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Requirements for a Successful Chapter 13 Bankruptcy

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If you have found yourself in a situation where you are overwhelmed by debt, you will certainly be looking for some relief. As you look for information concerning what is Chapter 13 bankruptcy, you will find that it is a long-term period where you are allowed to reorganize and repay your debts in a way that works for you, without the creditors constantly hounding you.


What is Chapter 13 Bankruptcy?

Here are a few things that you might be required to have/show:


  • Assets and liability schedules
  • Current income and expenditure schedule
  • A statement outlining your financial affairs
  • A schedule detailing unexpired leases and contracts
  • A credit counseling certificate, which the debtor will need to file for
  • A copy detailing your repayment plan as per the credit counseling
  • Pay slips of the past 60 days prior to filing
  • A statement indicating your monthly net income
  • Any prospective raise in salary or expenses after the filing process
  • Any tuition accounts or qualified education accounts within the state
  • Transcripts or copies of tax returns as well as an ID

Important things to know about Chapter 13 bankruptcy


  • In your search for information on what is bankruptcy Chapter 13, you will learn about the role of the bankruptcy trustee. This is the person who will be appointed by the court to oversee the reorganization of your debts and who will monitor that you make payments to your creditors at the appointed times. Usually, you will be given three to five years to clear with all your creditors.
  • The trustee, who is appointed by the Department of Justice, is responsible for looking at the creditors’ claims as well as considering all the information that is provided by the debtor. He/she is not supposed to give advice to either the creditors or the debtors.
  • In some special instances, the court may extend the installment period, but this is limited to 180 days after the date that the debtor files for petition. The administrative fees can also be paid in installments if a court feels or has confirmed that the debtor is not in a position to pay the fees in one payment.
  • Unlike Chapter 7 bankruptcy where you are left with a clean slate to start over again, with Chapter 13 you are given the opportunity to catch up on your credit card payments, mortgage payments and car loan payments at your own pace. However, you must commit to making all of the payments on time.
  • There will be a lot of paperwork involved, running up to 40 pages or more! Thus, you need a good bankruptcy attorney to ensure that all the necessary paperwork is completed correctly. Don’t leave anything out because it could cause you problems later on.

Remember, there is no shame in being in debt. Many people find themselves in debt every now and then, especially considering the credit culture of spend first and pay later. The most important thing is what you are doing about your situation and filing for Chapter 13 bankruptcy is a good place to start.


The Chapter 13 Bankruptcy Process


    Requirements for a Successful Chapter 13 Bankruptcy
  • Since we have already answered the question of what is a Chapter 13 bankruptcy and how it is different from Chapter 7, now we have to look at the process. What is involved? Can you do it alone?
  • First, you cannot file for Chapter 13 bankruptcy on your own. You will need the assistance of a bankruptcy attorney, at least for the paperwork.
  • Chapter 13 is actually a repayment plan that will be supervised by the court. If you are granted a Chapter 13 bankruptcy, you have shown your willingness to repay and will be given up to 5 years to repay your debts in an organized manner. You must always pay through the plan.
  • You can make use of the advantages that only Chapter 13 can offer you. For example, you will have the opportunity to settle the secured debts first. This is a big benefit because you do not have to face foreclosure. You can capitalize on catching up with your mortgage payments so that you do not lose your home. Chapter 7 will not allow you to do that.

How Chapter 13 Bankruptcy Works


The minute a debtor files the Chapter 13 bankruptcy petition, it is translated as a cue to automatically stop further debt collection against their property or money. Unlike in the case of Chapter 7, however, this does not grant immunity to certain actions as listed by the court, meaning that debt collection may resume after a short while according to the court’s order.


During the stay process, the creditors have no right to demand payments, proceed with a lawsuit or garnish the wages of the debtor. In this case, the bankruptcy clerk often declares the petitioner as officially bankrupt and furnishes all the creditors listed with a bankruptcy notice statement.


Chapter 13 also provides immunity to co-debtors through an automatic stay provision. In this case, the creditor is required by law to stop demanding any form of payment from the co-debtors or asking for a consumer debt payment. Chapter 13 protects debtors from being thrown out of their property by the mortgage provider.


Craig R. Chlarson - Utah Bankruptcy Attorney

My name is Craig R. Chlarson. Whether you are seeking to eliminate your debt, typically through a chapter 7 filing, or whether you are seeking to reorganize your debt, typically through a chapter 13 filing, or even if you have basic bankruptcy questions, call me today. I can help you.

To schedule an appointment, call (435) 901-3449

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