Is Chapter 13 Worth It?

File for Bankruptcy Is Chapter 13 Worth It?

Is Chapter 13 Worth It?

Bankruptcy is never a simple matter. You have to consider all aspects before making a decision to go through with it, and then add in considering which version is even right for you. The question of is chapter 13 worth it can only be answered by each individual.

DoNotPay can help answer your concerns regarding Chapter 13 bankruptcy so that you can decide if the option is right for you, personally. We'll also help you begin the filing process so you have one less bit of stress off your shoulders.

First, What Exactly Does Chapter 13 Entail?

Chapter 13 pertains to the reorganization and repayment of debt. You must prove that your income is enough to handle both your monthly bills and a repayment plan for handling the money you owe. If you cannot make appropriate monthly payments to your creditors within a 5-year timeframe, you will not be entitled to use this option and may need to look at Chapter 7 instead and have your assets sold.

There are a few other criteria you need to meet for this version, including:

  1. Must not have more than $419,275 (or whatever the current rate is, it varies) in personal loans or credit card debt
  2. Must not have more than $1,257,850 (or whatever the current rate is) in secured debt (mortgages/car payments)
  3. Must be current with tax filings and have filed for the past 4 years

Associated Costs

The costs vary for everyone, but you should expect to at least pay:

Filing fee:$313
Credit course:$50
Attorney fees:Can cost thousands of dollars.

Is Bankruptcy My Best Option?

Bankruptcy is not the best option for everyone. However, if you are currently facing a foreclosure, then filing for bankruptcy can put a stop to the process until the courts decide otherwise. You may be able to get debts paid in a way that allows you to keep your home.

What Happens to My Credit?

Your credit score typically takes a hit when you file for bankruptcy. It will also stay on your report for up to 7 years after you've filed. The average report indicates a 200 point hit on a score when bankruptcy is filed, but this all depends on the exact circumstances. You have the ability to make improvements as you pay down your debt and get these charges off your account.

What Documents Do I Need?

You need various proofs of income and debts in order to begin the filing process. Make sure that you have a debt verification letter that proves all of the creditors you owe money to and how much. Make sure you have tax returns, income statements, W2s, check stubs, bank statements, and the like. You have to get your certificate of completion for the credit course, too.

Some of these documents get filed at the courthouse along with your bankruptcy forms. Others need to be given to your trustee who helps handle your case. This ensures he has all of the identifying information to prove you are who you say you are and your debts and income are exactly as you described.

You can go to the courthouse to file yourself, but be prepared to wait there a while until they have your trustee's name ready and a date set for your meeting.

Let DoNotPay File Your Bankruptcy Forms

When you're trying to decide if chapter 13 is worth it, be sure to take all DoNotPay has to say into consideration. When you're ready to start the filing process, DoNotPay will handle that as well. The few steps it takes is definitely worth it to save yourself time and energy:

  1. Search for File for Bankruptcy on DoNotPay.

     

  2. Put together a list of your debts, expenses, and assets. If you need help accessing information like your credit report, DoNotPay can help you get your report.

     

  3. Let DoNotPay walk you through your bankruptcy options and help you determine whether a Chapter 7, Chapter 12, or Chapter 13 bankruptcy is right for you.

     

  4. DoNotPay will then help find the best credit counseling course near you, which you need to complete before filing your bankruptcy forms.

     

  5. Lastly, DoNotPay will gather all of the forms you need (including available fee waivers) and help you locate your nearest bankruptcy court. All you have to do is complete the required forms, prepare your filing fee, and file the application with your local court.

     

DoNotPay Helps With Other Bankruptcy Questions

Chapter 13 isn't your only option when it comes to filing for bankruptcy nor is whether or not it's worth it is your only question. DoNotPay helps answer any bankruptcy concern that you may have, including:

Can DoNotPay Help With Other Tasks?

Filing for bankruptcy is just one of many tasks DoNotPay helps you tackle. We'll also assist with:

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