How to File for Chapter 13 Bankruptcy Englewood CO

Steps

1. Determine whether bankruptcy is the best choice for you. If you are in trouble financially, there are a number of things you can do to get yourself back on track. Bankruptcy should be considered your last resort.
2. Determine if chapter 13 is the right bankruptcy option. Chapter 13 is an alternative to chapter 7, and is designed for people with a regular income, who want to pay off their debts, but need a certain amount of time to do so. In chapter 13, debtors repay their creditors either in full, or in part, over a period of up to three years. In some cases, you could repay your creditors over five years. Anyone can apply for chapter 13 bankruptcy if their debts are less than $269,750, and their secured debts are less than $807,750. However, corporations, partnerships, and those who have had a bankruptcy petition dismissed in the past 180 days cannot file under chapter 13.
3. File a petition. You must file a petition with the bankruptcy court in your home district. Along with the petition, you must also file a schedule of assets and liabilities, current income and expenditures, executory contracts, and unexpired leases. A schedule of exempt assets is also filed. You must purchase your bankruptcy forms at a stationary store as they are not available from the court. Your could also ask your attorney to help you fill out the forms.
4. Pay your fees. When filing for bankruptcy there are a number of necessary fees to take care of. You must pay a court filing fee of $155, and a miscellaneous administrative fee. Once the petition is filed, most legal actions are ?stayed". This means that most creditors will not be able to continue lawsuits, garnish wages, or call you on the telephone to demand payment.
5. File a plan of repayment. The plan of repayment can either be filed with the petition, or no later than 15 days after.
6. Attend a meeting of creditors. This meeting is typically held 20-50 days after you file the petition. It is crucial that you attend this meeting, as it will allow your creditors to ask you questions regarding your assets and financial situation.
7. Attend the confirmation hearing. This hearing will be held in court, and a bankruptcy judge will determine if your plan of repayment is feasible, and meets all Bankruptcy Code standards. Creditors are informed of this hearing, and they are allowed to object to confirmation. This is most common when the payments in the plan are less than what they would receive in a chapter 7 liquidation, or if the debtor?s plan does not commit all of his or her projected disposable income for the three year period of the plan.
8. Begin making your payments! Within 30 days of filing the plan, you must start making your payments to the attorney, even if your payment plan has yet to be approved by the court. If your plan is not approved, you can modify it, or consider changing over to a chapter 7 liquidation. (Chapter 7 should be considered the very final option).

Tips

• For more information on personal bankruptcy, visit http://www.bankruptcy-america.com
• For Chicago bankruptcy assistance visit Leeders & Associates, LTd. at http://www.leederslaw.com

Warnings

• It is advisable to hire an attorney as chapter 13 is extremely complex. A bankruptcy plan can pay some creditors as low as 10 cents on the dollar, up to 100% of the claim, so your attorney can help design a plan based on your unique position.

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