During life, money can get tight and create some tough times. When money is running low and individuals can barely stay afloat, they may feel hopeless. They may think they have run out of options and have no other ways to get back on their feet. If you have experienced this, you should consider filing for bankruptcy. For individuals, the most used options are Chapter 7 and Chapter 13 bankruptcy. Through bankruptcy options, you may be able to prepare for a better future.
How is filing for Chapter 13 bankruptcy done?
The process of filing for Chapter 13 bankruptcy is similar to that of Chapter 7 bankruptcy. Before filing for this kind of bankruptcy, you will need to go through credit counseling 180 days before you file. If you have previously filed a petition that was dismissed in that 180 days, you cannot file again. Once you file for bankruptcy, you should include documents that include a list of liabilities, assets and property, a statement of financial affairs, a list of executory contracts and unexpired leases, proof of credit counseling and any plan developed to handle the matter, income payments within 60 days prior to filing, monthly net income and any indication of a rise in income or expenditures and interests the debtor has in state or federally-qualified education or tuition accounts. You can still file for bankruptcy if you are self-employed or operate an unincorporated business. However, you are only eligible if your secured debts and unsecured debts are less than the capped amount.
Once the paperwork is officially filed, an automatic stay will go into effect to give you the space you need from creditors. This can be seen as one of the most beneficial parts of filing for bankruptcy since you will not have to face harassment from creditors any longer. They are barred from contacting you in search of compensation for your debts.
If your home goes into foreclosure, filing for bankruptcy should stop the process and give you some time to possibly save it. You should file a repayment plan within 14 days of the petition unless the court grants an extension. A meeting with you, your attorney, your trustee and creditors who wish to attend is held to discuss your financial situation and decide on a repayment plan. You should have previously filed a repayment plan that detailed the schedule of compensation that the trustee will distribute to creditors. A judge will decide within 45 days if the repayment plan is sufficient and if cleared, the payments should begin within 30 days after filing.
If you require the services of an experienced Business Law or Bankruptcy attorney, contact the Law Offices of Allen A. Kolber, Esq. today to schedule a consultation and discuss your options.