I was recently involved in a car accident. Unfortunately, since it was my first accident, I was scatter-brained and anxious. What I did not realize at the time was that the actions you take immediately after the accident can affect a personal injury case and the outcome of that case. I wanted to find a way to share my experiences and mistakes with other. Since the Internet is so popular, I figured this would be a great way to do so. While you likely aren't planning on being in an accident soon, if you are, hopefully you remember some of the tips I share on this website.
If you want to reorganize your debt, one way for you to accomplish this is by filing for a Chapter 13 bankruptcy. Being able to achieve this status can be the financial assistance you need to avoid stress each month paying your bills. You must be employed to file for this type of bankruptcy. Knowing the steps that are required can be of great benefit to you if you're interested in this legal status.
Step #1: Know your debt
It's important to be aware of the amount of your loan when you're filing for Chapter 13.There are legal limits that are set into place, and these are $360,475 for unsecured debt and $1,081,400 on debt that is secure.
Secured debt is backed by collateral, such as your mortgage payment and unsecured debt is not.
Step #2: Prove your income
When it comes to filing for a Chapter 13 bankruptcy, you must report any type of income that you may have. Below are various types that will qualify as money that you make:
1. A salary that you earn from your employer for doing a specific job.
2. Money that you get for renting your property to others.
3. If you're self-employed, the money that you make at your business.
4. Unemployment income must be reported.
5. In certain instances, it may be necessary to add your spouse's wages.
6. Any spousal or child support that you receive.
You will be required to report any of the above sources of income when you file for a Chapter 13 bankruptcy.
Step #3: Get your property valued
It will be necessary for you to report what your property is worth when filing for this type of bankruptcy. Some of what you own may be exempt, and you will need to consult with the court to find out what this amount may be.
Step #4: Fill out the forms
Be prepared to complete a number of forms if you want to have success filing for a Chapter 13 bankruptcy. These will typically involve how much money you make, the amount of your debt and your monthly cost of living expenses.
Finally, the better prepared you are for filing for this legal status, the greater chance of success that you may have. Be sure to reach out for the assistance of a bankruptcy attorney, like FactorLaw, if you feel this process is too much for you to handle on your own.