Do you have mounds of insurmountable debt that you cannot repay based on your current payment plan? This can be extremely stressful as you try to determine how to pay off the debt while still affording your daily living expenses.
Fortunately, you have options. One solution can be to file for Chapter 13 bankruptcy.
Learn what’s required during this process, and how a bankruptcy attorney can help.
Take a credit counseling course
Before filing for Chapter 13 bankruptcy, you will need to take a credit counseling course from a court-approved location. This is to show the court you are serious about learning from your mistakes and will avoid the same financial errors in the future.
Complete a Chapter 13 bankruptcy petition
To apply for Chapter 13 bankruptcy, you will need to complete the required paperwork. This can include a bankruptcy petition, as well as a disclosure of your debts, property, income, and other assets. Once you file all of your paperwork, your creditors will not be able to take collection actions against you. While some exceptions may exist, most debtors will not collect due to a court stay.
Propose a repayment plan
In Chapter 13 bankruptcy, you will need to repay your debts according to a repayment plan. With your attorney, you need to submit a proposed plan to the court to explain how you plan on repaying your debts, and when.
File Your Tax Returns
You will need to provide your most recent tax returns to the court to show your income. You will also need to submit proof that you filed taxes for the past four years.
Work with a trustee
The court will assign a bankruptcy trustee to your case. This person will review your repayment plan and make sure it meets the requirements. He or she will also collect your payments and distribute them to your creditors. The trustee may also check your monthly income statements and expenses.
Make a payment
You must make a payment according to your repayment plan one month after filing your bankruptcy papers. You might be making this payment before your plan is approved, but it’s still necessary to submit the payment to your trustee.
Go to a meeting of creditors
The bankruptcy trustee will hold a meeting of creditors. During this gathering, the trustee and creditors can ask you questions regarding your finances and your repayment plan. It’s essential to have your bankruptcy attorney attend this meeting.
Attend a confirmation hearing
If any creditors or your trustee have issues with your repayment plan, they will be addressed during a confirmation hearing. You and your attorney must attend this court hearing. If all concerns are addressed, your plan can be approved by the court during the hearing.
Adhere to your payment plan
After your plan is confirmed, you must follow it and make the necessary payments to your trustee on time. During your repayment plan, you might be asked to provide proof of income and other financial documents. When your repayment period ends, the court may discharge any remaining debts you might still have. This may be done through a hearing, or you could be notified via mail.
Take a debt education class
Before your case is closed, you may need to complete a financial management class. This can be in addition to the credit counseling class you took before filing for Chapter 13 bankruptcy.
Contact an Attorney
If you are sitting on mounds of debt and want to file for Chapter 13 bankruptcy, it’s crucial to hire an experienced attorney to help you through the process and get the money you are owed. Don’t let debt ruin your life. Call (405) 529-9377 for a free case review.