Although you may feel you are drowning in a sea of debt, there are viable methods for returning to shore and resuming your life—with a more manageable debt repayment plan.
For individuals who receive a substantial income and want to protect their assets, filing for Chapter 13 bankruptcy may be the appropriate type of bankruptcy for you to pursue.
To learn more about how to file for Chapter 13 bankruptcy, as well as precisely what filing means for you and your lifestyle, continue on reading.
Debtors with a small income usually decide to file for Chapter 7 bankruptcy. Those with a significant income tend to file for Chapter 13.
In order for your application to be approved, a prospective filer must be in possession of a debt that does not exceed certain limits—as outlined by the specific state in which you live.
In addition, you must prove that you receive an income that enables you to afford: a) your current lifestyle, and b) the repayment plan that you will structure during the process of filing.
Furthermore, companies cannot file for this type of bankruptcy. Instead, only an individual can begin the filing process.
Suppose you believe that you meet the requirements for eligibility. In that case, you should familiarize yourself with the litigation process and seek the assistance of a bankruptcy lawyer.
Just as one would do when filing for Chapter 7, filers of Chapter 13 bankruptcy must undergo extensive forms and courses.
Therefore, when you begin the process of filing, you must fill out all relevant forms with information pertaining to your properties, assets, and debts; you must also complete mandatory credit counseling courses.
This is necessary for the court to determine if you can afford the payment plan.
Following these steps, you will complete a debtor education course to ensure that you understand entirely what the court expects of you during the process.
Finally, the time has arrived for you to begin developing a repayment plan with the help of your bankruptcy lawyer.
Ultimately, the plan should address all forms of debt that you currently owe, as well as the additional expenses that you pay, such as a mortgage, car, and any other living expenses. After devising a plan, your creditors and bankruptcy trustee appointed by the court must accept the repayment plan.
In some cases, these two parties may decide to object to your plan, at which point you will make revisions.
However, if there are no objections and the plan meets all other requirements, in that it is feasible and complies with all bankruptcy laws, the judge overseeing your case will confirm the plan and payments will begin immediately.
After you file Chapter 13 bankruptcy and your repayment plan is accepted, you will submit the required payment each month to avoid any complications, like additional fees.
However, your financial situation could divert from what you previously listed in your plan. Reasons such as losing your job or having to pay expensive medical bills.
In the instance that your available income decreases after your plan was already accepted, there are ways that you can go about modifying your repayment plan. However, unless you meet the qualifications given by the court, you could have no other choice besides switching your case to a Chapter 7 bankruptcy.
Of course, with Chapter 7 bankruptcy, the possibility remains that you will lose your property and assets over the course of paying off your debts.
Ultimately, as long as you continue paying your debts without missing any payments, you should expect to be debt-free when your repayment plan ends. However, it is imperative to make the court aware of any changes to your financial situation following the plan’s implementation.
Furthermore, you should engage the services of a bankruptcy lawyer. They will help guide you through this process and avoid any errors.
We know that filing for bankruptcy can be a stressful and overwhelming process for clients. The bankruptcy attorneys at Blue Bee work hard to make the process as stress-free as possible for our clients. Call us at (801)285-0980 or visit our website at https://bluebeebankruptcy.com/ for more information.
At Blue Bee Bankruptcy, our lawyers are highly experienced in the various filing options. More importantly, we understand that each case we receive is unique and each client has different needs and goals. We will discuss these signs with you and decide the best route to take.
We strive to help our clients rebuild their lives and take steps toward a better financial future through filing.
If you’re dealing with the potential of bankruptcy, give us a call. Our team will work to help you by reviewing all of the options our firm has available. We will ensure you’ll get the best possible outcome for your situation.
Get in touch today so we can start working on either halting bankruptcies or preventing them from taking place altogether!
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