Tim Wilson asked:




Prior to being able to file you must meet with a court approved credit counselor or counseling agency. You must complete a couse to better able you to manage your finances including a budget making and keeping course. This is truely helpful because a court usually wants you to propose a budget on how you are going to be able to make your expenses and make payments to your creditors if an agreement is reached.. You must also be a resident of the state you file in for a minimum of 60 days prior to the filing date.

The maximum debt allowed for filing Chapter 13 is $922,975 and unsecured debt must be less than $307,675. Certain debt cannot be included in Chapter 13 Bankruptcy including child support, alimony, educational loans, criminal fines and restitution ordered by the courts,

In this payment plan your creditor and you agree under a legal document to pay a monthly payment schedule and in return the creditors will reduce you payment and total debt owed. The court usually appoints some a trustee to recieve your payments and divide them between your creditors. As long as your payments are on time you are protected from creditors making any attempt at collection against you.
While under Chapter 13 protection, you cannot incur additional (new) debt greater than $250.00 unless you obtain court approval. This could affect you if you need a student loans or a car lease.

After you file you Bankruptcy petition, the court will usually issue an order prohibiting from collecting any portion of their debt from you, seizing property such as your car or commencing any continuing legal against you.

The whole idea behind Chapter 13 is that with the proper management of your finances you could avoid the situation. Now that the situation is being managed and supervized, you should have no further problem as long as you adhere to the plan.

Your first payment must occur within 30 days from the date your case is filed.If it is not the judge can and will dismiss your case. Approximately 6 weeks after your case is filed, their will be a Meeting with your creditors chaired by the trustee pf your case.

http://chapter13bankruptcynow68.wetpaint.com/

Beth Bailey asked:




Bankruptcy has many reputations, some people think that bankruptcy will take care of all their debts and life will be good. Some people file as often as they can, they have made it a way of life. Some people should file and don’t because of what other people will think.

Filing for Bankruptcy does not get rid of all debts. Some of those debts include but are not limited to: Alimony, Child Support, Back Taxes, Student Loans, and Fraudulent debts, and recent large purchases of more that $550 for luxury item purchased within 90 days of filing.
There are two different kinds of bankruptcy a consumer can file for Chapter 13 and Chapter 7. Chapter 7 is total liquidation it is the quickest. Federal bankruptcy laws provide a “means test” to determine eligibility. Also beginning October 17, 2005, you must obtain approved credit counseling before you can file bankruptcy. Another new federal bankruptcy requirement is that you must file any overdue tax returns within weeks of filing a Chapter 7 bankruptcy. Under Chapter 7 bankruptcy there are certain items that can be kept but have limits. There are State exemptions and Federal exemptions and rules that go with them. Another thing to consider is Chapter 7 will not fix is your credit score. If you are behind on your bills your credit may already be bad and bankruptcy cannot fix it. If someone has co-signed a loan with you and you file for bankruptcy, the co-signer may have to pay your debt.

Chapter 13 is a reorganization of debt. While many think that they will have to pay the entire amount of outstanding debt, under Chapter 13, individuals literally pay pennies on the dollar and work through a repayment plan that helps them achieve freedom from their debt in a period of between three and five years. There are many steps to filing Chapter 13. Many assets can be kept and protected under Chapter 13. Like Chapter 7 there are also qualifications that need to be met before filing Chapter 13.

There are alternatives to filing bankruptcy. Bankruptcy should be the last resort. There are many attorneys that specialize in this area. Each state has its own rules along with many federal rules and regulations. An attorney can help decide whether or not someone should or can file for bankruptcy, which kind of bankruptcy, and whether or not they are eligible.

http://rexkaufman.vox.com/library/post/the-rules-of-chapter-13-bankruptcy.html