What do I need to file for Ch. 13?

Bankruptcy laws can be pretty complex, thanks to the Bankruptcy Abuse Prevention and Consumer Protection Act that was passed in 1995. But there’s no need to be discouraged – you don’t have to go through it alone! A professional bankruptcy attorney can walk you through the process step-by-step.

In order to file for either Ch. 13 or Ch. 7, you’ll first need to complete credit counseling with an agency approved by the United States Trustee's office. Your bankruptcy attorney can help you find an appropriate counseling agency.

Also, you’ll need to meet a few requirements before you file. Most people who meet the basic criteria – i.e., steady income – will be eligible. But there are a few exceptions based on the amount of debt you have. Don’t worry – a professional bankruptcy attorney can fill you in on the details.

If you’ve previously had debts discharged with bankruptcy, a few more rules apply. If it was a Ch. 7 (or another form of bankruptcy other than Ch. 13), you’ll have to wait four years before filing for Ch. 13. If you’ve previously had debts discharged under Ch. 13, you’ll need to wait two years before filing again.

Bankruptcy is complicated – but it’s our job to make it easier. Remember, bankruptcy was created just for you – the U.S. citizen. Contact a DebtStoppers attorney today to activate your legal right.

I’m eligible to file – now what?

Congratulations – you’re on your way to a debt-free future! Now you’ll need to file a bankruptcy petition, the official document that gets the process started.

First, you’ll need to supply your bankruptcy attorney with your important financial documents – any information pertaining to your income, expenses, assets and liabilities. This will help your lawyer determine your “current income” and other calculations.

When listing your assets, make sure to include everything you own that is considered to have value. That means the big stuff like cash and investments, vehicles, and real estate, but also smaller items you might not think about, like clothing, jewelry and furniture. You’ll also need to include money due to you, such as tax refunds or alimony, and money you owe – primarily, what is due to your creditors.

Cataloging every detail of your financial life might feel intimidating at first, but rest assured, a professional bankruptcy attorney will break the process down step-by-step so it goes smoothly and comfortably. Meanwhile, it won’t hurt to start preparing this information if you’re considering bankruptcy. Remember, if you have any questions or concerns along the way don’t hesitate to ask us at DebtStoppers. It’s why we’re here.

How much does it cost?

Bankruptcy courts require a fee to file – it currently costs $274 to file for Ch. 13 in Illinois or Georgia. These fees are subject to change – but you can always check out the most current numbers here.

Though not guaranteed, waivers and other exceptions are sometimes available depending on your particular situation.

There is also a smaller conversion fee (should you need to change a Ch. 13 bankruptcy to a Ch. 7) and the possibility of amendment fees (in case you have to change documentation after the initial filing), in addition to attorney fees.

Remember, if you have any questions about cost – or any issue relating to bankruptcy, for that matter – a DebtStoppers attorney can answer them for free. And you can also check out our blog, watch informative videos in our online video center or sign up for an hour-long personal debt analysis – all at no cost.

The price of filing for bankruptcy is small change compared to the benefit you’ll receive when you eliminate debt and keep that roof over your head. Fill out our personal debt analysis online and unload your debt burden today!

What happens once I file?

Right away, you’ll see the effects of the automatic stay. Debt collections and other creditor actions will be halted. A notice will be sent to your creditors alerting them to the fact you’ve filed for bankruptcy. From this point on, you no longer have to deal with creditors.

You’ll be assigned a bankruptcy trustee who will review your case. This might sound a bit intimidating, but it’s merely a formality. The trustee just needs to make sure your petition is accurate.

Within the next 15 days, you’ll need to file a schedule of your assets and liabilities, income and expenditures, and the other financial information listed above. Again, there’s no need to be overwhelmed – you’re bankruptcy attorney is here to help the process go smoothly.

Next, you and your attorney will submit a proposed payment plan that takes into account your income, living expenses and the amount you can afford to pay.

About a month or two after filing, you’ll need to attend a meeting of creditors with your bankruptcy trustee. While the thought of meeting face-to-face with creditors might be a bit unsettling, keep in mind that this is a very informal and usually brief meeting. In fact, most creditors don’t even choose to attend. Once the automatic stay is in effect, they have little to no power over your life – and therefore, not much incentive to be present.

From here on out, your only obligation is to keep making those bankruptcy payments. When your payments are complete, you’ll receive a notice of discharge – official proof that you’re free and clear.

REMEMBER – BANKRUPTCY IS YOUR CHANCE FOR A FRESH START!

Don’t wait another day – the sooner you file for bankruptcy, the sooner you’ll kiss debt goodbye. Sign up for a personal debt evaluation online right now!