Chapter 13 Bankruptcy Help

Counseling

Before filing bankruptcy, you must consult with a credit counseling agency. Choose an approved credit counselor recommended by the U.S. Trustee Program. Credit counselors may be able to offer advice about alternatives to filing bankruptcy. Also, they may be able to help you prepare for filing bankruptcy. In order to file bankruptcy, you will need to complete a credit counseling session and present a completion certificate to your lawyer or to the courts if filing without a lawyer.

One of the most important aspects of a Chapter 13 bankruptcy is the means test. The means test determines whether you qualify to file a Chapter 13 bankruptcy and how much you will be able to pay your creditors. A Chapter 13 repayment plan may pay debtors from 0 to 100 percent of what you actually owe them. To get an idea of what you might expect to pay after filing Chapter 13 bankruptcy, you can complete an online means test calculator at the NOLO website.

Filing for Chapter 13 bankruptcy involves complicated paperwork, usually requiring the assistance of an experienced lawyer. You can, however, file pro se, or without a lawyer, if you are unable to afford or do not want to spend money on hiring a lawyer. The U.S. Courts explain that failure to complete paperwork correctly or in a timely manner may cause your case to be dismissed and prohibit you from filing again in the future. In some cases, you may be able to find a lawyer to file the case without charge, or pro bono. Contact the bar association in your state to inquire about lawyers who might be willing to offer free or discounted services.

Chapter 13 bankruptcy damages your credit score significantly; you can, however, rehabilitate your credit score with perseverance and consistency. To rebuild credit early on, use a secured credit card responsibly. Use the card regularly, but keep the balance low. Over time, gradually apply for additional credit accounts, but do not go overboard or else you may find yourself in debt again.