How to Protect Assets in Personal Bankruptcy
Filing for Chapter 13 bankruptcy can help you save your assets from liquidation. Provided that you have stable income and a plan to repay your debts, Chapter 13 will resolve your debt in three to five years. A trustee is appointed to your case, to whom you must make your payments. In turn, he will pay your creditors throughout the entirety of your repayment.
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Instructions
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Understand the difference between Chapters 13 and 7. Chapter 7 causes you to lose all of your nonexempt assets, but you do not have to pay back your creditors by any other means. However, Chapter 13 bankruptcy involves paying back your creditors each month, but you can protect your personal assets.
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Download and print the forms specific to Chapter 13, in addition to those that refer to bankruptcy in general. These are found on the United States Courts website.
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Complete the forms following the provided directions. Have your attorney assist you if necessary.
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Create a payment plan. To get your plan approved by the court, it must detail your current stable income and how you can reasonably make biweekly or monthly payments, in addition to your other monthly expenses. Have your lawyer assist you with this.
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Have your attorney file your papers. Submit your paperwork to the nearest clerk of the court office in your county if you do not have an attorney.
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Have your attorney set up an appointment with a credit counselor. Contact the nearest clerk of the court office in your county regarding contact information for accredited counselors if you do not have an attorney. Use this information to contact one and request an appointment.
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Attend your second credit meeting. This hour-long session requires that you physically appear to it. Watch the video shown at the meeting and complete the given quiz upon its completion. Pay the specified fee and receive your certificate number for this session. Obtain your letter regarding where your numbers should be submitted. Do this immediately after leaving the meeting.
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Attend a meeting with your creditors four to six weeks after your papers have been filed. Your trustee will ask you a series of questions during the meeting regarding your debts and income. Expect most creditors to attend, especially if they have a problem with your repayment plan.
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Receive your papers of approval in the mail. Upon receiving these, your repayment may begin. Send your money to the trustee as scheduled.
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