The final Chapter of bankruptcy is Chapter 13, which is available to individuals. Chapter 13 bankruptcy is an alternative to Chapter 7 bankruptcy. To qualify for Chapter 13 bankruptcy, “the individual's unsecured debts are less than $383,175 and secured debts are less than $1,149,525” ("Chapter 13 - Bankruptcy Basics."). All individuals, including those who are self-employed, are eligible to file for Chapter 13 bankruptcy. Along with a petition for bankruptcy, a $235 case filing fee, and a $75 administrative fee, a debtor must submit:
(1) schedules of assets and liabilities; (2) a schedule of current income and expenditures; (3) a schedule of executory contracts and unexpired leases; and (4) a statement of financial affairs. Fed. R. Bankr. P. 1007(b). The debtor must also …show more content…
("Chapter 13 - Bankruptcy Basics.")
These documents are essential for the court and the court appointed trustee to verify the information on the petition. In addition to the schedules and other supplementary forms, the debtor must also turn over the previous year’s tax return to the trustee. Similar to the other forms of bankruptcy, a petition stays all creditors from taking legal actions to collect outstanding debt. Chapter 13 bankruptcy also contains “a special automatic stay provision that protects co-debtors ("Chapter 13 - Bankruptcy Basics."). This special clause protects individuals who have co-signed leases or mortgages from having legal action taken against them. After 21 to 50 days, the trustee will host a meeting with the creditors and the debtor. Similar to other bankruptcy cases, the creditors are not required to show up, however the debtor is required to attend and is answering the trustee’s questions under oath.
(1) schedules of assets and liabilities; (2) a schedule of current income and expenditures; (3) a schedule of executory contracts and unexpired leases; and (4) a statement of financial affairs. Fed. R. Bankr. P. 1007(b). The debtor must also …show more content…
("Chapter 13 - Bankruptcy Basics.")
These documents are essential for the court and the court appointed trustee to verify the information on the petition. In addition to the schedules and other supplementary forms, the debtor must also turn over the previous year’s tax return to the trustee. Similar to the other forms of bankruptcy, a petition stays all creditors from taking legal actions to collect outstanding debt. Chapter 13 bankruptcy also contains “a special automatic stay provision that protects co-debtors ("Chapter 13 - Bankruptcy Basics."). This special clause protects individuals who have co-signed leases or mortgages from having legal action taken against them. After 21 to 50 days, the trustee will host a meeting with the creditors and the debtor. Similar to other bankruptcy cases, the creditors are not required to show up, however the debtor is required to attend and is answering the trustee’s questions under oath.