A Bankruptcy Lawyer Can Help You File a Chapter 13

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A Chapter 13 can provide debt relief, and a bankruptcy lawyer can help you through the process.  This is an excellent option for families seeking debt relief that also want to stay in their home.  With a Chapter 13 filing, people can stop foreclosure and make their delinquent payments over time. This allows families to stay in their home and start making mortgage payments on time again instead of being forced to make up the delinquency in one lump sum payment. 

In Chapter 13, a payment plan can be reached where, apart from your mortgage, one monthly payment is paid then distributed to your creditors according to the plan.  This lasts for a period of years, based on what you propose and what the judge approves.  Your creditors typically get paid a reduced amount than if you had the money to simply pay them off.  This makes it possible to get out of debt while still paying your creditors something.  Once the plan is approved, you are obligated to stick with it by making monthly payments on time.  Otherwise, your creditors can take you back to court. 

There are several rule and procedural issues that you need to know in order to get your Chapter 13 approved.  Hiring a skilled bankruptcy lawyer will help you through this process. For example, you must complete credit counseling within 180 days prior to obtaining your bankruptcy.  A copy of your course completion must be included with your initial filing in order for it to be processed. You must also file recent pay stubs or income documentation, a statement of your monthly net income and whether that is expected to go up or down, along with copies of tax returns.  At the time of the filing, a fee must also be paid to the court, typically $235 and $75 for processing. 

Your bankruptcy lawyer will also help you to fill out the forms and input the required information.  This includes:

1.    A list of who you owe money to and the type of loan that it is.  For example, a credit card with a balance of $35,000 owed to Bank of America.  Gather copies of your most recent statements to show your attorney so that the paperwork can be completed faster. 

2.    How much money you make, how you make it, and how often you are paid.

3.    A list of your assets and property. This would include your home, cars, boat, etc.

4.    All of your monthly living expenses.  This needs to be realistic, not conservative.  It should include everything that you pay in order to sustain including gas, food, and medication in addition to things like utility bills. 

Your income information will determine how much money you can use to pay towards debt payments on a monthly basis.  This is important because the judge needs to feel confident that you are acting in good faith and making the best effort to repay your debts.  Make sure that your income and expenses are represented accurately before filing your petition.  An experienced bankruptcy lawyer can help you to complete the forms and to get your bankruptcy approved.