Everybody seems to be in financial trouble these days and although it's never pleasant, some situations are worse than others.
If you're in way over your head, you may want to consider what chapter 13 bankruptcy can do for you.
Bankruptcy can be a financial life-saver: here's how to plan for chapter 13 proceedings.
1.
Evaluate your standing.
Most people look at bankruptcy as a last resort and you should too.
Consult with an expert if you can, many advisers will talk to you at no cost, and make sure chapter 13 bankruptcy is the right option for you.
2.
See how chapter 13 fits your life.
This form of bankruptcy is mainly for people who still wish to pay off their debts, only with a greater time period to do it.
Regular income is expected to facilitate the process, so understand your obligations both immediately and long-term.
3.
Prepare to file a petition.
This will be necessary to begin the proceedings.
Be prepared with a list of your assets, liabilities, exact earnings, current contracts and leases you are obligated to and more.
The petition for chapter 13 bankruptcy will be filed in the district court of your residence.
4.
Have fees in hand.
Filing means paying, unfortunately, and although you are petitioning the court to prove you're running out of money (or already have) they will want substantial fees.
Know what they are and have them ready.
5.
Your repayment plan.
This can accompany your petition or follow it up within 15 days.
It will specify how you plan on meeting your financial obligations to the court.
Make sure you are honest with them and yourself; you will be held to this plan.
6.
Get ready for a meeting.
Once your petition is filed, creditors are granted the opportunity to sit down with you and ask questions.
Probably not something you're going to be looking forward to, but it is required.
Have answers ahead of time, practice what you will say to them and be prepared to back up your statements with proof.
This meeting will take place within a month of your filing, give or take a week or so.
7.
The confirmation hearing.
Next in your chapter 13 bankruptcy proceedings will be presenting your coordinated plan to a judge.
He or she will look at what you and your creditors have come up with to make sure it's in compliance with all bankruptcy laws and that the terms are feasible for you.
Everyone you owe is informed of this meeting and legally entitled to object to your plan.
If they'd get more money out of you if you filed some other way, such as with a chapter seven instead, you may be back to square one.
8.
Adjust to payments.
Provided your confirmation goes according to plan, you'll now be expected to start paying according to its terms.
Lawyers will be first on the list, then you must make every effort to make regular payments as specified in your filing.
Bankruptcy will not be easy, but it could be the solution that saves you financially.
Know your options and think carefully; these decisions will impact your life for a long time to come.