Posted on: 4 January 2016
If you want to restructure some or all of your debt, you may wish to think about filing for a Chapter 13 bankruptcy. This is an ideal way to either work to get your monthly payments reduced or work to take longer to pay off your loan. Regardless of what you're trying to accomplish by filing for this legal status, there are certain things you should consider before doing so.
You must be able to prove certain things when filing for this status and these are listed below:
1. Only an individual can file for this legal status.
2. The amount of money you make must be provided with the necessary proof.
3. You must not have had a previous bankruptcy filed within the last 180 days.
4. It's necessary to complete a credit counseling class and receive a certificate for doing so.
5. You must be current in filing all of your tax returns.
As of June 1, 2014, the amount of filing a Chapter 13 bankruptcy is $310. This will only cover the court and administrative expenses for the filing of this legal status.
When it comes to reorganizing your debt, there are limits in place for both secured and unsecured debt. You must not have more than $383,175 in unsecured debt and $1,149,525 in secured debt to file for Chapter 13 bankruptcy.
It's necessary for you to complete certain forms that will show you are eligible for this status and the information you should provide is listed below:
1. A comprehensive list of all the companies you own money to and the reason for borrowing the money.
2. Your place of employment and the amount of income you make for a specific amount of time. You will need to provide proof of this with a W-2.
3. The amount of property that is owned by you and the address of each.
4. Your monthly costs for living that may include a place to live, food, clothing and other miscellaneous expenses.
If you're considering filing for Chapter 13 bankruptcy, you will want to be well-informed about what you need to do and the process that is involved. This will allow you to know what to expect and help ensure you meet all of the necessary requirements. Be sure to consult with a bankruptcy attorney in your area to assist you with filing for this status.Share