An Overview of Chapter 13 Bankruptcy

Chapter 13 bankruptcy is a form of debt relief that involves the court-supervised reorganization of your assets, as well as the construction of a repayment plan to pay off debts you choose to retain, or that cannot be discharged by a chapter 13 bankruptcy. If you need to file bankruptcy, chapter 13 bankruptcy could be an option for you if you have sufficient income and possess one or more valuable assets. However, you should realize that filing chapter 13 bankruptcy is a highly invasive and complicated legal procedure that will affect many aspects of your life and will remain on your credit report for up to ten years. Furthermore, when you file chapter 13 bankruptcy, you need to be sure all information you submit to the court is correct and incomplete in order to avoid complications and the possibility of serious legal repercussions. For this reason, it is in your best interest to retain the services of an experienced chapter 13 bankruptcy lawyer to represent you during your chapter 13 bankruptcy filing.

Once you've decided to file bankruptcy, you should make it your mission to be as informed as possible about all aspects of chapter 13 bankruptcy. First, you'll have to apply for credit counseling at a government-approved organization. This is a mandatory step in the process of filing chapter 13 bankruptcy, as is taking a means test to confirm that your income is below a state-determined amount. If you omit to take these steps, the court will refuse your chapter 13 bankruptcy petition. When you've met these requirements, you should seek the counsel of a qualified chapter 13 bankruptcy lawyer who will instruct you on how to file chapter 13 and which documents you will have to submit to the court as part of your bankruptcy petition. Together with your chapter 13 bankruptcy lawyer, you will gather all pertinent information to compile the petition and construct a proposal for your chapter 13 bankruptcy repayment plan. Your chapter 13 bankruptcy lawyer will inform you which of your assets - usually certain personal items, and fortunately retirement funds or pension plans such as IRAs - are exempt from your chapter 13 bankruptcy. When your petition has been accepted by the court, and nobody objects to your chapter 13 bankruptcy reorganization, your repayment plan will go into effect. The court will decide when to issue you an official discharge of your debt.