How to Declare Chapter 13

The legal process of debt reorganizations, more commonly known as Chapter 13 bankruptcy, allows people to keep assets such as houses, cars and other valuables and make one monthly payment to all creditors via a court-mandated payment plan. Bankruptcy is a federal procedure, but you must file in your state jurisdiction, each of which has its own rules. To file a successful Chapter 13 bankruptcy, you need knowledge of state and federal regulations.

• 1

  Locate a court-approved credit counseling class on the U.S Trustee website or the website for the court of your bankruptcy district. Take a class and receive the completion certificate within 180 days of filing.

• 2

  Request the bankruptcy petition from your lawyer or, if you do not have a lawyer, download the petition from the U.S. Courts website or the court website in your district.

• 3

  Complete the means test to verify you can file Chapter 13. If your income is below your state's median, you are not eligible for Chapter 13 and must file Chapter 7.

• 4

  Fill out the remaining schedules that pertain to your income, assets, expenses and debts. Give honest and accurate information about your assets and income or the court will dismiss your case. Do not leave any debts off the petition because you will not be able to include forgotten debts in the payment plan.

• 5

  File the petition with the court directly if you do not have a lawyer. Otherwise, give the petition to your lawyer who will file it and pay the filing fee of $274 as of October 2010. Your lawyer can pay on your behalf by attorney check, cashier's check, money order or cash. Pay by money order or cash if you do not have a lawyer because you cannot pay bankruptcy filing fees by check without an attorney.

• 6

  Get the date of the 341 meeting from your lawyer or the court clerk. The meeting usually takes place six weeks after you file and requires you to answer questions about your finances from a court-appointed trustee and any creditors who attend.

• 7

  File a repayment plan within 15 days of filing the petition. Consult with your lawyer, the trustee or a legal aid organization to create a plan that lasts three to five years and allows you to pay back as much debt as you can within your means. Give priority to nondischargable debts including tax debt and child or spousal support debt as well as secured debts like auto loans and mortgages. The court will discharge any remaining debt at the end of the three- to five-year period.