You work long, hard hours making money to support your family. But, although you have a steady job, money is getting harder and harder to come by.
Bankruptcy is not a happy subject to talk about. Losing everything, even after doing what you can to bring money in causes stress and emotional upheaval. Your children’s safety and well-being are your top priority. So, the worry at the forefront of your mind is, “How can I keep a roof over their heads?”
What is Chapter 13 bankruptcy?
As long as you have a regular income, Chapter 13 bankruptcy allows you to pay back the money you owe. During this time, any person or company you owe money to cannot start or continue collection proceedings.
For you, the most critical part of Chapter 13 bankruptcy is the fact you may keep your home. If the foreclosure process has already started, you can stop it by filing under this chapter. But you will still have to make the mortgage payments and catch up on past due payments.
What is the process?
To start the bankruptcy process, you must:
- File a petition with the court. Along with the petition, you must include the following:
- Schedules of assets and liabilities
- Schedule of current income and expenditures
- A list of executory contracts and unexpired leases
- A statement of financial affairs
- Pay a $235 filing fee and $75 administrative fee. If you cannot pay this all at one time, the court may allow you to pay in installments.
- Provide further information:
- A list of all creditors, amounts and the nature of their claim
- Information about your income such as where you work, how much you make and your pay schedule
- A list of all your property
- A detailed list of all living expenses such as food, clothing, utilities, etc.
With filing under Chapter 13 bankruptcy, you may not lose your home. Your children will still have a roof over their heads, and you will have one less thing to worry about.