You’ve accrued large amounts of debt over the past several years, and now, you feel like you’re drowning. As a result, you’re seriously considering filing for Chapter 13 bankruptcy to break free from your debt once and for all.
If it’s of any consolation to you, you’re not the only person experiencing unmanageable amounts of debt. Research shows that the quantity of bankruptcy cases not related to businesses was more than 752,000 in America back in 2019.
The question is, how exactly do you go about filing for Chapter 13 bankruptcy? If you’re in over your head when it comes to finances, here’s a rundown on how to declare bankruptcy.
Let’s get started.
How to Declare Bankruptcy
Filing for Chapter 13 bankruptcy involves agreeing to a repayment plan involving partially reducing any non-secured debt you have. It may also lead to lower interest rates for your secured debt.
To declare Chapter 13 bankruptcy, you’ll first need to compile your financial records. These records should include information about your expenses, income, assets, and debt. This will help you to better understand your current financial situation.
Next, you must complete mandatory bankruptcy counseling. This will help to assure the bankruptcy court that you have truly exhausted all possibilities prior to declaring bankruptcy.
Afterward, you can fill out your bankruptcy work. The forms include more than 20 separate forms that ask you questions about what you owe, own, make, and spend. You’ll also be required to pay a filing fee when you file your petition with the bankruptcy court.
Additional Considerations Regarding Declaring Bankruptcy
After the court accepts your petition, a bankruptcy trustee will be assigned your case. This person will arrange to meet with you and possibly your creditors, who will be able to ask the trustee or you questions concerning your case.
This meeting will likely take place about a month after your case has been filed. The trustee will then be responsible for making sure that your proposed plan for repayment complies with legal requirements.
Before you file for bankruptcy and attend the meeting, it may behoove you to hire a lawyer to help you. That’s because judges aren’t allowed you provide you with advice, and that’s not the trustee’s job, either.
An example of a bankruptcy lawyer are the ones found at https://obryanlawoffices.com/bankruptcy-attorney/types-of-bankruptcy/chapter-13-bankruptcy/. They can help you to follow the necessary procedures for ensuring the best outcome for your case.
Embark on the Process of Filing for Bankruptcy with Confidence
Dealing with large amounts of debt can understandably take a toll on your financial health and emotional health. Fortunately, bankruptcy can be a powerful tool for finally relieving unsurmountable debt.
Of course, to take advantage of bankruptcy, you must have a thorough understanding of the steps involved in this legal process. Follow the above-listed steps for how to declare bankruptcy to finally reclaim your financial health and peace of mind in the years ahead.
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