How to file Financials for Chapter 13 7
How to file for Chapter 7 13 Bankruptcy
The second step in filing for a Chapter 7 Bankruptcy after gathering the documents is preparing what is similar to a financial budget listing your income, expenses, assets and debts. To qualify for a Chapter 7 you must show under the means test that you can’t repay a minimum payment that would repay even 10% of your debt after reasonable and necessary expenses are deducted from income.
In our office this is a simple process by logging onto our website at home and inputting your financial information. In other offices you may sit down with a paralegal for hours while she types in the information. We believe that by inputting the information at home and letting you file online it is a more accurate and less troublesome method.
Accurate schedules are the goal regardless of how you file. It is very rare that the bankruptcy court wants your property. Normally a debtor owes more than the property is worth and any valuable home or auto has a mortgage or lien for more than what it is worth. The bank normally wants the payments and doesn’t want to foreclose or repossess. However if the payments are not made the property will normally eventually be lost. In a Chapter 13 it is possible to strip away the second mortgage if there is no equity for the second mortgage.
All of this requires documentation of what the family income and expenses are and what the assets and debts are. It the bankruptcy petition is not accurate it will be confusing at best to the judge and trustee and in some cases you may appear dishonest if income or assets are understated or debts and expenses are overstated. The failure to list property may cause a person to actually lose property since in bankruptcy you can only claim exemptions to keep property if the property is listed and belongs to you. Transferring property for less than its real value just prior to filing may cause you to lose property. For this and all the other reasons accurate schedules are important. You can review the process with our How to file for Chapter 7 13 Bankruptcy PowerPoint.
Attorney Nick C. Thompson Louisville Kentucky How to file for Chapter 7 13 Bankruptcy
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