There are many good reasons for choosing Chapter 13 Bankruptcy over Chapter 7 Bankruptcy. First, it is ideal for anyone who needs more time to pay off debts. It is also good for those who have income to undergo Chapter 13 liquidation. In addition, Chapter 13 Bankruptcy offers protection for liable co-signers.
Will Chapter 13 Save Your Home?
If your home is about to be foreclosed upon, Chapter 13 can help. It involves taking the following steps:
- Devise an approved repayment plan that includes missed payments.
- Remain current on your mortgage.
Will Chapter 13 Allow You to Keep Your Assets?
You are allowed to keep all property, no matter what the current value may be. However, you must be able to pay unsecured debtors the amount of money you would lose on that property if you had filed for Chapter 7 Bankruptcy.
Want to Know How to Start the Chapter 13 Bankruptcy Process?
First things first. Determine if you are a good candidate for Chapter 13 Bankruptcy. We can discuss your financial needs and options during a free consultation.
How Does the Chapter 13 Bankruptcy Process Work?
First, you must file a petition with the bankruptcy court where you live.
The court will ask for the following information when you to file:
- A list of your assets and liabilities
- A list of monthly existing income and expenses and other information if you are expecting an income increase after the file date.
- A list of executory contracts and unexpired leases
- A statement of financial affairs per- Fed. R. Bankr. P. 1007 (b)
- A certificate of credit counseling
- A copy of debt repayment plan created via credit counseling
- Proof of employer payment, if it was made 60 days before the petition file date
- A list of interest on federal or state qualified tuition or education per 11 U.S.C. 521.
What You Need To Do Next
You must also provide the Chapter 13 case trustee with a copy of your most recent tax returns and transcripts. This includes tax returns filed during the case and any other returns that were not filed before the case. Married couples can file either joint or individual petitions.
The petition isn’t complete until the debtor provides the following requested information on all Official Bankruptcy Forms:
- Income Source
- Income Frequency
- Income Amount
- A list of monthly living expenses. For example, food, utilities, lodging, transportation, medical costs, clothing, and taxes.
Keep in mind, you can save your home from foreclosure immediately, once you file for Chapter 13 bankruptcy. You are given a certain amount of time to bring your mortgage up to date. Unfortunately, you could still lose your home if the mortgage company sells your home before you file per 11 U.S.C. 1322 (c ). You could also lose your home if you do not make regular mortgage payments after the petition is filed.
Chapter 13 Trustee
The chapter 13 trustee will meet with your creditors anywhere between 20 to 50 days after the petition is filed. If the meeting is held in a place that does not have an assigned U.S. trustee or other bankruptcy staffing, the meeting must still take place within 60 days per Fed.R.Bankr.P. 2003(a).
You will be placed under oath during this meeting and questioned by both the trustee and your creditors. You are required to attend the meeting and answer all questions about the proposed terms of the plan per 11 U.S.C. 343. The best way to ensure everything goes smoothly is to complete all paperwork, and make sure all info is factual. Also, consult with a lawyer.
Once the meeting is over, a hearing will be scheduled to discuss your chapter 13 repayment plan. Your case trustee and interested creditors are allowed to attend the hearing.
There are particular debts that can be discharged with Chapter 13 Bankruptcy, and not with Chapter 7 Bankruptcy. They include the following:
- Debts connected with a willful and malicious injury to property.
- Debts incurred to pay tax obligations that can’t be discharged.
- Debts incurred due to divorce or separation property settlements. 11 U.S.C. 1328(a).
We can help you to get debt relief. Contact us to find out if you are eligible for Utah Bankruptcy relief. We provide you with answers to the general about debt relief or how our services work. Contact us by phone at (801) 432-8682. We serve all of Utah.