Chapter 13 Bankruptcy Rules

Before you file for Chapter 13, you should learn about how the process works and about the Chapter 13 bankruptcy rules. The process for applying for Chapter 13 bankruptcy is very standardized, and it is best to follow the rules to the best of your ability in order to get the help that you need.

Who is Eligible for Chapter 13?

If you are curious about the Chapter 13 bankruptcy rules, you are probably wondering about the most important rules: the ones that dictate just who is eligible for Chapter 13 and who is not. If you have credit card debts or other debts, and you are not able to make payments, Chapter 13 might be right for you. If you make minimum payments on these debts and creditors and debt collectors are still calling you about what you owe, you should consider Chapter 13 as a great option. Those people who might have to go through foreclosure without help may also be great candidates for Chapter 13.

Your First Steps: Beginning your Application

The first step you have to follow is make sure you file the Petition for Chapter 13. You can do this using a two-page form, which is very simple. Fill out this form, make sure all debtors sign it, and then file it in court. Once you file this form, creditors are not allowed to demand that you pay them and they are not allowed to bring you to court. The law also dictates that once you file this form, creditors also cannot cause you to go forward with foreclosure and also cannot repossess your property. In other words, filing puts a temporary stop or stay on all debt collection.

After filing your paperwork with the bankruptcy court, it is important for you wait patiently for the next legal step. The court will send you a document to file within one to two weeks, which is called the Matrix, and it is required that you submit this form to the court, listing all of the names and addresses of your creditors. Then, you need to go through the process of organizing on paper your plan to get your finances in order.

Show the court that you are taking into account your liabilities, income, past financial history, monthly expenses, and other personal information. Once this is completed, and you have finished updating your plan so that all necessary amendments are approved and in order, you can be sure you have followed the chapter 13 bankruptcy rules.

Getting Help

If you are hoping to make a strong case and are concerned about following all the Chapter 13 bankruptcy rules, consider hiring an attorney. Sometimes it seems that this additional cost is simply impossible when you are so far in debt, but it might make the difference you need and will help you get the help you deserve.

Think Bankruptcy Might Be for You?