What Takes Place With Chapter 13 Bankruptcy?

When you enter file Chapter 13 bankruptcy you need to be prepared to open up your finances to the court and the bankruptcy trustee. You will have to provide the bankruptcy court with a list of your assets and liabilities. Even if you fear that there is a risk of losing your property, you must disclose ALL your personal property in order to set a clear picture of your estate to the bankruptcy court. You will have to show what your current income and expenses are. You will have to have a schedule of contracts and any leases that are not expired, and you will have to have a statement of your financial affairs. Your answers on this form will help the bankruptcy court pay creditors in a fair and unbiased manner when setting up a payment plan. Depending on where you live, your case will likely be filed with the Sacramento bankruptcy court, which is part of the Eastern District Federal Bankruptcy Court.

You will have to go through credit counselling that is approved by the bankruptcy courts and file a certificate of having completed this requirement. You will also have to take a second financial management class. There are specific timeline requirements surrounding when you obtain your credit counselling certificate and when you file for bankruptcy. You will also have to have a debt repayment plan that has been developed. There may be other things that are required as well for you to take advantage of the Chapter 13 bankruptcy.

Chapter 13 bankruptcy is a complex process. In fact, according to a study by the Central District Bankruptcy Court, less than 1% of people without an experienced Chapter 13 attorney succeed in their Chapter 13 bankruptcy. Therefore, using the services of a qualified bankruptcy attorney to assist you with your Chapter 13 bankruptcy is highly recommended by the United States bankruptcy courts and the bankruptcy trustee. Among the reasons to use an experienced California bankruptcy attorney are: advise you of tax issues, recommend which chapter is best, and whether you should seek a different form of debt relief. This doesn’t matter whether you are going to a Chapter 13 or a Chapter 7, the bankruptcy chapters can be very complex and you will require professional assistance.

Once everything has been supplied that you are required to submit, a repayment plan will be approved and this is what your Chapter 13 bankruptcy will consist of. It will last for a specified period of time (typically 3 to 5 years) in which you will repay as outlined. Once you have completed your responsibilities and doing this then your bankruptcy will be completed.