Wanting to know all the details of filing Chapter 13 is prudent. You should definitely know when you can file Chapter 13, if you qualify or not, and all the other important aspects of the process of filing for bankruptcy.

If, on the other hand, you find that Chapter 7 works better for you, you should do the same – learn about how Chapter 7 works and inform yourself about whether you qualify for Chapter 7, as well as everything else you can find out about it.

For now, we’ll stick to explaining all you need to know about Chapter 13. However, if you end up still having questions, it’s best to contact one of the leading bankruptcy lawyers in your vicinity and schedule a consultation.

What do I need to know about filing Chapter 13?

When filing Chapter 13 bankruptcy claim, there are three important aspects you should always consider – whether you qualify for Chapter 13, what the process of filing Chapter 13 is like, and when you can be denied Chapter 13 bankruptcy claim.

When do I qualify for Chapter 13?

According to the California Department of Justice, you have to meet the following criteria if you are to be deemed eligible for Chapter 13 bankruptcy claim:

  • You must prove that you are an individual and not a business entity
  • You have to file proof that you haven’t discharged any debts under Chapter 13 bankruptcy claim during the prior two years, as well as that you haven’t been allowed the same under Chapter 7 bankruptcy claim during the prior four years
  • You have to prove that the court hasn’t denied your bankruptcy claim within the last six months.
  • You have to file proof that an approved agency for credit counseling has provided you with debt counseling six months before you decided to file Chapter 13.
  • Your debts mustn’t be too high.

What is the process of filing Chapter 13?

Now, let’s take a closer look into the steps in the process of filing Chapter 13:

  1. Analyzing your debt.
  2. Estimating the value of your property.
  3. Gauging your monthly income.
  4. Filling out all the forms necessary for filing for bankruptcy.
  5. Taking the credit counseling course before filing for bankruptcy.
  6. Filing the forms and paying court fees.
  7. Providing trustees with all the documents that are proof of your monthly income, as well as all the other assets you possess.
  8. Attending the two hearings obligatory during the process of filing for bankruptcy.
  9. Making timely and exact payments.
  10. Taking the debtor education course upon successfully filing for bankruptcy.
  11. Receiving the bankruptcy discharge.

If the process seems a tad complicated, and, let’s face it, it might, you should consider consulting a bankruptcy lawyer about it all.

When can the court deny my Chapter 13 bankruptcy claim?

Individuals are rarely denied Chapter 13 bankruptcy. However, there are some instances of it, and they are usually because of one or several of the following reasons:

  • You haven’t undergone credit counseling.
  • You do not meet the specific requirements concerning your monthly or yearly income.
  • You have too much debt to successfully file Chapter 13.
  • You have missed one or more tax returns during recent years.
  • You work as a commodity broker or a stockbroker.
  • You have filed for bankruptcy too recently.

 

“Who are the most reputable bankruptcy lawyers?”

If you’re looking for the leaders in bankruptcy law, you should look no further than Chang & Diamond – the most renowned bankruptcy experts in San Diego. We will help you with all the aspects of filing for bankruptcy, and help you get out on top. So, if you’re on your way to La Jolla Cove to get your mind off things a bit, stop by our offices first. We’re here to help you!