Considering Bankruptcy Try to Stay Out of Chapter 13
Budgeting your money is critical in a Chapter 13 bankruptcy case because you will have to make a payment to the Chapter 13 trustee every month. If you do not make this payment, your case may be dismissed and you will not gain any benefit from your bankruptcy filing. Therefore, it is very important that you know how much money you have coming into your household and how much you have going out so that you can make this payment and meet your other obligations. As part of your bankruptcy filing preparation, you are required to go through financial counseling. You must also provide a lot of information about your income and your expenses to the court. These are good starting points but most people seem to underestimate their expenses or do not take into account non reoccurring expenses that are important and can be budget busters.
Chapter 13 Bankruptcy debtor finishes making his plan payments, he must certify he satisfies two requirements for a discharge of his debts. The federal courts have adopted new bankruptcy form B283 for debtors to make the certification effective December 1, 2008. A debtor must certify he has paid all domestic support obligations. The Bankruptcy forms requires a debtor to list his address in employer’s name and address to give the trustee information if he goes to domestic support obligation. The trustee will use that information to send required notices to domestic support obligation recipients. Before the bankruptcy court to grant a discharge to a Chapter 13 debtor, the court must find that 11 USC 522 does not apply to the debtor.
When deciding what kind of bankruptcy to file, you have to really take a look at what you have and what you will lose if you qualify to file for Chapter 7 or Chapter 13. The majority of people nowadays are filing Chapter 7 bankruptcy.
