Chapter 13 bankruptcy FAQ

Here are Five Chapter 13 bankruptcy FAQ

1. How do I start?
The first thing you do when you file for Chapter 13 bankruptcy is to complete a two page request for the bankruptcy court. In this you ask for relief under chapter 13.This form is also called the “Petition”.

2. What is the 341 meeting?
This is the meeting between you, the court appointed trustee, all your creditors, and your bankruptcy lawyer. The meeting is leaded by the trustee and here you will have a discussions with your creditors and present your payback plan. More details can be found in this article: Chapter 13 bankruptcy payment plan.

3. What debts I have to pay under Chapter 13?
First you still need to pay 100% of the secure debts. The secure debts are mortgages, boats etc. You have to continue paying these creditors as before. Otherwise they can proceed with seizure actions.

Then you have to pay the unsecured debts (like credit card debts) that accrued before filing bankruptcy and that you established to pay in your repayment plan.

In the end there are the post petition debts .These are debts made after you filed for bankruptcy and must be paid in a timely fashion since
they are not protected under your payment plan.

4. Can I pay it off early?
If your earnings will allow for faster payback the bankruptcy trustee will require a large percentage of your funds in order to pay your debts. So the answer is No.

5. Can they foreclose on my house after I have filed bankruptcy?
If you paid your mortgage on time you don’t have to worry, If not the bankruptcy court may allow this.

Feel free to post a comment if you need answers to other Chapter 13 bankruptcy FAQ.