When you file a chapter 13 bankruptcy, you will have a chance to repay creditors while keeping all your property and assets. You will supply all documents pertaining to your income, bank statements, assets, tax returns, titles to vehicles, deeds to property and insurance declarations. You will go through a credit counseling session before filing and a budget management counseling right before the proceedings conclude. You cannot file bankruptcy chapter 13 without these two counseling sessions.

All you debts, unsecured and secured are listed and a trustee will talk with you about the creditors. After a meeting with the trustee, a meeting is scheduled with the creditors. The meeting usually lasts for about twenty minutes. This gives the creditors to ask you any questions while you are under oath. After the chapter 13 bankruptcy information is processed and filed, you are placed on a repayment plan. This payment is paid monthly and must be paid before the end of the month. Included in this payment plan is additional attorney fees and the trustee fees. If you fail to make the payments, the filing is void.

All secured debts are paid before any money is paid to the unsecured creditors. You can have a three-year or a five-year repayment plan. After the time expires for your repayment plan, any creditors that did not receive payment are discharged as well as the paid creditors. They will receive money from half of your tax returns for the period of the repayment plan. That will be all they get if you do not have the money to pay them.

The chapter 13 bankruptcy is an ideal way to restore your credit. As you pay your monthly payments and after creditors are paid, the payments are reported to the credit bureaus. It will show that you made monthly payments to pay off the debt. Any debts that did not get paid off will show a discharge.

For other information on bankruptcy include chapter 7 bankruptcy be sure to visit Bankruptcy Information