A Chapter 13 Bankruptcy is the reorganization bankruptcy available to individuals with regular income whose unsecured debts do not exceed $336,900 and whose secured debts do not exceed $1,010, 650.

A Chapter 13 involves a payment plan, whereby the debtor makes monthly payments to a court appointed trustee, who in turn pays the creditors all or a portion of the debts owed. The debtor is required to pay what he or she can afford to pay and must adhere to a budget.

It is an effective tool for people who can afford to pay some but not all of their debts. It is most commonly used when a homeowner has fallen behind in mortgage payments and cannot negotiate feasible arrangements to catch up the payments. It will immediately stop foreclosure proceedings, garnishments and repossessions, as well as any creditor collection actions. Typical Chapter 13 Bankruptcy plans range from 36 to 60 months.

Documents required for your case include:

• Original Social Security Card (You Must Bring this to the 341 meeting)
• Original Driver License or Government Issued ID (Also Required at 341)
• Green Card for non U.S. Citizens
• Bank Statements for 90 days preceding the filing of the personal bankruptcy.
• 401K, IRA, Annuity Statements for previous 90 days.
• Pay advices for 90 days preceding the filing.
• Automobile Title or Registration for all vehicles
• Current Market Value of all vehicles
• Proof of Insurance for all vehicles
• All Lease Agreements
• 3 Yrs of Income Tax Returns
• Copies of Property Deeds
• Proof of Real Property Debt (copy of last bill statement)
• Market Value of all Real Property
• List of all monthly expenses
• List of all assets with identifying descriptions. IE 2004 Ford Mustang
• Life Insurance policies that have cash value
• All legal documents pertaining to divorces or lawsuits which are pending or which have been finalized in the past 24 months
• All Judgments or court orders entered against you or in your favor
• Pre-Filing Educational Course Certificate
• Post-Filing Financial Management Course Certificate

If you are considering filing a Chapter 13 Bankruptcy, Contact our attorney.