What must filers do to complete the Chapter 13 process?

Obtaining a fresh financial start in Mississippi is possible, but it often seems like an extremely complicated task. Those who are considering Chapter 13 bankruptcy as a way to gain new financial footing may be interested in knowing the steps to the process. While each individual's case is unique, there are several general steps that most filers must take in order to declare this type of personal bankruptcy.

First, prospective filers need to decide if Chapter 13 is indeed the right option for them. In some cases, Chapter 7 may be more appropriate, but in many chases Chapter 13 is a suitable choice. Discussing one's finances with a Southaven bankruptcy attorney can help a local resident decide which type of bankruptcy to file. Part of this decision-making process involves determining eligibility for Chapter 13. Individuals will typically need to calculate their debts and compare their income to a potential repayment plan. In addition, filers will also typically have to calculate the total value of their property as well.

After one decides Chapter 13 is right for them and they are eligible, they will have to begin their Chapter 13 paperwork. A bankruptcy law attorney can help a filer navigate all of the paperwork involved in this crucial step. After the forms have been filed, a filer usually must meet with a trustee and attend a confirmation hearing. Then the filer will have to begin making their monthly payments according to the terms of their repayment plan. At the conclusion of one's repayment plan, usually a period of three to five years, the filer will then receive a discharge of remaining eligible debts.

Chapter 13 can help an individual accomplish a host of financial tasks; it can stop creditor harassment, reduce debt and even stop foreclosure. As a result, Chapter 13 is often an appealing option for those who have discussed their situation with a bankruptcy attorney.

Source: FindLaw, "Chapter 13 bankruptcy law checklist," accessed July 10, 2015

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