How to File Chapter 13

Chapter 13 bankruptcy allows debtors to submit a repayment plan to the court that details how long it will take the debtor to pay off their debt as well as how much will be paid during each installment. The repayment of the debt cannot take any longer than five years though and it cannot take any less than three years. There are a variety of factors that come into play to be eligible to file for Chapter 13 Bankruptcy and there is a lot of paperwork that needs to be filled out when filing for Chapter 13 bankruptcy. Filing for Chapter 13 bankruptcy is a difficult decision for individuals to make and they should make that decision informed.

Requirements for Filing Chapter 13

Self-employed individuals and individuals running an unincorporated business are eligible to file for Chapter 13 bankruptcy. No corporation or partnership is legally allowed to file for Chapter 13 bankruptcy. If any individual has missed a court appearance within the previous 180 for another bankruptcy petition then they are not eligible to file for Chapter 13 bankruptcy. Also, any individual wishing to file a petition for Chapter 13 bankruptcy must have attended credit counseling courses with an approved credit counseling agency 180 days prior to filing. When the individuals attend credit counseling they must file a payment plan with the court if it was developed during the counseling session.

Meet with a Chapter 13 Lawyer

After determining whether or not an individual is eligible to file for Chapter 13 bankruptcy the debtor should consult with a bankruptcy attorney as the second step of the filing process. Filing Chapter 13 is not something that should be attempted blindly, and a bankruptcy lawyer will be able to lead the way. Debtors will have many questions regarding the process, the filing, the paperwork, and the discharge of the debt that a lawyer with experience will be able to answer. A lawyer will represent the debtor during all court appearances as well as during the meeting of the creditors. Bankruptcy lawyers study the ever-changing federal and state bankruptcy laws, staying one-step ahead of the curve so they can effectively help their clients.

Petition the Local Bankruptcy Court

Collecting and filing bankruptcy paperwork takes time and an understanding of what needs to be done. The first piece of paperwork that needs to be collected and filed is the petition by the debtor. The petition should be filed with the bankruptcy court that serves area where the debtor has a place of residence. During the collection and filing process, the debtor must also file:

• Schedule of assets and liabilities
• Schedule of current income and expenditures
• Schedule of executor contracts and unexpired leases
• Statement of financial affairs
• Certificate of credit counseling

Additional Paperwork

Other paperwork that needs to be collected and filed with the court include: a copy of a debt repayment plan that was created during counseling, evidence of receiving payment from employers that was received 60 days prior to filing, a statement that details monthly net income, a statement of any interest that the debtor has in federal or state tuition accounts and a statement of any expected raise in income or expenses after filing takes place. The debtor must provide the trustee assigned to the case with a copy of his or her most recent tax return as well as any other tax returns that the trustee wishes to see prior to the filing. A couple can file Chapter 13 bankruptcy jointly or as individuals. A $235 filing fee and a $39 miscellaneous administrative fee must be paid to the court upon the filing of the Chapter 13 bankruptcy petition.

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