amount of your income and proof of this amount by way of a W-2 or old tax return.
- The amount of your debt and the creditor to who it is owed. If you own more than one creditor, this should be listed individually.
- A detailed list of your monthly expenses that may include rent, clothing and food.
It is your obligation to show that you can repay your debt when it is restructured by way of choosing this legal status.
Finally, taking charge of your financial life may require the assistance of a Chapter 13 bankruptcy to do so. Be sure to work with an attorney (from Brent Sorenson & Associates, P.C.) in this area if you feel you need legal guidance to complete this process.
