Know the Basics of the Filing Chapter 13 Wage Earner Bankruptcy
sapan | Bankruptcy, Mortgage Refinance | September 6th, 2010 Comments Off
An individual or sole proprietor can file Chapter 13 Bankruptcy. Chapter 13 is a reorganization plan for people who want to pay off their debts over a period of three to five years. Like Chapter 11, you’ll go through a “means test” to determine the amount of debt you’ll have to pay back and how long you have to do it. While applying chapter 13, the person places his current loans to begin paying off in order to protect their assets. It’s essential to be eligible for Chapter 13 prior getting to know how to filing for bankruptcy.
It’s important to have regular earnings, which is sound and steady. Disposable income is income left over after you pay for basic life requirements, such as food and utilities. You can’t have more than $1,081,400 in secured debt (property or other assets a creditor might take if you don’t make payments) and $360,475 in unsecured debt. These amounts change sometimes to reveal changes in the Consumer Price Index. In addition there is a court filing fee.
You can avail the help of an expert attorney, which guides you on how to file for bankruptcy in a best way. First, you file a bankruptcy petition Court. You must bring a list of creditors, assets and liabilities and current income and expenses. Filing of “Statement of Financial Affairs” is also necessary. It must provide the following:
- Earnings from employment or business operations comprising of amounts and sources
- Other income
- Payments made to the creditors within 90 days of the filing
- A list of complaints that you were a party to within a year of filing
- All property, including that which was garnished or seized
- Gifts and charitable contributions made under one year of filing
- Transfers of property made within two years before filing
- Property transferred to a trust within 10 years prior to filing
- Financial accounts that were closed within one year
- The information or details stated must be genuine and authentic
- A payment plan is required to be enclosed
If you are well aware about the procedure of Should I File For Bankruptcy online it would make your process faster.
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