What to do before filing Chapter 13 bankruptcy?

What to do before filing Chapter 13 bankruptcy?

Step 5: Take the first credit counseling course. Before filing your Chapter 13 bankruptcy forms, you’ll need to complete a credit counseling course approved by the Department of Justice. The course takes approximately one hour and can be completed online or by telephone. The fee ranges from $10 to $50, depending on the provider.

What’s the best reason to file Chapter 13?

One of the most popular reasons for filing for Chapter 13 is to keep one’s assets like a home or a car. “Chapter 13 is generally a ‘keep your stuff’ chapter,” says Bert Benham, a Memphis bankruptcy attorney.

Why is Chapter 13 probably a bad idea in 2021?

One of the most alarming trends relating to Chapter 13 is the data showing that is not applied evenly. Across the country, the odds of black debtors choosing Chapter 13 instead of Chapter 7 are over twice as high as for white debtors with a similar finances.

What happens to unprotected property in Chapter 13?

In a Chapter 7, your unprotected property gets sold and the proceeds are distributed to your creditors. A Chapter 13 allows you to avoid the the potential of having your unprotected property sold by the trustee, as you’ll be paying your creditors the value of your unprotected property over the duration of the Chapter 13 plan.

Can a boyfriend or girlfriend file for bankruptcy?

Some attorneys will say that your boyfriend or girlfriend’s income must be included in your bankruptcy petition because a trustee will use a “heads on beds” analysis in determining your household income.

Can you file Chapter 13 bankruptcy if you are unemployed?

You can file a Chapter 13 bankruptcy if you are unemployed. However, you must be receiving income from another verifiable source other than from employment.

How much does it cost to file a chapter 13 bankruptcy?

The filing fee for a Chapter 13 case is $313. You’ll need to pay the full amount directly to the court when you go to file your forms. There is no fee waiver option when filing a Chapter 13 case like there is with a Chapter 7. Make sure to also print out the exact number of copies your local bankruptcy court requires.

How many pages do you need to fill out for Chapter 13?

There are 23 separate forms, totaling roughly 70 pages in your Chapter 13 petition. You must enter all of your financial data and be able to give the court a full and accurate picture of your financial situation. Part of filling out the bankruptcy forms in a Chapter 13 case is also drafting your Chapter 13 repayment plan.

How long does it take to file Chapter 7 bankruptcy?

By filing for Chapter 7, relief can be yours in as few as four months. How to File for Chapter 7 Bankruptcy explains the bankruptcy process in easy-to-understand language, including: how to retain your home or car. rebuild your credit after receiving your fresh start.

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