For those folks interested in declaring bankruptcy without having to give up the majority of their assets oftentimes consider filing for chapter 13. A chapter 13 bankruptcy requiresthat all or part of your debt be paid off over a period of time. Often, it’s better for those who have consistent income and non-exempt property they wish to keep, as it’ll involve developing a payment plan that requires the approval of the bankruptcy court. There are, of course, stringent rules in place to be eligible for this kind of bankruptcy. They involve showing proof of the capability of paying off debt on monthly basis, taking credit counseling, as well as having the ability to prove that unsecured and secured debts aren’t over the maximum limitation permitted for a chapter 13 bankruptcy.
Credit counseling
One requirement to file a chapter 13 bankruptcy rule includes completion of two online credit counseling courses. One course is required prior to filing and one after filing. This measure provides valuable information and guidance in budgeting and making smarter financial decisions. These courses are great tolls in teaching debtors to better prepare for their financial future .
How to File:
Once you decide to go forward with filing Chapter 13, your attorney will prepare and submit a petition to the bankruptcy court.The documents needed to be submitted with the petition involve a list of liabilities and assets, financial statements showing income, names of both secured and unsecured creditors, and total debt, all assets including real estate and personal property. Bankruptcy Attorney will work directly with you to propose a plan that is affordable to you and acceptable to the Bankruptcy Court.
When to contact Robert Peters, Chapter 13 Bankruptcy Attorney in Jacksonville
As soon as your bankruptcy is filed in court, the creditors will be notified so they won’t continually harass debtors for the money. During this time, a trustee will take over, and a debtor has to submit a proposed repayment strategy within around 2 weeks of filing. The strategy must be approved by the bankruptcy court and the trustee prior to payments being disbursed to your unsecured creditors. The Chapter 13 payment plan is paid on a monthly basis lasting anywhere from 3-5 years. Rules for Chapter 13 bankruptcy require that every monthly payment be made to a trustee, instead of to the creditors, in order for him to disburse the payments amongst your creditors. If you need help getting your finances under control contact our Chapter 13 Bankruptcy Attorney in Jacksonville.
For more information on our Chapter 13 Bankruptcy Attorney in Jacksonville, contact Robert Peters today at 904-421-6907.