Documents and Information Required for Starting a Chapter 13

Chapter 13, Title 11 of the United States Code is one of several US bankruptcy codes and governs a specific type of bankruptcy: the Chapter 13. Chapter 13 is basically a debt reorganization and repayment plan that lasts anywhere from 3 to 5 years, depending on the amount of debt owed and the payment schedule agreed upon. The plan enables debtors who have a stable income an opportunity at debtor rehabilitation provided they follow the guidelines of the bankruptcy court-approved plan.

The key difference between a Chapter 7 and Chapter 13 is that the former provides almost immediate relief from indebtedness whereas the latter is a binding repayment plan. Additionally, there are two other choices which are Chapter 11 and Chapter 12. The former is similar to a Chapter 13 except it applies to businesses – be they corporations or sole proprietorships. A Chapter 12 is a family reorganization that applies to farmers.

In order to assist you with your Chapter 13 filing, Clark & Washington will need considerable information in order to prepare your case. Information regarding your assets, budget, debts, and any other applicable financial information is required in order to prepare and file your Chapter 13 case for bankruptcy court. We will need the following information:

• A copy of your prior year’s federal income tax filing and state income tax filing (if there is one)
• A credit counseling certificate (awarded at the completion of your credit counseling course)
• Copies of your monthly billing statements (as well as the names and addresses of each creditor that you currently have a balance with)
• Copies of letters that a foreclosure attorney or your mortgage lender has sent you
• Employment pay stub copies – ideally, the last 7 months of both you and your spouse’s paycheck stubs are what you need, even if he or she is not part of the filing
• Simple monthly budget (household earnings and expenditures)

If you have been contemplating filing a Chapter 13 and have not hired the services of an experienced attorney, we invite you to contact Clark & Washington for further assistance and to answer all of your questions. We have years of experience in Chapter 13 bankruptcy law and can help you get through your financial dilemma so that you can get back on your feet and not have your home and property foreclosed on.