Chapter 13 Bankruptcy Rules – All You Need to Know About Chapter 13
Chapter 13 is one of the most shared consumer bankruptcies today in America together with Chapter 7. These Chapters provide for the efficient payment of miss-managed debts in two different ways. Chapter 13, also known as the wage earners’ plan is in its most basic definition, a restructuring effort of your debts to let your unprofitable income ultimately pay the whole amount of your financial obligations. Before you move on with filing under this, learn first some of Chapter 13 bankruptcy rules.
First of all, if your income less the daily living expenses amounts to zero, you cannot file for Chapter 13. You must have a definite unprofitable amount every month to settle your accounts with your creditors, though it is only a fraction of what they truly expect from you. Chapter 13 provides for the length of time which your debts are divided into. The longer that is, the better is your chance to manage the repayment scheme.
Do not deliberately refrain yourself from going to the court as this can affect your filing. You will also be not allowed to file for Chapter 13 if you received a credit counseling session from an empowered credit counseling group (one on one or group sessions) 180 days prior your actual filing.
Aside from the unprofitable income that is expected from you to file for Chapter 13, there are also limits to your incurred secured and non-secured debts. Your unsecured debts must be less than $360,475 and your secured debts less than $1,081,400.
The court would need a lot of financial information from you the moment you decide to file under Chapter 13. Some of these are schedule of your schedule of current income and expenditures, schedule of executory contracts and unexpired leases and last but not the least, statement of financial affairs. You must also submit certificate of credit counseling and debt repayment plan developed from the same counseling. Evidence of payment from employers must also be provided together with the net income statement with possible income and expense increases after filing. These bits of information are all important in the decision of the court to consider you legible to claim bankruptcy under the covering of Chapter 13 provisions.
Needless to say, the court would also need the list of your creditors with the specific character of their claims (to make sure the debt incurred is not of malicious origin). You must also submit the list of your similarities. Chapter 13 does not include itself to the liquidation course of action of your assets (as in Chapter 7). But you must comply to this requirement nevertheless. Chapter 13 bankruptcy rules are the foundation of a successful filing of your case. Learn from it and use it as an information resource for decision to file for it or not.