An Overview Of The Chapter 13 Bankruptcy Forms

application forms

Filing for bankruptcy can be confusing. You may be wondering, “Should I fill out Chapter 7 or Chapter 13 bankruptcy forms?” When you think of bankruptcy, you may assume that you fill out the application forms and walk away without paying off any of your debts. As you may have heard, you are liable to lose personal belongings like boats, cars, heirlooms, inheritances, guns, musical instruments or other expensive items. This is known as Chapter 7 “Liquidation” bankruptcy. On the other hand, Chapter 13 bankruptcy is better for people who are worried their homes may be lost to foreclosure. Perhaps you are still a wage earner and you have assets you don’t want to lose. You may still be eligible for file for Chapter 13 bankruptcy, which is similar to a consolidation loan.

Generally speaking, to be eligible for Chapter 13 bankruptcy forms, you must have unsecured debts of $336,900 or less and secured debts (including homes, cars, etc) of no more than $1,010,650. You will not be eligible if you’ve filed for any chapter of bankruptcy during the past 180 days or if your previous petition was dismissed due to your failure to appear in court. Consumer law mandates that most people filing for bankruptcy attend some form of credit counseling within 180 days before filing. In some instances, you may find other alternatives, like filling out debt management payment forms, instead of filing for bankruptcy, which will not have such negative repercussions on your credit report and financial future.

Compared to Chapter 7, there are several advantages offered in filing Chapter 13 bankruptcy forms instead. First of all, Chapter 13 will give you an opportunity to save your home if it’s in foreclosure. You’ll be able to stop the proceedings and catch up on delinquent payments. If you have secured debts aside from your mortgage, you will be able to spread them out over the length of your new plan (usually 3-5 years), which will decrease your monthly payments. In this way, a Chapter 13 is similar to a debt consolidation plan. However, court bankruptcy forms are unique in that they have the power to halt more than just creditor phone calls, as they can stop foreclosures, repossessions, garnishments and license suspensions too.

Most people who fill out Chapter 13 bankruptcy forms opt to make their repayments through a payroll deduction. That way, the money comes off your check each month and you don’t have to worry about having the money in your bank account or about saving up the cash to fulfill your obligations. In certain circumstances, you may receive a “Hardship Discharge,” where you will not need to continuously repay your creditors. Injury and illness that prevent you from working are the main reasons people receive discharges for their debts. This end is only reached if you paid as much as you would have under a Chapter 7 filing and if legal professionals can make no other modifications to your existing plan.