If you are facing debt the good news is that there are a number of strategies that you can use to overcome the cycle of debt once and for all. Under a Chapter 13 bankruptcy you get the option of repaying your creditors over a 3 to 5 year repayment plan. This solution could also help to protect your assets such as a car or your home. In order to “qualify” for Chapter 13 Bankruptcy, your total debt must be below a certain amount.
In order to be able to file for Chapter 13 bankruptcy you will have to submit certain paperwork to your lawyer, the Bankruptcy Court, and/or the Chapter 13 Trustee. You need to submit proof that you have continued to file for federal and state income tax returns for the last two years prior to your bankruptcy filing date or submit proof that you were not required to file returns. You also need to be able to demonstrate that you have adequate disposable income to be able to make some amount of regular monthly payments in your case.
The basics that you need to file Chapter 13 bankruptcy include:
- Your bankruptcy paperwork
- List of creditors and amounts owed
- Tax returns
- Proof that you have sufficient disposable income to cover the costs of bankruptcy repayment.
- Your proof of income can come from a number of different sources such as:
- Your pension
- Real estate rent payments
- Social security benefit payments
- Income from self-employment.
If you are interested in learning whether or not you could qualify for this type of bankruptcy relief, contact our bankruptcy lawyers to learn more.