{"id":1168,"date":"2020-10-16T12:15:26","date_gmt":"2020-10-16T12:15:26","guid":{"rendered":"https:\/\/www.karinalucidlaw.com\/?p=1168"},"modified":"2022-10-04T16:05:01","modified_gmt":"2022-10-04T16:05:01","slug":"what-is-chapter-13-bankruptcy","status":"publish","type":"post","link":"https:\/\/www.karinalucidlaw.com\/what-is-chapter-13-bankruptcy\/","title":{"rendered":"What is Chapter 13 Bankruptcy?"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Chapter 13 bankruptcy, also known as the wage earner\u2019s plan, is a debt relief option available to debtors who don\u2019t qualify for a <a href=\"https:\/\/www.karinalucidlaw.com\/chapter-7-bankruptcy\/\">Chapter 7 bankruptcy<\/a> or want to be able to keep their home and car in bankruptcy. It\u2019s the bankruptcy option for individuals whose main issue is not a lack of income, but meeting the demands of the creditor for immediate payment.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Under bankruptcy Chapter 13, a debtor has three to five years to repay all or a portion of their debts according to the reorganization plan for their bankruptcy case. By coming up with a plan to restructure their debts and make monthly payments over a long period, bankruptcy petitioners can catch up on missed loan and <a href=\"https:\/\/www.karinalucidlaw.com\/is-it-hard-to-get-a-mortgage-after-bankruptcy\/\">mortgage<\/a> payments while eliminating their unsecured debt.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you\u2019re considering bankruptcy but aren\u2019t familiar with the different types of bankruptcy, speak with a <\/span><b>local bankruptcy attorney<\/b><span style=\"font-weight: 400;\"> and to learn which type of consumer bankruptcy best fits your situation.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Who can File<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Debtors who wish to file for personal bankruptcy under Chapter 13 should meet the following criteria:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">You should have the means to pay eligible debts in your repayment plan and provide documents to prove your ability to do so.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Your tax filings should be current, and you shouldn\u2019t have back taxes or unpaid taxes.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Your unsecured debts, such as credit card debt and medical bills, should not exceed $394,000.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Your secured debts, such as mortgage arrears and car loans, should not exceed $1,184,000.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\"> <img loading=\"lazy\" decoding=\"async\" class=\"alignright  wp-image-1169\" src=\"https:\/\/www.karinalucidlaw.com\/wp-content\/uploads\/2020\/10\/chapter-13-bankruptcy-300x200.jpg\" alt=\"what is chapter 13 bankruptcy\" width=\"356\" height=\"237\" srcset=\"https:\/\/www.karinalucidlaw.com\/wp-content\/uploads\/2020\/10\/chapter-13-bankruptcy-200x133.jpg 200w, https:\/\/www.karinalucidlaw.com\/wp-content\/uploads\/2020\/10\/chapter-13-bankruptcy-300x200.jpg 300w, https:\/\/www.karinalucidlaw.com\/wp-content\/uploads\/2020\/10\/chapter-13-bankruptcy-400x266.jpg 400w, https:\/\/www.karinalucidlaw.com\/wp-content\/uploads\/2020\/10\/chapter-13-bankruptcy-600x400.jpg 600w, https:\/\/www.karinalucidlaw.com\/wp-content\/uploads\/2020\/10\/chapter-13-bankruptcy.jpg 626w\" sizes=\"(max-width: 356px) 100vw, 356px\" \/>You need to provide paperwork proving that you meet these criteria along with your bankruptcy petition. The following are the documents you need to present:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Your source of income (i.e. pension; royalties, rent, and proceeds from a property sale; Social Security benefits; or unemployment compensation); and<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Your state and federal tax returns for the past four years.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">If you have filed for bankruptcy in the past, talk to a <\/span><a href=\"https:\/\/www.karinalucidlaw.com\/\"><b>bankruptcy lawyer<\/b><\/a><span style=\"font-weight: 400;\"> to know whether you\u2019re eligible to file for bankruptcy.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">How to File<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The first thing you need to do is to fill out the bankruptcy forms and provide all the necessary paperwork for your bankruptcy petition. You can get a bankruptcy petition preparer or hire a <\/span><b>bankruptcy attorney<\/b><span style=\"font-weight: 400;\"> to help you accurately complete the bankruptcy petition. Some of the information you need to provide in your bankruptcy filing include:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Your monthly income and proof of your source of income;<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Your monthly living expenses;<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">List of all your creditors and the amount of their claims;<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">List of all your property;<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">List of your assets and liabilities; and<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Your tax returns.