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Tips About The Chapter 13 Bankruptcy Forms

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To begin filing for bankruptcy, you will fill out Chapter 13 bankruptcy forms in a packet called a “petition.” In this petition, you will include schedules of your assets and liabilities, your income and expenditures, and a statement of financial affairs. You must also have completed credit counseling within the past 180 days. The courts will then charge $235 to file your case and $39 for additional administrative fees, which you will pay the clerk when you file. If you don’t have the money, then you can often make up to four installment payments over the next several months. Due to the complex nature of these forms, many people find it easiest to have the power of attorney on their side during these proceedings.

Generally speaking, to be eligible for Chapter 13 bankruptcy forms, you must have unsecured debts of $336,900 or less and secured debts (including homes, cars, etc) of no more than $1,010,650. You will not be eligible if you’ve filed for any chapter of bankruptcy during the past 180 days or if your previous petition was dismissed due to your failure to appear in court. Consumer law mandates that most people filing for bankruptcy attend some form of credit counseling within 180 days before filing. In some instances, you may find other alternatives, like filling out debt management payment forms, instead of filing for bankruptcy, which will not have such negative repercussions on your credit report and financial future.

Many people wonder whether they should simply sign up for a debt consolidation plan with a credit counselor or if they should fill out the Chapter 13 bankruptcy forms as planned. There are several situations where filing bankruptcy forms would be more prudent. If your home is in danger of foreclosure, if your wages are already being garnished, if your license was suspended due to nonpayment or if your car was repossessed, then Chapter 13 would stop all court proceedings against you as you work out a more reasonable solution. Most debt consolidation companies will only include unsecured credit card debt and some personal loans, but a Chapter 13 filing will include child support payments that are in arrears, tax debt, car payments, medical bills and any other debt that can be rolled into a one affordable payment.

Most people who fill out Chapter 13 bankruptcy forms opt to make their repayments through a payroll deduction. That way, the money comes off your check each month and you don’t have to worry about having the money in your bank account or about saving up the cash to fulfill your obligations. In certain circumstances, you may receive a “Hardship Discharge,” where you will not need to continuously repay your creditors. Injury and illness that prevent you from working are the main reasons people receive discharges for their debts. This end is only reached if you paid as much as you would have under a Chapter 7 filing and if legal professionals can make no other modifications to your existing plan.

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Taking A Look At The Bankruptcy Form

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The focus of consumer law is often to protect those who really need help from losing access to benefits because a few shysters tried to scam the system. Yet the system isn’t always flooded by people who are unworthy of help. Given the current economic crisis, 1.1 million Americans sought bankruptcy form assistance in 2008, despite the passage of the prohibitive Bankruptcy Abuse Prevention and Consumer Protection law back in 2005 (which tightened restrictions for Chapter 7 filings). Moreover, there was a 78% increase in filings during the first quarter of 2009. “It shows you that a lot more people are hurting,” said Mike Bickford, president of Automated Access to Court Electronic Records. “Even with the more restrictive law in place, the filings are back up to the pre-law level.”

Most people acquire a bankruptcy form through an attorney. Usually, you can get a free evaluation meeting to determine your eligibility for the various chapters of bankruptcy and see if there are any alternatives to your situation. Before meeting to discuss court bankruptcy forms, you should assemble a full list of all your outstanding debts, including medical bills, credit cards, personal loans, auto loans and mortgage loans, along with the account numbers, the amounts owed, the minimum monthly payments and the number of months you are behind.

Next, you must fill out a bankruptcy form for either Chapter 7 or Chapter 13. Chapter 7 application forms enable you to write off all of your debt, without repaying. A trustee will then be appointed to manage some of your non-exempt assets, which will be sold off to satisfy your creditors. Assets you may lose when filing bankruptcy forms include expensive musical instruments, valuable stamp or coin collections, family heirlooms, antiques, most cash in bank accounts, stocks, tax refunds, second vehicles and vacation homes. In some cases, a “No Asset” filing may prevent you from losing any of your personal belongings. Similarly, you would not lose any assets in a Chapter 13 bankruptcy, but you would be expected to repay most of the money you owe over a 3-5 year period.

Once you fill out your bankruptcy form, you will need to meet with your lawyer again to attend a debt management counseling session. If you have been approved, then the record of bankruptcy will show up on your credit report for up to ten years, which may limit your ability to obtain new credit during that time. Many people are urged to avoid bankruptcy at all costs if they plan on buying a new home or car in the near future, applying for a student loan or using credit cards. Legal professionals may recommend debt consolidation or debt settlement as a first recourse to avoid bankruptcy proceedings.

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Insider Tips About Important Bankruptcy Facts

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Bankruptcy application forms wipe out debts quickly and efficiently, but not without repercussions. People who are planning to use credit cards over the next few years, take out an auto loan, buy a house or get a student loan will have difficulty gaining any sort of credit in the immediate five to seven years. Bankruptcy is one of the worst things that can appear on your credit report file for up to 10 years. Before you take that big step, be sure you’re clear on bankruptcy alternatives and bankruptcy facts.

First, let’s take a look at the most basic bankruptcy facts and what filing bankruptcy forms can and can’t do for you. Consumer law allows you the ability to legally eliminate most — if not all — of your debts through a bankruptcy discharge. This includes all credit cards, medical/hospital bills and some personal loans. If your car has been repossessed or your home in is foreclosure proceedings, court bankruptcy forms will put a stop to these actions. You’ll be able to stop wage garnishment, utility shut-offs and debt collector harassment as well. However, bankruptcy can’t completely absolve a car loan, a student loan or a mortgage payment. It cannot discharge alimony payments, child support payments, criminal fines, IRS tax debt or court restitution orders. Filing for bankruptcy cannot save you from debts you incur after the initial filing and cannot protect your spouse or cosigner.

Another one of the bankruptcy facts you should know is that there are multiple types of filings and you can only choose one for your situation. You could not, for instance, make a petition for a Chapter 7 bankruptcy and, upon rejection, then apply for Chapter 13 instead. You may come across online forms for Chapter 7 bankruptcy, which is known as “straight” or “liquidation” bankruptcy. In this case, you will give up property that exceeds exemption limits, which will be sold by a trustee to pay off creditors. In return, all your debts will be forgiven. Chapter 13 bankruptcy is called a “debt adjustment” and requires that you still pay back your debts each month, but restructures it in an affordable and reasonable way. In this case, you can still keep your personal property. Family farmers may be eligible for Chapter 12 bankruptcy and small businesses or individuals with enormous debts can file for Chapter 11.

Here are several more bankruptcy facts to consider. The court costs and legal professional fees can cost upwards of $1,000 in some cases and cannot be discharged. However, you can talk to your lawyer about ways to reduce your fees or wrap the costs up into your Chapter 13 payments. Be aware that property can be lost in a Chapter 7 filing if your assets exceed the state/federal exemptions. However, you can sometimes recover your favorite possessions by paying the difference from the exemption. Bankruptcy will appear on your credit report for 10 years, which will impact your ability to rent an apartment, buy a home, buy a car, take out a student loan, gain access to credit cards or sometimes even get a job. However, you may begin rebuilding your credit by continuing to make regular payments on your car or home and taking out a loan from yourself, which you pay off each month.

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