How To Get Help With Open Chapter 13 Bankruptcy to Obtain a Loan
Chapter 13 bankruptcy is an option if you have a steady income, but have fallen behind on rent, mortgage, car payments, credit-card payments and other things.If you file for Chapter 13 you will be able to restructure your debts over the next three to five years, which will allow your creditor to not come after you through eviction, foreclosure, etc.If the need for a new loan is justified and you are in the middle of Chapter 13 proceedings, it is possible.
Step 1: Chapter 13 is a type of bankruptcy.
The "wage earner's plan" is a type of bankruptcy that can be used by people who make a lot of money.The individual is allowed to keep most of his or her property if he or she makes regular payments under the new payment plan.If you file for Chapter 13 you will have to stop your creditor's collection efforts for the duration of the proceedings.Your debts will be paid to a Trustee appointed by the court, who will then pay your other debts.
Step 2: Chapter 13 bankruptcies can be filed when you know when.
There are many reasons why this form of bankruptcy is more desirable than others.If you file for Chapter 13 you can protect your home from foreclosure if you make your payments on time.The rescheduling of your debts under Chapter 13 will allow you to extend the time you have to make payments on other debts, such as credit card debt, giving you more flexibility over meeting your financial obligations.The Chapter 13 rescheduling plan allows you to pay all your debts to a single source and potentially lower your payments through this consolidation process.
Step 3: Are you eligible for Chapter 13?
If your secured debts are less than $1,149,525, you can file for Chapter 13 bankruptcy.You must not have had any type of bankruptcy petition dismissed in the preceding 180 days because you didn't show up or comply with the court's terms.Medical payments, credit card bills, and utility bills are some of the types of debt that an Unsecured Debt is not attached to.Unpaid debts are the majority.If you don't pay your debts on time, your creditor may seize your property.
Step 4: There is a credit-counseling session.
You must receive credit counseling from a government-approved organization within 180 days of filing for Chapter 13 bankruptcy.During this session, you will answer questions about your finances and a counselor will advise you on how to proceed.The United States Trustee Program gives a list of government-approved organizations for consumer credit counseling.You can use this to find a course that is approved by the government.Upon completion of this counseling, you will receive a certification saying that you have completed this requirement and can now file for bankruptcy.
Step 5: Chapter 13 is a type of bankruptcy.
Once you have completed your credit-counseling session, you are ready to file a Chapter 13 bankruptcy petition in the area in which you reside.Look for the appropriate court's website if you conduct an internet search with the terms "Your city" and "your state".The website of the appropriate bankruptcy court will represent your judicial district and have a ".gov" domain.You will file your petition here.The amount of money you owe each person must be included in the petition.Information about your income, how often you get paid, and your salary.You have a list of your property.A list of your monthly living expenses.A copy of your tax return from the previous year.When you file your petition, you will have to pay $310 to the court clerk.You can file your petition online.
Step 6: You can create a repayment plan with your Trustee.
In most cases, your creditor must stop their collection attempts against you after you file your bankruptcy petition.The court appoints a "trustee" to manage your case, who will be your point of contact during the proceedings that follow.You will work with this individual to come up with a plan to repay your debts over time.The plan will change your payments over the next few years.
Step 7: Attend the meeting of the creditor.
In most cases, your creditors must stop their collection attempts against you after you file your bankruptcy petition.An individual known as a "trustee" is appointed by the court to manage your case.Between 21 and 50 days after you file the petition, your Trustee will hold a meeting with you and your creditor to discuss the terms of your repayment plan.You will be required to answer questions regarding your financial affairs when you are placed under oath.Make sure to meet with your Trustee before this meeting to make sure your petition and plan are accurate and complete.This person will be able to give you an idea of what the meeting will look like.
Step 8: The repayment plan allows you to make payments.
