If you want to adjust the amount of your loan by restructuring it, one way to do so is with a Chapter 13 bankruptcy. There are many benefits to selecting this type of legal status to make changes in any loans that you currently owe. It is critical to your success to know certain things about what this bankruptcy is and what is involved in the filing process.
What is Chapter 13 Bankruptcy?
This type of bankruptcy is referred to as the wage earner bankruptcy because you must be employed to qualify for it. When completing the paperwork, it is necessary for you to list the amount of your income and to provide verification for it, as well.
You could use an old W-2 to prove how much you earn or a past pay stub or even your previous year's tax return if you have it on hand.
Forms you must Complete
In order to fully qualify for a Chapter 13 bankruptcy, there are a number of forms that you must fill out beforehand. This will show that you are eligible for this type of assistance and you should be eligible for it.
Listed below are some of the forms you may be asked to complete:
1. You must list the amount of your debt and the creditor it is owed to
2. You should include all of your monthly living expenses which may include rent and food, plus any additional costs
3. You must include the property that you currently own
4. Your employer and the amount of your income will be necessary
All of this information must be detailed and accurate in order for you to qualify for a Chapter 13 bankruptcy.
The Time of the Loan
You may want to restructure your current loan for two common reasons. These may include lowering the amount of your monthly payments and having more time allowed for you to repay the loan.
The court will allow you up to five years to pay back any money that you have borrowed if you qualify for this type of bankruptcy.
Finally, if you want to make significant changes to any of the loans you are currently indebted for, this may be the best type of bankruptcy for you to choose. Be sure to speak to a bankruptcy attorney who can guide you through the legal process and help you get this done with ease.
Have more questions? Contact a company like Wiesner & Frackowiak, LC to learn more.Share