What You Should Know about Filling for a Chapter 13 Bankruptcy Case

Many people who struggled to pay their debt will seek the final resolution of filing for a bankruptcy. Chapter 13 bankruptcy can reduce the burden of your debt partially and it usually takes 3 – 5 years to repay it. You are to use your disposable income to pay for the debt in the Chapter 13 plan. The disposable income is the leftover after you have deducted your expenses.

You should eliminate expenses that you don’t need if you want to have more disposable income. If you are unable to come up with a budget to repay the debt in the Chapter 13 plan, you should look for alternatives. If you are not sure whether filling a Chapter 13 bankruptcy is suitable for you, you should get advice from an experienced and knowledgeable bankruptcy attorney.

Before you go ahead to hire an attorney, you must prepare all the necessary financial documents such as tax returns, and income tax statements. These documents must be prepared in a timely manner otherwise the court will dismiss your case. When you have gathered all the necessary financial documents, you should provide them to the attorney.

You have to be honest in disclosing all your financial information when preparing the paperwork including monthly salary, and assets. You must always make sure to keep records of all your financial documents while you are in the Chapter 13 bankruptcy plan.

It is important that you hire a professional lawyer that is part of a respected organization such as National Association of Consumer Bankruptcy Attorneys (NACBA). If the lawyer is a member of the organization, it means that he is specialized in the field and take continuous education to keep themselves updated on the most recent bankruptcy laws.

The law firm’s website must contain detailed information about the lawyers that will represent the clients’ cases. Many law firms provide online forms that you can download for free to assess your bankruptcy situation. There are many lawyers that offer free consultations so you should get consultation with several lawyers to determine the right one to hire. Prior to the consultations, make sure you write down any question that you have on a paper so that you will be ready to ask the lawyer these questions.

After your Chapter 13 bankruptcy is confirmed, you can expect to receive mails from your attorney or creditors from time to time. If you receive any document that you are unsure of from your creditor, you should immediately notify your attorney. During the repayment term, you may face problems such as illness, loss of income and etc that can prevent you from making the repayment. You should do your best to repay the debt regardless of your situation.

There are a few things that the court can do to help you clear your debt for example suspend the plan payment, and increase the repayment term. The court can make amendment to the repayment plan at anytime. Your bankruptcy attorney will be able to help you in making changes to the repayment plan.