Within 45 days after the meeting of the creditor, a judge will hold a hearing to evaluate the repayment plan.If the judge approves the plan, you will be able to make your payments to the Trustee.The rest of your debts will be discharged after you have made all your scheduled payments.If the court doesn't approve the plan, you will have to modify it with your Trustee.
Step 9: Do you need the loan?
Chapter 13 proceedings are designed to relieve those with an unmanageable amount of debt by providing alternative repayment terms so it is not easy to incur new debt.During the pendency of your bankruptcy proceedings, it is possible to incur new debt.It is likely that you will have to ask the court for permission to do so, and you should take some time to decide if you really need the loan.Imagine telling the judge why you need the loan.Borrowing from friends or family is another option if you don't think you can convince him or her.Emergency loans like a car, medical bills, or taxes are more likely to be approved by a judge.
Step 10: Changing your repayment plan is a good idea.
Attempting to modify your repayment plan should be considered if you are trying to obtain a loan in order to make ends meet at home.If you want to fulfill your court-ordered obligations under the plan, you need to schedule a meeting with your Trustee and explain the situation to him or her.
Step 11: Be on the lookout for predatory lenders.
When you apply for a loan, any potential lender will be aware that you have filed for Chapter 13 bankruptcy.They will know that you are behind on your payments and may need additional funds to pay your debts because of this.There are people out there that want to take advantage of you, because you are in a position of financial hardship.Unsolicited offers may be received by you.Don't take a bad loan and watch out for payday loans.You can postdate a check and pay back the loan at a later date with this type of loan.When taking this type of loan, you may be required to pay up to 400% interest in addition to the principle because of the high fees charged by the lender.You should take note of the interest rate and additional fees if you are going to take a loan.If someone is offering you a loan with an interest rate well above the going market rate or charges additional fees that are unreasonable based on the amount you are borrowing, consider finding other sources for short-term financial needs.
Step 12: Look for a lender that will give you a reasonable loan.
If you want to obtain a loan, avoiding predatory lenders won't help you.Depending on the type of loan you are looking for, you have several options.If you need a car, you might be able to work out a financing deal with the vendor.If you need a personal loan, you can ask the bank for help.Discuss your situation with your potential lender if you decide to speak to them about a potential loan.You should tell them that you have filed for bankruptcy in order to eventually repay your loans, not to avoid them entirely.You will have to convince your lender that you are willing to repay the loan.You will be responsible for making payments under your repayment plan if you file for Chapter 13 because it lasts for several years.Provide evidence to your potential lender that you have the funds to continue to make your payments on time.You should show your potential lender proof of your income.This can help assure the lender that you can pay back the loan.If you are offered a loan, make sure that the interest rate, repayment terms, and additional fees are reasonable.You should get a potential loan agreement in writing.
Step 13: You should get a copy of the loan agreement.
The first thing to do if you have to incur new debt during open Chapter 13 proceedings is to get the exact terms of the loan in writing from your potential creditor.The length of the loan should be included in the documentation.The rate of interest.Monthly installments are included in the repayment plan.
Step 14: Discuss the loan with your Trustee.
Schedule some time to discuss the terms of the loan with your Trustee once you have the paperwork.Tell him or her why you need the loan and why it makes sense that you incur new debt during a time when you are supposed to repay previous debt.
Step 15: Ask the court for permission.
You must file a motion with the court if your Trustee approves the new loan.You should send a copy of the motion to your creditor and Trustee.The judge will make a decision at the hearing on whether or not to grant your motion.If the judge grants your motion, you will be given an "order" that will confirm that he has given you permission to take out the new loan.What type of loan, what loan is for, and why you need the loan should be explained in your motion.If you prefer, you can ask your Trustee to file the motion for you.You will have to attend the hearing.
Step 16: Show your lender a copy of the judge's order.
If the court grants your motion to incur new debt, you will need to show your prospective lender this in order for them to give you a loan.Once you have taken the loan, you can use it for your intended purpose.You will have to pay back the loan in addition to following the terms of the repayment plan.