Chapter 13 Bankruptcy

•    Chapter 13 Bankruptcy is outlined in the United States’ Bankruptcy code, which is the formal set of lawused to regulate bankruptcy filings in the United States.

•    Chapter 13 enables an individual to partake in a financial reorganization or repayment plan to satisfy their debts. A Chapter 13 filing is initiated when and individual or business entity faces insurmountable debts.
•    A Chapter 13 filing enables the filing party to reorganize their debt payments through a court-approved plan. This plan differs from a Chapter 7 filing which offers an immediate and complete relief of oppressive debts through a liquidation process.
•    A Chapter 13 filing creates a repayment plan for the filing party; the repayment plan offers more time and the ability to fulfill a debt obligation through incremental pay periods. As a result of this structure, a Chapter 13 filing can effectively halt foreclosures; a foreclosure would be reinstated upon completion of the restructured payment plans.
•    A Chapter 13 program documents, the treatment of all liens, debts, and the secured status of all the entity’s assets and liabilities owned or owed by the debtor. To file for Chapter 13, the entity must meet the following requirements: the entity must provide a number assets or payments to the underlying creditors that would equal a similar amount had the entity filed for a Chapter 7 bankruptcy liquidation. Additionally, the debtors must also promise to pay the creditors in full, or commit all disposable income into their Chapter 13 restructures plan for at least three years.

Filing Process for a Chapter 13 Bankruptcy

•    Before initiating a Chapter 13 filing, you must first gather all information concerningyour underlying debts.
•    The following documentation is needed for filing: revolving credit accounts (such as credit cards or medical bills), all forms of credit involving capital (i.e. house or car note) and lastly all taxes owed to the state or federal government.
•    In addition to this information you must alsoobtain court documents—these documents are necessary if someone is suing for failure to fulfill a debt obligation.
•    Before filing for Chapter 13, you must rule out all other options. Once you have decided that a Chapter 13 is the best option, you must meet with an attorney.
•    Regardless of your search method, you must include an attorney in your filing because Bankruptcy is a complicated procedure.
•    To initiate the claim you must obtain a certificate from a credit counseling agency. The credit agency will take your current income and evaluate the figures with your current payments and living expenses.
•    Once achieved, you must file a motion in bankruptcy court. Your legal professional will file the motion, but you must satisfy all fees that are required on the claim.
•    To enter into the Chapter 13 filing you must attend a scheduled hearing. A representative of the trustee will swear the documents and will go over the determined budget with the attached fliers and the incorporated legal professionals.