Reduce your debts, save your property -- and start over!

Are you behind on your mortgage, taxes or other bills? Are creditors threatening foreclosure or repossession? Consider Chapter 13 bankruptcy, which can provide you an affordable repayment plan -- and let you keep your house, car and other property.

You can even avoid attorney fees and do it yourself -- let Chapter 13 Bankruptcy show the way. Find out how to:

determine if you qualify for Chapter 13

estimate monthly payments

devise an acceptable repayment plan

complete and file forms

stop a house foreclosure

make up missed mortgage payments

pay off other debts

represent yourself before a bankruptcy judge or trustee

The 8th edition is completely rewritten to reflect the recent (and massive) changes to federal bankruptcy law, as well as the latest bankruptcy exemption laws of your state. It also includes the most current legal documents and instructions on filling them out.

Whether you work with a lawyer or file on your own, you'll find everything you need to take charge of your debts in Chapter 13 Bankruptcy.

Please note: This book does not cover business bankruptcies, farm reorganizations or individual repayment plans (Chapter 13). For Chapter 7 bankruptcy, see Nolo's How to File for Chapter 7 Bankruptcy.

Chances are good that you've picked up this book because your debts have become overwhelming. Maybe you are facing foreclosure on your home, repossession of your car, or constant letters and phone calls from debt collectors. Or perhaps, you've realized that your debts have grown far beyond your ability to repay them, and you're wondering if there's anything you can do to get back in control of your finances.

Chapter 13 bankruptcy could be the best way to resolve your debt problems. When you file for Chapter 13, you agree to repay all or a portion of your debts over time, under the supervision of the bankruptcy court. Chapter 13 allows you to keep your property while using your income to repay some or all of your debts. In contrast, Chapter 7 bankruptcy allows you to immediately wipe out many debts, but in exchange, you must give up any property you own that isn't protected by state or federal exemption laws. (You'll find more information on Chapter 7, including how to decide whether Chapter 7 or Chapter 13 bankruptcy is the better remedy for your debt problems, in "Is Chapter 13 Right For You?" below.)

This book explains every step in the Chapter 13 process, including who can use Chapter 13, how to file the necessary papers, and how to come up with a workable repayment plan. To help you get started, this Chapter provides an overview of Chapter 13 bankruptcy -- how it works and what it will do for you. It also explains other types of bankruptcy relief and options for dealing with your debts outside of bankruptcy.

A. An Overview of Chapter 13 Bankruptcy

Chapter 13 can be a good solution for people who need time to pay off certain debts and who have enough income to meet the Chapter 13 requirements. In Chapter 13, you get to keep all of your property, regardless of its value. However, you will have to pay your unsecured debtors (those to whom you owe credit card debts, medical debts, and most court judgments, for example) the value of the property you would lose if you filed for Chapter 7 bankruptcy.

Here is a brief overview of the Chapter 13 bankruptcy process, from start to finish.

Costs
Everyone who files for Chapter 13 bankruptcy has to pay the filing fee of $274, due either when you file your initial bankruptcy paperwork or in four equal installments (with the court's permission). You'll also have to pay a fee -- typically about $100 total -- to the credit counseling agency where you receive your mandatory prefiling credit counseling and postfiling budget counseling. If you decide to hire a lawyer to help you with your case, you can expect to pay an additional $2,500 or more. You won't have to come up with the entire lawyer's fee all at once, but you will probably have to make a sizable initial payment (maybe $750-$1,000) and pay the rest off over the course of your plan.

If you decide to handle your own case (as many do), you most likely will need to buy some information. This will typically consist of one or more of the following:

one or more self-help law books on Chapter 13 bankruptcy, including this one (roughly $30-$50 a pop)

telephonic legal advice from a lawyer (roughly $100-$200 an hour), and

clerical assistance (help completing your forms) from a bankruptcy petition preparer (roughly $150-$250).

Filing Your Papers

To begin a Chapter 13 bankruptcy, you fill out a packet of forms in which you disclose your property, debts, and economic transactions during the several years before you file. If you are familiar with Chapter 7 bankruptcy, the official forms for Chapter 13 are pretty much the same.

