subject: Do You Need To File For Chapter 13? [print this page] Since there are several kinds of bankruptcies, it can be very easy to become confused about which one can give you the financial relief you seek. That is why you need to learn all you can about each one before you decide to file. If you have come to the conclusion that Chapter 13 is the best option for you, you need to understand what is involved to improve your chances. When you are buried in debt so deep that you can't find a way to meet any of your financial obligations, you have the option of turning to the courts to get some assistance. You should only file for Chapter 13 after you have exhausted all other options for getting yourself back on track. Even though you are trying to save money, it is in your best interest to hire a bankruptcy lawyer. You can't afford to make any mistakes with your case. They can guide you and make sure that all requirements are fulfilled to improve your chances. Keep in mind that if this is not your first time seeking bankruptcy protection, you cannot apply for chapter 13 if your previous case was dismissed within the last 6 months.
Unlike chapter 7 bankruptcy, Chapter 13 is specific for people who are in financial trouble but are not seeking to have all of their debts discharged. It is for people who want to pay off what they owe but need more time than they are currently being given. The thing about this type of bankruptcy is that it can buy you more time to pay off your debts. For instance, if your creditors are demanding full payment of what you owe within the next six months and even though you have regular income, it is not possible to meet their demands, you could file for bankruptcy and get up to three to five years to do so. By law, anyone who owes a total debt of less than approximately $200,000 can file for chapter 13; however the amount of their secured debt cannot be more than approximately $805,000.
It is very important that any paperwork that is being requested is filled out in its entirety. You must provide the courts with any documents they are requesting. This is where a good bankruptcy lawyer comes in handy. Anything that you can't get your hands on, your lawyer will be able to secure it for you. You will want to hire legal representation so they can attend all of the meetings and hearings you will have. Once you file your petition, there will be a hearing with all of your creditors. During this hearing, you will be questioned about your financial situation and what assets you may have. You have to be completely honest or you may end up losing your petition. Your bankruptcy lawyer can help guide you through the whole process until the bankruptcy judge is ready to issue a ruling on your behalf.
