How to File for Chapter 13 Bankruptcy

1. Make sure Chapter 13 is the right choice.
2. Analyze your debt.
3. Value your property.
4. Gauge your income.
5. Fill out the bankruptcy forms.
6. Take the required pre-filing course.
7. File your forms and pay a fee.
8. Provide the trustee with documents proving your income and other assets.

How does a Chapter 13 trustee get paid?

The Chapter 13 trustee receives a percentage of your monthly plan payments to administer your case and cover the costs associated with running his or her office. The exact percentage will depend on your specific trustee. But the maximum that a Chapter 13 trustee can collect is 10% of your plan payments.

Can a post petition debt be collected in Chapter 13?

Generally, the creditor on a post-petition debt cannot collect the debt until either the automatic stay is terminated or the creditor receives permission to collect from the bankruptcy court. Include the Debt in Your Chapter 13 Case You can include post-petition debts in a Chapter 13 case under special circumstances.

What happens when a chapter 13 case is filed?

When your Chapter 13 case is filed, an Estate is opened up which consists of all of the Debtor’s property, including wages and income. An increase in income during the administration of the Chapter 13 case can create a situation where there is more disposable income available to pay general unsecured creditors.

How does confirmation of a chapter 13 plan work?

Unfortunately, the Code creates more confusion than clarity. Unlike the confirmation of a chapter 11 plan that vests all property of the estate in the debtor and terminates the estate, confirmation of a chapter 13 plan results in the continuation of the estate. Under §541 (a), the commencement of a case “creates an estate.”

Can my Chapter 13 plan payment be increased aft?

In addition to a change in income after confirmation of the Plan, the debtor may receive new property during the administration of the Chapter 13 case.