Guide on the process of chapter 13 bankruptcy

As per the guidance of corporate bankruptcy attorney Dave Roemerman, there is certain information that you will have to gather before you file the Chapter 13 bankruptcy. The information required includes:

  • A list of the various creditors as well as the nature and amount of their claims
  • Your income description includes the amount, source, and the frequency
  • Paystubs for the last 6 months
  • State and federal income returns for the past 2 years
  • A list of your properties such as real estate, vehicles
  • A list of the living expenses that you incur monthly that includes clothing, food, utilities, shelter, transportation, taxes, and medication

If you happen to be living together or married, you will have to get all the above information regarding your partner even if you are not going to do a joint petition filing with them. That is because the court will utilize it in evaluating your overall condition financially. If you are living together and you are unmarried or are separated, then the non-filing significant other or spouse has to prove their income.

Before you file for bankruptcy, you need to go to credit counseling to get a certificate for credit counseling. You have to obtain that from a counseling agency that is on the approved list of the government. There is a fee which you will have to pay to the credit counseling, but the company which provides the counseling needs to ensure that you can afford the fee, and thus, it is based on your payment ability.

To begin your bankruptcy, you will be required to file a bankruptcy petition along with some or all the below documents:

  • Assets list
  • Liabilities list
  • Current expenses and income list
  • Financial affairs statement
  • Leases and contract list
  • Tax return copy or the transcripts for the most recent tax year
  • Proof that you were at the agency of the credit counseling
  • A copy of any plan for debt repayment that you were able to make in the credit counseling
  • Evidence of payment of 60 days payment received from an employer before you filed
  • Monthly net income statement and any increase that you expect in the expenses and income after you file
  • Records of any interest that you have in tuition or education accounts
  • A list of the exempt property

There are certain fees that you will be required to pay so that you get to file the bankruptcy. Examples include administrative fees, filing fees, and trustee surcharges.