Filing Chapter 13
Bad Debt Consolidation by splinder
Filed under Bankruptcy
Chapter 13 allows an individual with regular income to reorganize debts. This plan offers a debtor extended time to repay the loan while restricting creditors’ actions against payment defaults. Filing a Chapter 13 case requires the debtor to launch a petition with the bankruptcy court.[br]
Filing Chapter 13: Initial Process
For filing Chapter 13, an individual can visit a bankruptcy court in his/her area of domicile or residence. While filing the petition, the following details are required:
- List of assets and liabilities.
- Schedule of monthly income and expenditure.
- Schedule of unexpired leases and contracts, if any.
- Recent financial statement certified by the bank where debtor holds account.
- Salary slips from the employing organization for last six months (for salaried employees).
- Declaration of any anticipated hike in income after filing.
- Statement of interest in state qualified education accounts.
- Certificate of counseling from a state-approved credit counseling agency.
- Detailed proof of repayment plan. Also attach copies of this plan as sent to creditors.
- Tax return statement for the most recent tax year.
An individual can file a petition in conjunction with his/her spouse. However, individual documents for both husband and wife have to be attached along with the form.
Filing Chapter 13: Other Information
Apart from individual statements and schedules, the following information is also essential for filing Chapter 13 forms:
- List of all creditors along with their claim amounts and nature of claims
- Detailed list of debtor’s property
- Classified lists of debtor’s expenses, such as food, clothing, rents, taxes and transportation.
Married couples must calculate household expenses and cumulative income of the family for filling the form. The court requires this information to understand the overall financial situation of the family in debt.[br]
Filing Chapter 13: Fees
As of November 2009, US courts charge $235 as case fees for filing Chapter 13 and $39 as administrative fees. With special permission, the fees can be paid in installments over a maximum period of 180 days.
Even if a couple is filing Chapter 13, the fee is for a single case.