When you file for Chapter 13, you’ll be developing a plan for the payment of all or part of your debts. The payments will be over a monthly period for three to five years based on your ability to pay and based on your future earnings. Many times you’ll have the opportunity to pay off the arrears on a mortgage and save your home using a Chapter 13.
There are a lot of factors that must be accounted for when applying for Chapter 13 bankruptcy to determine whether or not you are eligible for this type of bankruptcy. One of those aspects is to ensure that you have not been denied for another petition of bankruptcy within the last 180 days. You can apply for Chapter 13 if you are self-employed or if you are the owner of a business that is not a corporation or a partnership.
The requirements that must be fulfilled when filing for Chapter 13 are to provide the court with the following information. First, there must be a list of any assets and liabilities that are in your name. You will also need a list of both your income and monthly expenses as well as a complete list of your debts. These are part of the Official Bankruptcy Forms provided by the U.S. Government.
When you file for bankruptcy, there are specific fees that must also be paid to the court system. In order to file your case, there is a $235 charge as well as another $75 fee for administrative purposes. In the event that you cannot pay these fees, the judge reviewing your case may rule to absolve them or set you up with a payment plan so they can eventually be paid off when you have the funds to do so. Within 60 days of the completion of your filing, there will be a meeting of the creditors with a U.S. trustee to review your finances and petition for bankruptcy.
Filing for a bankruptcy of any sort is a difficult decision to make so it is a good idea to seek legal counsel from an experienced attorney that can assist you with any questions that relate to your personal situation.
Juan C. Velasco, Esq. is a trusted attorney who has been serving the New Jersey area for over 25 years. If you are in need of experienced legal counsel, please contact Velasco Law Office and we will be happy to assist you.