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Chapter 13 Bankruptcy Forms: Reorganizing Your Debt
Do you currently have stacks of unpaid pills that, for one reason or another, you are not currently able to pay? Have you considered personal bankruptcy, but are hesitant to file for this protection for fear that your credit will forever be ruined or your property seized? If so, you may be a good candidate for Chapter 13 bankruptcy. To help you become more familiar with this type of bankruptcy, in the article below we will discuss the process and requirements it usually entails, including some of the Chapter 13 bankruptcy forms you’ll be required to submit to the court.
Understanding Chapter 13 Bankruptcy
Unlike the more popular Chapter 7 bankruptcy, in which most or all of your debts are forgiven, Chapter 13 bankruptcy is a process in which you agree to pay back a portion, if not all of your debt over a 3-5 year period. The advantage of Chapter 13 bankruptcy, at least for some people, is that you get to keep all of your personal property. This is not always the case with a Chapter 7 bankruptcy, as the judge or trustee may require you to sell or liquidate some of your personal property to pay your creditors. Due to the way Chapter 13 bankruptcy works—arranging your debt so that you can meet your creditor’s obligations—it is also called a reorganization bankruptcy.
Due to the fact that in Chapter 13 bankruptcy you will have to repay some or all of your debt, not all people will be eligible for this type of protection. Individuals with insufficient or irregular income, for example, may be prohibited to file if the judge or trustee has concerns as to whether or not the person can meet his/her obligations.
There are also some financial limits when it comes to filing for Chapter 13 bankruptcy—dollar limits in terms of the debt you owe. When filing for Chapter 13 bankruptcy your total debt cannot exceed $1, 010,650, and your unsecured debt—debt in which you owe for a particular item or items that a creditor could take back to help settle the debt—cannot exceed $336,900. One example of a secured debt is an automobile loan, giving the creditor the right to repossess that car if payments are not satisfied. Unsecured debt refers to things like credit cards, with which many different items were purchased.
Chapter 13 Bankruptcy Forms: What Is Required?
With any type of bankruptcy, including Chapter 13 bankruptcy, there are a number of forms that must be filed. Chapter 13 bankruptcy forms include:
• Income/Debt Statements. Filers must prove their income and total monthly obligations when filing for Chapter 13 bankruptcy.
• Property Declaration. Here petitioners must list all of their real property: homes, land, cars, boats, equipment, etc.
• Creditor List. Each creditor must be listed when filing for Chapter 13 bankruptcy. For example, filers are not allowed to omit a certain creditor in an effort to keep one good account.
The Chapter 13 bankruptcy forms are very similar to the ones required for Chapter 7 bankruptcy, with one exception. Those filing under Chapter 13 will also be required to submit a repayment plan for the trustee to approve. This is not an official Chapter 13 bankruptcy form, but many states and counties have their own forms for this purpose.