If you come to find that you have too much debt and no way out, your last option may be to learn more about bankruptcy.
As you do so, you may come to find that you don't qualify for a Chapter 7 filing. This will lead you to learn more about Chapter 13 bankruptcy.
If you're interested in this, here is a checklist of things to do:
- Learn more about Chapter 13 bankruptcy, including how the process works, to ensure that it's right for you
- Add up your debt, as your debt total may be too high
- Understand how your income stacks up against what you'll be asked to pay through your repayment plan
- Determine which property is exempt
- Complete all the necessary Chapter 13 bankruptcy paperwork
- File your forms with the necessary court as to push the process forward
- Meet with the trustee to discuss your plan
- Attend your confirmation hearing, as this is when the judge decides to approve or deny your plan
- Continue to make payments through your repayment plan (this can last as long as five years)
- Once your repayment period is complete, wait for your final bankruptcy discharge to occur
This is a lot to think about as you consider the pros and cons of Chapter 13 bankruptcy. Don't let these steps stop you from moving ahead, as things have a way of coming together once you take the leap.
Leave no stone unturned as you inch closer to Chapter 13 bankruptcy, as the knowledge you collect will give you peace of mind during this difficult time.