Falling behind on your bills can be an emotionally and financially difficult situation to handle. Fortunately, there is a process where you can seek the help of a bankruptcy court in developing repayment plans with your creditors that will stop their collection efforts. Here is how you can file a Chapter 13 bankruptcy petition to give you time to pay back what you owe based on how much money you are currently making.

Hire a Bankruptcy Attorney

The bankruptcy system can be very complicated. You should obtain the help of an attorney who has the experience and knowledge to help you file for Chapter 13 bankruptcy before you start the legal process. An attorney can show you what forms need to be filled out and what information you are required to submit with the forms. This can help the process go much easier than if you tried to figure out the bankruptcy process by yourself.

Petition the Courts

The next step in the process is to petition the court to grant you bankruptcy protection. You are to explain to the court who you are and why you are filing for protection. This information includes your contact information, if you are filing for personal or business bankruptcy protection, how much you owe, the number of creditors you have, and your current financial condition.

Forms

You will have to submit forms that detail every aspect of your financial life. Each form will cover a specific aspect of your finances and financial obligations. The courts will want to know things like how much property you own – including real estate and family heirlooms – and the currently assessed value of that property. Your lawyer will know what forms need to be filed in the bankruptcy court you are petitioning for protection.

Repayment Plan

You will also have to create a repayment plan that is based on your current financial condition. The repayment plan has to be realistic. The courts will not accept a repayment plan if they feel the plan has no reasonable chance of being fulfilled. Your creditors, especially your secured creditors, will have to agree to the plan, and the creditors will also want to see that the plan is workable.

File Petition

You can file your full petition for Chapter 13 bankruptcy protection once you and your attorney have filled out the required paperwork, created your repayment plan, and paid your court filing fee. You should have a response from the courts within a couple months on how to proceed.

A Chapter 13 bankruptcy allows you the opportunity to make good on the debts you owe. Contact a bankruptcy attorney like one from Legal Clinic Of Jerry Paeth as soon as you see your financial condition deteriorating to the point of at least falling a couple of months behind on your financial obligations.  They can help guide you through the court system while protecting your financial interests.