What is Chapter 13 Bankruptcy?
Chapter 13 offers individuals a number of advantages over liquidation under Chapter 7 Bankruptcy. Perhaps most significantly, chapter 13 offers individuals an opportunity to save their homes from foreclosure. By filing under this chapter, individuals can stop foreclosure proceedings and may cure delinquent mortgage payments over time. Nevertheless, they must still make all mortgage payments that come due during the chapter 13 plan on time. Another advantage of chapter 13 bankruptcy is that it allows individuals to reschedule secured debts (other than a mortgage for their primary residence) and extend them over the life of the chapter 13 plan. Doing this may lower the payments. Chapter 13 bankruptcy also has a special provision that protects third parties who are liable with the debtor on “consumer debts.” This provision may protect co-signers. Finally, chapter 13 acts like a consolidation loan under which the individual makes the plan payments to a chapter 13 trustee who then distributes payments to creditors. Individuals will have no direct contact with creditors while under chapter 13 protection.
What Documents do I Need to File a Chapter 13 Bankruptcy in Columbia or Florence, SC?
You will need the following documents to file a Chapter 13 bankruptcy. Please note that this is not an exhaustive list:
- Last 3 years of tax returns with W-2 statements. If you have a business, I need those tax returns as well.
- Last 2 months of pay stubs for each job you have. If you have income from another source such as unemployment or social security, I need proof of this income
- Copy of your County Tax Assessment.
- Copy of any recent appraisals on your home if any.
- Last 3 months of bank statements for each account to include the day of filing.
- 401(k) loan documents.
- Business Questionnaire for people who are self-employed.