You may hold an impressive job that affords you a steady, significant stream of income. However, you may have gotten overly excited and established a lifestyle for you and your family that is now a struggle to keep up with financially. Overall, you may be in over your head with the debts that you owe. This is when you may strongly consider undergoing a Chapter 13 bankruptcy process. Read on to discover the required steps you must follow and how a seasoned Rockland County Chapter 13 bankruptcy attorney at The Law Offices of Allen A. Kolber, Esq. can ensure you hit the mark on each one.
Under what circumstances should I opt for Chapter 13 bankruptcy?
The advantage that Chapter 13 may have over Chapter 7 bankruptcy is that it allows you to keep your assets and overall better maintain control over your finances, through the protection of the New York bankruptcy court. With this greater benefit comes greater exclusivity with who is best suited for a Chapter 13 bankruptcy option. That said, you should only consider this bankruptcy type under the following circumstances:
- You have many high-value assets in your possession.
- You have significant value to your Rockland County home.
- You earn above the average family income in Rockland County.
So if the above circumstances do not necessarily apply to you, you may sooner apply for Chapter 7 bankruptcy.
What are the required steps I must follow for Chapter 13 bankruptcy?
Once you confirm that Chapter 13 bankruptcy is the best move for you, you may begin following its required steps. These required steps read as follows:
- Make an appointment for a credit counseling session: Here, a counselor may verify that you earn enough income to pay back your creditors. This appointment must be made within 180 days before your bankruptcy filing and with an agency approved by the Department of Justice’s United States Trustee Program.
- Submit your Chapter 13 bankruptcy paperwork: Here, you may have to file your credit counseling certificate, a $313 filing fee, etc. Soon after, you may receive a letter regarding the automatic stay on your home, the date and time of your 341 meeting of creditors, etc.
- Attend your 341 meeting of creditors: Here, you may have to file tax returns, paycheck stubs, etc. Also, you may have to answer questions regarding your bankruptcy filing, asked by your bankruptcy trustee and your creditors who choose to attend.
- Draft your Chapter 13 repayment plan: Here, you may have to coordinate a payment schedule for how you are to pay off your creditors within three to five years. While waiting for approval, you may begin making these payments.
- Complete your Chapter 13 repayment plan: Here, you may make payments to your creditors for three to five years. After, the court may eliminate the remaining balance of your dischargeable debts from your responsibility.
When it comes to your Chapter 13 bankruptcy proceedings, there is no one other than a competent Rockland County bankruptcy attorney to have in your corner. So please contact us at The Law Offices of Allen A. Kolber, Esq. today.
