How to File Chapter 13 to Avoid Foreclosure

If you are overwhelmed with debt and in danger of losing your home to foreclosure, you may be able to save your house by filing bankruptcy under Chapter 13. This chapter outlines a system by which creditors can reorganize their finances and repay all or a portion of their debts under a court supervised repayment program. You can also pay off unsecured debt without incurring interest (except for student loan debt).

• 1

  Download form B-200 from uscourts.gov. B-200 acts as an official filing document and checklist for documents needed for filing bankruptcy.

• 2

  Gather records. You will need to gather any documents pertaining to assets you own as well as any debts or liabilities you owe, including leases, insurance premiums, mortgage payments, credit card debts, and anything else that generates cash flow in or payments out.

• 3

  Pay filing fees to the closest federal bankruptcy court. You can find a list of bankruptcy courts in the Resources section. You will need to pay a filing fee of $235, plus and administrative fee of $39. You may make payments in installments, if necessary.

• 4

  Prepare a Statement of Monthly Income. You must file this document within 14 days of filing for bankruptcy.

• 5

  Prepare a schedule of assets and liabilities (Official Form 6). You must also file this document within 14 days of filing for bankruptcy?

• 6

  Prepare a Schedule of Current Income and Expenditures. This is essentially a snapshot of your current cash flow situation. You must file this, along with a Statement of Financial Affairs (Official Form 7).

• 7

  Submit all documents to the federal bankruptcy court handling your case. You can also expect to enroll in a court mandated personal financial management course as part of your payment plan.