There are a few ways of making a bankruptcy claim in the US, depending on your individual personal and financial circumstances. There are three main types of bankruptcy claim, to include filing under a Chapter 7, Chapter 11 or Chapter 13. It is extremely difficult to make this decision based on your own knowledge so I would highly advise you to seek the advice of a qualified and professional bankruptcy attorney who will be in the best position to give you accurate information that will help you come to a decision. Although you must know about each type of bankruptcy and what it involves before you come to a decision, the purpose of this article is to explain to you how to apply for bankruptcy under Chapter 13.
Here are the steps that need to be taken if you are wondering how to apply for bankruptcy under Chapter 13:
• Have a good think about whether filing bankruptcy really is the right path for you to take or not. If you are in extreme debt, there may be other things that you can do or other avenues to take and bankruptcy should be the last option.
• Find out all you can about the various types of bankruptcy and then decide whether or not a Chapter 13 is the one for you. Just to give you an idea, a Chapter 13 bankruptcy is not for everyone; it is for those who have debts but also who have a secure regular monthly income with money left over each month so that a repayment plan can be formed and the spare money you have each month can be used for this. The repayment plan lasts typically 3-5 years and will see you debt free once that term is up.
• File your bankruptcy petition and your proposed repayment plan at your local bankruptcy court and pay the necessary fees. If you are using an attorney then they will do that for you.
• Present yourself at the 341 meeting of creditors and be prepared to answer relevant questions regarding your claim.
• Attend the court hearing where the Judge will either accept or dismiss your proposed repayment plan.
• All going well, you begin making your repayments to the trustee that has been assigned to your case and you must ensure that you make your payments in a timely fashion.
• If the worst happens and your proposed repayment plan does not get accepted then you may have to file under Chapter 7.