If you have recently lost income due to being out of work or you have just become overwhelmed by debt, filing bankruptcy may be a good solution for your family and finances. While there are different bankruptcy solutions available, chapter 13 is the best option if your finances are sufficient to pay some of your debts. Unfortunately, most people do not understand the process of filing, since it requires a good amount of planning and research. This guide will walk you through the entire process of filing chapter 13.
Once you decide bankruptcy may be an option for you, consult a bankruptcy attorney. Many people are able to file without the help of an attorney, but this legal professional will ensure you file the right type of bankruptcy in the most lawful and effective way. Your attorney will also help walk you through the entire process.
Most people feel they do not need counseling to help them manage their finances, but it is an imperative element for your financial health. From budgeting your basic living expenses to using credit wisely, credit counseling is truly beneficial. In addition to its benefits, credit counseling is also a requirement if you want to file bankruptcy. To qualify for bankruptcy, you must show proof that you have enrolled and completed a credit counseling program within 180 days before filing.
After counseling, your attorney will work with you to design a plan to pay down your debts. This proposal will include the total balances of your debt and a realistic amount that will be paid to the bankruptcy trust each month.
After the proposal has been designed, your attorney can file a chapter 13 petition with the courts. The court system will appoint a trustee to your case. This trustee will review the proposal to determine if you have met all requirements for the bankruptcy to be approved.
Once the trust approves your proposal, creditors will be notified that you are filing chapter 13 bankruptcy. This places an automatic stay on your debts, preventing creditors from collecting on your accounts.
After the automatic stay is placed into effect, the 341 Meeting will be scheduled. This meeting involves you, your attorney, and your creditors. The repayment plan will be discussed during this meeting. Your attorney will discuss whether you and your attorney will both need to attend the 341 Meeting. In many instances, the meeting will occur through a teleconference.
Last, but not least, a confirmation hearing will be arranged. You and your attorney will attend this meeting, which determines the final decision on your bankruptcy petition. Once confirmed, your bankruptcy will be in place and you will be required to start making your monthly payments to the trust soon after.
Filing chapter 13 may not seem like a pleasant task, but it can offer you a fresh start in regards to your finances. This guide and your attorney's help will walk you through the entire process of filing bankruptcy.