A debtor should meet Chapter thirteen requirements to file for bankruptcy beneath this chapter. The debtor must also file a certificates of credit counseling and a copy of any debt repayment plan developed by credit score counseling; evidence of cost from employers, if any, acquired 60 days earlier than submitting; a statement of monthly web earnings and any anticipated enhance in earnings or bills after submitting; and a document of any interest the debtor has in federal or state qualified schooling or tuition accounts.
A chapter 13 debtor is entitled to a discharge upon completion of all funds beneath the chapter thirteen plan so long as the debtor: (1) certifies (if relevant) that every one domestic assist obligations that came due prior to creating such certification have been paid; (2) has not received a discharge in a prior case filed inside a certain time frame (two years for prior chapter 13 instances and four years for prior chapter 7, eleven and 12 circumstances); and (three) has completed an accepted course in monetary management (if the U.S. trustee or bankruptcy administrator for the debtor’s district has decided that such programs are available to the debtor).
An individual cannot file beneath chapter thirteen or some other chapter if, in the course of the previous 180 days, a prior chapter petition was dismissed as a result of debtor’s willful failure to appear before the court or adjust to orders of the court or was voluntarily dismissed after creditors sought reduction from the chapter courtroom to recuperate property upon which they hold liens.
Between 21 and 50 days after the debtor files the chapter thirteen petition, the chapter thirteen trustee will maintain a gathering of collectors. Throughout this assembly, the trustee locations the debtor beneath oath, and both the trustee and creditors could ask questions. When an individual files a chapter thirteen petition, an neutral trustee is appointed to administer the case.
A plan should be submitted for court docket approval and must provide for payments of fixed amounts to the trustee frequently, usually biweekly or monthly. As long as the keep is in effect, collectors usually could not initiate or proceed lawsuits, wage garnishments, or even make phone calls demanding payments. The debtor might also lose the house if he or she fails to make the regular mortgage payments that come due after the chapter 13 submitting.