How to File Chapter 13 Bankruptcy

Are you contemplating Chapter 13 bankruptcy, but aren't sure what's involved? This page lays out the process of how to file chapter 13 bankruptcy.

Chapter 13 Bankruptcy Information: Overview of Chapter 13

Chapter 13 is appropriate for people who have a regular source of income. The schedule of payments on your debts is restructured so that you can repay them over time. Chapter 13 can also be used to stop foreclosure on your home. Chapter 13 bankruptcy does have an adverse impact on your credit report.

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Introduction

If you're debts are overwhelming and you need a way to get back into control, a chapter 13 bankruptcy might be able to help. Although bankruptcy is a serious step that does affect your credit, a chapter 13 bankruptcy settlement allows you to pay off all your debts, with some court mandated concessions made by your creditors.
Step 1: What is Chapter 13 Bankruptcy?

In a chapter 13 bankruptcy, after the court ascertains that you cannot make the total of the monthly payments of your debts, it will mandate a new repayment schedule, which will extend the length of time you have to pay so that your cash flow will cover the payments. The usual time period of the repayment is three to five years. During this time you make your payments to a trustee, who forwards the payments to your creditors. Some long term debts are not include in the restructuring.
Step 2: What Information is Needed for Chapter 13 Bankruptcy?

You are required by law to give a complete and accurate accounting of all your assets and liabilities to the bankruptcy court. Include account numbers, balances, and names and addresses for each asset and debt. Valuation information is useful for assets, and most recent statements from creditors will be helpful.
Step 3: Where To File for Chapter 13 Bankruptcy?

Your petition for chapter 13 bankruptcy needs to be filed in the federal court system Each U.S. District court has at least one court that hears bankruptcy cases. You should file in the district that you reside or do business in. If you have recently moved, you would usually need to wait until your 91st day of residence in the new district before filing there.
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