How to File for Bankruptcy Chapter 13

Today's economy has made an impact on the financial situations of many people. You may have bills piling up, possible foreclosure on your home or even medical bills because of no health care plan. You need some relief, but if you want to keep your home and not lose it in a foreclosure, you can file a bankruptcy chapter 13. Although you will have to pay secured debts, unsecured debts are at the end of the line with a chapter 13.

Things You'll Need

• Credit Report
• Copies of all bills
• Bank statements
• Pay stubs for the last three months
• Vehicle titles
• A list of all assets

Instructions

1. Select the way you file the chapter 13. You can do the chapter yourself or with a bankruptcy lawyer. Using a lawyer will cost about two thousand dollars depending on the lawyer you hire. The best way to file is with a lawyer. You need half of the money upfront and the remainder of the payment is added to your chapter 13 payment plan.

2. Fill out the application form for a chapter 13. This information will include a list of all creditors with name, address and location. This will also include the amount of each debt. The application asks for a lit of all assets as well. This includes anything thing of value. Include motorcycles, cars, campers, snowmobiles and boats.

3. Fill out the section that states your monthly expenses. Include all the bills that you have. This will include insurance costs, food, utilities, car repairs, entertainment, medical payments and any expenses that you need to live

4. Schedule an appointment with a credit counselor. Some lawyers work with an online company and you just enter all the same information that you have entered on the application forms. You will have to supply a certificate to the lawyer. The certificate is sent along to the trustee that will be in charge of your payment plan for the term of the chapter 13.

5. Attend the scheduled hearing date with the trustee and any creditors that may attend. This goes very quickly and many of the unsecured creditors do not show up for this hearing. As long as the secured debts are being paid back in full these creditors do not attend the hearing as well.

6. Send out the trustee payment every month for the term of the chapter 13, which can be from three to five years. It is important that you pay this payment every month before the due date. If a home is included in this chapter, you must make those payments on time every month as well.

7. Schedule the last credit counseling session, which is a video about financial planning. The session is about two hours long. The certificate is then given to the bankruptcy court so that all the debts can be discharged.

Tips & Warnings

• The trustee will send you paperwork that explains all the payments and what creditor will get what.

• Some unsecured creditors will not receive much money if any.

• The trustee will take one-half of your yearly tax returns for the term of the chapter 13.

• Never be late with the trustee payment or a house payment during this time.

• The chapter 13 can stay on a credit report for ten years.