Chapter 13 Bankruptcy
The goal in a Chapter 13 bankruptcy is to restructure a payment plan. If you can make and maintain timely payments, Chapter 13 allows you to retain property with significant equity, such as your automobile or home. Chapter 13 is intended for those who are struggling financially to maintain ownership of their property or have high household income.
If you don’t take full advantage of a Bankruptcy Chapter 13, you run the risk of losing your home in a foreclosure process.
You should consider filing a Chapter 13 plan if you:
-Are considerably behind on mortgage payments, but can catch up if you’re given enough time
-Are in danger of losing your home, but have the ability to make future payments
-Have valuable property, which is not exempt, and can afford to pay Chapter 13 plan payments
Your Chapter 13 Bankruptcy case begins by filing a petition with the bankruptcy court in your area. You will need to submit several items to the court. Some of these items include:
A complete financial statement.
A current listing of your assets and liabilities.
A list of your current income and expenditures.
A schedule of any loan contracts and unexpired leases.