Basic Procedures Required to File Chapter 13 Bankruptcy in San Jose

A number of people in USA are losing their homes due to debt issues and not many of them know what exactly has to be done. There are times when the pressure and stress are so much that, the person who have just lost everything, is not able to think in a straight manner. Due to this, wrong decisions are taken and more irreparable damage is done which usually is in legal terms and causes havoc in already tangled lives.

Bankruptcy in the state of San Jose is not an uncommon phenomenon and happens to a lot of people. This is all the more reason to have knowledge about bankruptcy and different types as you or somebody close to you might just make an uninformed decision. Bankruptcy is a legal term which has been termed as a series of federal laws which allow people to give away their debts through kind and start fresh. There are a number of clauses to it which lead to advantages as well as disadvantages. There are different kinds of bankruptcies and in this article, we will know more about how to file a bankruptcy in San Jose.

Seek Every Possible Source

Regardless of what situation you're in, never consider bankruptcy as your bail out option as it is not as simple as it seems to be. There are a number of debts which are not relieved and are still going to stay with you. One of them is child support. Another reason why you should consider all the options which you have is because bankruptcy doesn't mean you will be set off free for nothing. Before filing the bankruptcy, try consulting debt counselling or credit card consolidation.

Know What Chapter 13 Bankruptcy Is

There are two kinds of bankruptcies- Chapter 7 and Chapter 13. Chapter 13 bankruptcy is for people who are earning and need some extra time to pay off their debts. You can only apply for chapter 13 if your debt is less than $269,750 and secured debts are less than $807,750, and maximum three years are given to the debtors to pay back the debt. It can be paid together once or in parts.

File the Petition and Pay the Fees

The first step is to file a petition in the district bankruptcy court of San Jose and consulting an attorney in this process is a good idea as the lawyer knows how things are done and can guide you well. Buy a form and file the petition, and along with it file the liabilities and assets, expenditures and unexpired leases. During this process, you have to pay the court petition filing fee and administrative fee which will ensure that you are not contacted or sued by any of the creditors. One last step which you need to do is file a plan of repayment, which can be done in 15 days of filing the petition. Once this is done the filing of petition is complete.

Meet the Creditors

This is when you have to meet your creditors and give them an opportunity to know your financial condition better. This meeting usually happens after 20 to 50 days of filing the petition and the creditors can ask you questions about your financial repayment plan. It is a wise step to take an attorney with you who can answer questions for you and give appropriate replies.

Confirmation Hearing and Repayment

This is when the bankruptcy court judge comes into play and your payment plan will be checked by the court of law. The court will hear out your plan and make sure it falls under all the chapter 13 bankruptcy clauses. At this time, your creditors will be given an opportunity to object and if this step is over, you need to now start paying your debts. You need to start paying your debts in 30 days of filing the plan, regardless of the fact if it has been approved or not. If it is pending, you can change or modify it to chapter 7 bankruptcies.

These are the prime steps of the procedure of filing a chapter 13 bankruptcy in San Jose and consulting a bankruptcy lawyer is a good idea to make things go smoothly.

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