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Before filing bankruptcy petitions, you also need to complete a credit counseling course from an approved credit counseling agency and obtain a certificate of completion for filing.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To file for bankruptcy, you need to submit your bankruptcy petition and credit counseling certificate to the bankruptcy court and pay the appropriate filing fees. A bankruptcy trustee will be assigned to your case shortly after filing, and they may request documents to provide additional information regarding your bankruptcy case.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">After filing bankruptcy, you need to draft your proposed repayment plan. This involves restructuring your debts to come up with a repayment plan that\u2019s within your disposable income. Your proposed payment plan will be evaluated by a bankruptcy judge in your scheduled bankruptcy hearing. A creditor may raise objections before and during the hearing, but the court will have the final say in implementing the plan.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Once your repayment plan is confirmed, you should strive to meet the monthly payments you and your creditors agreed on. You\u2019re not allowed to have late or missed payments, but you can pay in advance if you wish to receive your bankruptcy discharge earlier.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If your financial situation changes and you won\u2019t be able to meet your plan\u2019s requirements, you can file a motion to modify your plan. Make sure to inform your bankruptcy trustee if you wish to make any modifications to the repayment plan.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Before you complete the plan, you\u2019ll need to take a debtor education course to be able to declare bankruptcy. When you receive the declaration of bankruptcy, your debts are wiped out and your <a href=\"https:\/\/www.karinalucidlaw.com\/chapter-13-bankruptcy\/\">Chapter 13<\/a> case will be discharged.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Hiring a Bankruptcy Attorney<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The bankruptcy process can be complicated for individuals who aren\u2019t familiar with bankruptcy laws, but it can give you the financial fresh start that you\u2019re looking for. If you\u2019re struggling with debt and you think that filing bankruptcy is the debt-relief option for you, call us today at <\/span><b>Karina Lucid Law<\/b><span style=\"font-weight: 400;\"> and get the legal assistance you deserve!<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Chapter 13 bankruptcy, also known as the wage earner\u2019s plan, is a debt relief option available to debtors who don\u2019t qualify for a Chapter 7 bankruptcy or want to be able to keep their home and car in bankruptcy. It\u2019s the bankruptcy option for individuals whose main issue is not a lack of income, but meeting the demands of the [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":1170,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[138],"tags":[116,139,140],"acf":[],"_links":{"self":[{"href":"https:\/\/www.karinalucidlaw.com\/wp-json\/wp\/v2\/posts\/1168"}],"collection":[{"href":"https:\/\/www.karinalucidlaw.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.karinalucidlaw.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.karinalucidlaw.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.karinalucidlaw.com\/wp-json\/wp\/v2\/comments?post=1168"}],"version-history":[{"count":1,"href":"https:\/\/www.karinalucidlaw.com\/wp-json\/wp\/v2\/posts\/1168\/revisions"}],"predecessor-version":[{"id":4066,"href":"https:\/\/www.karinalucidlaw.com\/wp-json\/wp\/v2\/posts\/1168\/revisions\/4066"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.karinalucidlaw.com\/wp-json\/wp\/v2\/media\/1170"}],"wp:attachment":[{"href":"https:\/\/www.karinalucidlaw.com\/wp-json\/wp\/v2\/media?parent=1168"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.karinalucidlaw.com\/wp-json\/wp\/v2\/categories?post=1168"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.karinalucidlaw.com\/wp-json\/wp\/v2\/tags?post=1168"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}