How to File for Chapter 13 Bankruptcy Protection

A Chapter 13 bankruptcy allows you to repay your debts over a three- to five-year period through a court-approved repayment plan. You may file for a Chapter 13 bankruptcy without the aid of a lawyer but bankruptcy laws change periodically, and the slightest error can affect your rights as a petitioner and lead to a dismissal of your case. Hiring a lawyer or seeking free legal assistance through legal services provides insight into bankruptcy rules and eliminates stress. Once you file your petition, creditors cannot begin or continue collection actions.

Instructions

1. Calculate your debt. Unsecured debt (i.e., credit cards, medical bills, anything without tangible property supporting the debt) must fall below $360,475. Secured debt (i.e., mortgage, auto loan, debt that is secured by property) must be less than $1,081,400. Amounts change periodically based on the consumer price index.

2. Download the official bankruptcy forms from the U.S. Courts website at uscourts.gov. You may also visit your local library for assistance in downloading and printing the forms on a library computer. Note, the courts do not provide bankruptcy forms.

3. Complete the bankruptcy forms thoroughly and accurately. List all creditors, debt amounts and types of debt you owe (secured or unsecured). Include your income and your spouse's income, if married. List your property and monthly living expenses. Include your spouse's income, debt and property regardless of whether your spouse files with you. You do not need to file documentation of your debts with your bankruptcy petition, but obtaining actual statements with a payoff amount helps complete the paperwork.

4. Gather copies of your tax returns for the last four years. You must file any outstanding tax returns. You must also provide check stubs for the previous 60 days and documentation to support any other income you've received.

5. Seek an approved credit-counseling agency 180 days before filing your bankruptcy petition. You may obtain a list of approved agencies in your state by accessing the Trustee Program on the Department of Justice website at justice.gov. You can also contact the bankruptcy court clerk in your state for a list of agencies. Obtain a certificate of credit counseling and complete a statement of compliance.

6. Acquire a repayment plan form. Currently, there is no standardized repayment plan form. Contact the bankruptcy court clerk to request the approved form or format for your area. You may also contact the legal services agency in your area to inquire about the proper repayment form or acceptable format.

7. Create your repayment plan. Provide proof that you can pay at least $100 per month toward your payment plan. List your priority debts along with secured and unsecured debts, in that order. Priority debts refer to debts you must pay in full, such as owed taxes and bankruptcy costs. Make sure you include any late payments you owe on your debt. Figure your income and the amount that you can pay toward priority and secured debts and then show that any additional disposable income goes to unsecured debt. Unsecured debtors may not receive payment if you have no additional disposable income.

8. File your petition, repayment plan, certificate of credit counseling and statement of compliance in your judicial district. If you do not know which district to file, check your local telephone book, contact the bankruptcy court clerk in your area or access the U.S. Court website and use the court locator at uscourts.gov.

9. Pay the filing fee. At the time of publication, the filing fee for a Chapter 13 is $274. If you cannot afford the filing fee, complete an "Application and Order to Pay Filing Fee in Installments." You can find the application in the forms you downloaded online.

10. Attend the meeting of creditors. The meeting of creditors takes place 20 to 50 days after filing the petition. You must attend this meeting. If you filed a joint petition, your spouse must also attend. During the meeting, the trustee and creditors may ask questions regarding your finances and debt repayment plan.

11. Attend the confirmation hearing. This hearing determines whether your plan is practical and meets repayment requirements. Confirmation hearings take place no later than 45 days after the meeting of creditors.

12. Start making payments to the trustee within 30 days of filing your petition regardless of whether the court has approved your plan. The trustee distributes payments to creditors upon approval of the repayment plan.

References

• United States Courts: Chapter 13: Individual Debt Adjustment
• United States Courts: Filing for Bankruptcy Without an Attorney
• United States Courts: Voluntary Petition: Instructions
• United States Courts: Bankruptcy Filing Fees
• Tax Debt Help: Chapter 13 IRS Tax Bankruptcy Requirements & Details
• Findlaw: Chapter 13 Reorganization Bankruptcy

Resources

• Department of Justice: U.S. Trustee Program
• United States Courts: Bankruptcy Forms
• U.S. Courts: Court Locator