 

Reduce your debts, save your property -- and start over!

Consider Chapter 13 bankruptcy, which can provide you an affordable repayment plan -- and let you keep your house, car and other property.

Part I

1. How Chapter 13 Works
An Overview of Chapter 13 Bankruptcy
Which Debts Are Discharged in Chapter 13 Bankruptcy
Is Chapter 13 Right for You?
Alternatives to Bankruptcy

2. The Automatic Stay
How Long the Stay Lasts
How the Stay Affects Common Collection Actions
How the Stay Affects Actions Against Codebtors
When the Stay Doesn't Apply
Evictions

3. Are You Eligible to Use Chapter 13?
Prior Bankruptcy Discharges May Postpone Your Chapter 13 Discharge
Business Entities Can't File for Chapter 13 Bankruptcy
Your Debts Must Not Be Too High
You Must Be Current on Your Income Tax Filings
You Must Keep Making Your Child Support and Alimony Payments
You Must File Annual Income and Expense Reports
Your Proposed Repayment Plan Must Pay All Required Debts
Your Proposed Payments Must Equal the Value of Your Nonexempt Assets
You Must Participate in an Approved Personal Financial Management Course

4. Do You Have to Use Chapter 13?
Can You Pass the Means Test?
Forced Conversion to Chapter 13

5. Can You Propose a Plan the Judge Will Approve?
If Your Current Monthly Income Is Less Than Your State's Median Income
If Your Current Monthly Income Is More Than Your State's Median Income
Understanding Property Exemptions

6. Making the Decision

Part II

7. Complete Your Bankruptcy Forms
Get Some Information From the Court
Required Forms
For Married Filers
Form 1 -- Voluntary Petition
Form 6 -- Schedules
Form 7 -- Statement of Financial Affairs
Form 21 -- Statement of Social Security Number
Form B22C -- Statement of Current Monthly Income and Means-Test Calculation
Form B201 -- Notice to Individual Consumer Debtor Under § 342(b) of the Bankruptcy Code
Mailing Matrix
Income Deduction Order

8. Drafting Your Plan
Chapter 13 Plan Formats
What Your Plan Must Pay -- And to Whom
Repayment of Unsecured Debts: Allowed Claims
A Model Plan Format
Sample Plan

9. Filing Your Bankruptcy Papers
Gather the Necessary Documents
Get Filing Information From the Court
How to File Your Papers
After You File

10. Handling Routine Matters After You File
The Automatic Stay
Dealing With the Trustee
Make Your First Payment
Keep Your Business Going
The Meeting of Creditors
Modifying Your Plan Before the Confirmation Hearing
The Confirmation Hearing
Modifying Your Plan After the Confirmation Hearing
Amending Your Bankruptcy Forms
Filing a Change of Address
Filing Tax Returns
Filing Annual Income and Expense Statements
Personal Financial Management Counseling

Part III

11. Handling Legal Issues
Filing Motions
Dealing With Creditors' Motions
If an Unsecured Creditor Objects to Your Plan
Handling Creditors' Claims
Asking the Court to Eliminate Liens

12. Carrying Out Your Plan

13. If You Cannot Complete Your Plan

14. Life After Bankruptcy

Attempts to Revoke Your Discharge

15. Help Beyond the Book Glossary

Appendixes

1. State and Federal Exemption Charts

2. Tear-Out Forms

3. Charts

Index

"In Nolo’s usual thorough fashion, here is a guide to an alternative to the typical Chapter 7 Bankruptcy."

 

"An excellent book that can guide you through the [Chapter 13] process."

 

"This is the best book going if you choose to file alone or if you want background on the Chapter 13 process." Attorney Gary Klein, co-author of Consumer Bankruptcy Law and Practice "An excellent resource..."

 

Robin Leonard is a former attorney who gave up the law to become a rabbi. She is the author of many Nolo books including Money Troubles: Legal Strategies to Cope with Your Debts and Credit Repair. She aslo helped write How to File for Chapter 7 Bankruptcy and A Legal Guide for Lesbian and Gay Couples.

 

Chapter 13 Bankruptcy by Robin Leonard
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