Purposeful Advocacy for New Jersey
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How Do I File for Chapter 13 Bankruptcy?

When you have reached a point where your finances are in trouble and you do not know how to handle this situation, it may be time to consider bankruptcy proceedings. Chapter 13 bankruptcy can be a process that can be useful for you. It may help to provide benefits for you in the future. If you use this process successfully, you may have a better financial future ahead of you.

Before filing for Chapter 13 bankruptcy, you will need to go through credit counseling 180 days before you file. This credit counseling can educate you more on your current situation. If you have previously filed a petition that was dismissed in that 180 days, you cannot file again due to this close timetable. Once you file for bankruptcy, you should include documents that detail a list of liabilities, assets and property, a statement of financial affairs, a list of executory contracts and unexpired leases, proof of credit counseling and any plan developed to handle the matter, income payments within 60 days prior to filing, monthly net income and any indication of a rise in income or expenditures and interests the debtor has in state or federally-qualified education or tuition accounts. An automatic stay will go into effect after your paperwork is filed. This can give you the space you need from creditors. This can be seen as one of the most beneficial parts of filing for bankruptcy since you will not have to face harassment from creditors any longer. They are barred from contacting you in search of compensation for your debts.

If your home is facing the possibility of foreclosure, filing for Chapter 13 bankruptcy may be able to stop this from happening. This is a major benefit since it can protect your home and allow you to continue living there. This can provide comfort to you when you are going through this difficult time. You should file a repayment plan within 14 days of the petition unless the court grants an extension. A meeting with you, your attorney, your trustee and creditors who wish to attend is held to discuss your financial situation and decide on a repayment plan that they approve of. You should have previously filed a repayment plan that detailed the schedule of compensation that the trustee will distribute to creditors. A judge will decide within 45 days if the repayment plan is sufficient and if cleared, the payments should begin within 30 days after filing.

Juan C. Velasco, Esq. is a trusted attorney who concentrates on bankruptcy, family law, real estate, and estate matters 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.