A Simple Way For Filing For Bankruptcy Chapter 13

There are majorly two types of bankruptcy that a debtor can go for. One is `chapter 7`, and the other is chapter 13. This article will talk about the `chapter 13` bankruptcy in detail. Well, it is a kind of bankruptcy where the debts of the debtor, who is declaring himself bankrupt, are restructured, and a new plan for payment is developed. Thus, chapter 13, bankruptcy is helpful for the debtor with enough income to create a plan to payoff his debts. This type of bankruptcy is chosen by the debtors when they are asked to pay the immediate payment to the creditors.
The process of filing for chapter 13 When a debtor is filing for bankruptcy chapter 13, the first thing that he will need to do is to find an attorney who would work for some fees. He helps the debtor in estimating the cost of filing. After getting the attorney, the debtor needs to provide the following: • All the information regarding the creditors and the amount of the claims. • The debtor will also need to disclose all the sources of his income of the previous year and the income he will be getting in advance. • He will be required to provide the information regarding the property that he holds under his ownership. • He will also be required to list down his monthly expenses and information of the taxes that he pays.
Once the above steps are executed, the debtor develops his repayment plan that is given to the judge, who ensures that the plans are by the bankruptcy code. Once everything is decided, the debtor is expected to work according to settlement details. This is a good bankruptcy option where the debtor can reorganize his debts and repay some of them with a repayment plan, and its policies are very clear and easy to understand.