What Documents Do You Need to Create a Chapter 13 Repayment Plan?

Even if you’re earning a steady income, you might find yourself sinking deeper into debt because what you take home cannot keep up with what you owe. Often this occurs when someone did not work for a period of time, or when they incurred an unexpected expense due to a medical condition, auto accident or home repair project. You might just need a chance to stop the harassment from creditors so that you can rearrange your financial obligations to suit your current circumstances. 

If this is the case, a Chapter 13 repayment plan could be the answer. This method of debt relief requires the submission to the court of a proposed monthly payment schedule that takes into account your income, existing debt and recurring expenses. For the process to go smoothly, it’s essential to provide your attorney with detailed, accurate documents and information related to the following subjects:

• Income — Determining how much you can pay each month to bring down your debt requires evidence of your earnings. Supporting documentation might include pay stubs from the previous six months, records of Social Security or disability benefits, your last two tax returns and materials demonstrating any income you collected from an outside job or freelance work. 
• Assets — Creditors could allege that they would recover a larger share of what is owed to them through a Chapter 7 liquidation of assets than your submitted repayment plan. This is why you should provide information on your real estate, vehicles, bank accounts, investments and valuable tangible property, such as art, antiques and jewelry. 
• Debts — Your attorney will need a complete list of all your debts to ensure that every creditor is included in the bankruptcy filing. Specific obligations could include mortgages, car loans, credit card debt, payday loans, medical bills, student loan obligations and past due taxes. Make sure to bring all the relevant statements or balances for each debt.
• Household budget — Chapter 13 requires you to set up a repayment plan, which will be based on your income and living expenses. Providing a detailed budget that includes rent/mortgage, utilities, groceries, transportation and any other essential expenses will help your attorney structure a feasible repayment plan.

Being prepared with all relevant documents makes it much more likely that your Chapter 13 bankruptcy will proceed smoothly. If you’re considering filing for this type of relief, Jeff Field & Associates offers exceptional representation from start to finish. We serve clients throughout Georgia from offices in Bogart, Douglasville, Gainesville, Lawrenceville, Marietta and Scottdale. Please call 404-381-1278 or contact us online to make an appointment.