The First Step to File Chapter 13 Bankruptcy
Bankruptcy is a legal process that offers individuals the opportunity to find relief when facing financial hardship. Even though bankruptcy is usually seen as an extreme situation, if you are struggling with debt, find comfort in knowing that there is a second chance. Individuals have several types of bankruptcy available, on this article we’ll explain the first step you need to take if you are thinking to file chapter 13.
Chapter 13 Bankruptcy
Chapter 13 Bankruptcy is the option to reorganize your debt, for individuals who are late in mortgage and car loan payments. If we want to put it in simple words, chapter 13 bankruptcy is a reorganization of your debt, a repayment plan that is set under the guidance of a court, after certain requirements have been met by the debtor.
Benefits of filing a chapter 13 bankruptcy
One of the advantages of filing a chapter 13 bankruptcy is it offers the chance to keep your home, and other personal assets after a settlement plan is approved by the court. Once you file chapter 13, you may benefit from:
- Retain your homestead,
- Keep most personal assets,
- Modify the mortgage payment plan, and
- Reschedule secured debt
First step to file bankruptcy chapter 13
The first step to take is hiring a truly experienced consumer bankruptcy attorney who has handled plenty of chapter 13 bankruptcy cases before, instead of hiring an attorney who handles other bankruptcy chapters, or asking the opinion of a paralegal or an advisor. Make sure to confirm the attorney you hire practices chapter 13 bankruptcy specifically. It is very important to make sure you take it serious as you would any other legal procedure.
A bankruptcy attorney can take you through the process smoothly and secure. Once a bankruptcy attorney decides to take on your case, you will need to provide documents of all your assets and debts, we encourage you to gather all the documentation and have it ready.
Why you shouldn’t file bankruptcy on your own
If you are thinking to attempt on your own, keep in mind that the process is extremely complicated, chapter 13 bankruptcy is an alternative for debtors who expect a steady income, from which, a portion can be used towards paying the existing debt; this is why chapter 13 is also called “wage-earner plan”. The payment plan outlined by the court must be followed, if you do not make the payments on time, the court will dismiss your bankruptcy.
The process is cumbersome and detailed, you will have to fill out and file a lot of paperwork with important information, if you fill it out wrong your case gets dismissed and you will have to start over, if you start over you’ll have to pay the filing fee again. Also, if you miss any deadline you case get dismissed. You are safer filing bankruptcy with you a bankruptcy attorney.
The debtor filing bankruptcy chapter 13 must:
- Prove eligibility,
- Submit specific forms, and
- Meet every deadline.
Like any other legal case the debtor has a specific legal deadlines to respond, failing to follow every step as the code stipulates may put the final outcome by the court at risk. Every bankruptcy chapter is different for what you should work with a lawyer who has true experience and knows well the ins and outs of the chapter you intend to file.
Adams Law handles chapter 13 bankruptcy and is proud to say that our firm has helped many in our community throughout the process. Contact us for a free consultation and to get more information on how we can help you file chapter 13 bankruptcy.
