If you’re one of the millions of Americans who have lost their job, are burdened with medical debt or are otherwise struggling to make ends meet, bankruptcy might be your best option. Depending on your specific circumstances, Chapter 13 bankruptcy affords you certain caveats that Chapter 7 bankruptcy does not, such as hanging on to certain assets. If you’re considering filing for bankruptcy, read on to learn more about Chapter 13, then call your local bankruptcy attorney in Park Hills, MO to discuss your individual case.
What is Chapter 13 bankruptcy?
Chapter 13 bankruptcy allows you to hold on to your assets and work out a repayment plan with your creditors. This is in contrast to Chapter 7 bankruptcy, which requires you to liquidate your assets and use the income for repayment. Once you’ve paid that money to your creditors, your bankruptcy is concluded. Chapter 13 bankruptcy will let you keep your assets, but you’ll need enough stable income to complete the repayment plan, which is usually extended over the course of five years.
How to file for Chapter 13 bankruptcy
Here’s a closer look at the steps involved in filing for Chapter 13 bankruptcy in Park Hills, MO:
- Talk to your attorney about whether Chapter 13 is right for you: Your attorney can help you determine whether Chapter 7 or Chapter 13 bankruptcy is right for your situation. You’ll also need to determine whether your debts are eligible—Chapter 13 has caps on the type and amount of debt you can be in.
- List and value your property: Next, you’ll need to evaluate all your assets and determine how much they’re worth. Some assets will qualify as exemptions, but you’ll need to pay some creditors the value of your non-exempt property.
- Determine your income: Next, you’ll need to figure out if your income can cover all your monthly expenses plus the amount required under your payment plan. If not, you won’t be allowed to file under Chapter 13.
- Fill out and file your forms: If you’re working with an attorney, they’ll help you fill out and file your forms. You may be required to take a pre-filing course with the court.
- Provide the trustee with documentation: After your forms are filed, you’ll need to provide the trustee with documentation about your income, assets and debts.
- Attend hearings: Next, you’ll attend hearings: the meeting of the creditors, where the trustee reviews documentation and repayment plan, and a confirmation hearing.
- Make payments: After your repayment plan has been approved, you’ll need to start repaying your creditors based on the payment plan. You cannot miss any of these payments over the five-year period, or your case will be dismissed.
- Attend post-filing course: You may be required to attend a post-filing course, which helps educate debtors about avoiding bankruptcy in the future.
- Wait for discharge: At the end of the repayment period, you’ll receive a notification of discharge, indicating your case is over.
To speak with Chapter 13 bankruptcy attorneys in Park Hills, MO, call Maynard & Joyce, LLC today.