According to the United States Courts, “by filing under [Chapter 13 bankruptcy], individuals can stop foreclosure proceedings and may cure delinquent mortgage payments over time.” By law, all actions against you must cease once a Chapter 13 personal bankruptcy has been filed. Creditors cannot start or continue any lawsuits or wage garnishments and must even discontinue telephone calls demanding payments. By receiving three-year or five-year plans to repay their creditors, debtors who file under Chapter 13 can receive the necessary debt relief to get back on their feet.
What you’ll need to do
The first step to file Chapter 13 is to find a cheap Las Vegas bankruptcy attorney who can discuss the advantages and disadvantages of Chapter 13 and help you decide if you will benefit. Your bankruptcy attorney can detail a timeline pertaining to the bankruptcy process and file the appropriate paperwork.
You will need to register for a class in credit counseling. These pre-bankruptcy classes are available in most communities and are required by debtors prior to filing for bankruptcy.
Get a solid understanding of your credit situation. You can order a free copy of your credit report through the AnnualCreditReport website and the services of Equifax, Experian, and Transunion. Each of these services will provide you with a free credit report each year. Present your credit report to your bankruptcy attorney so the debts reflected can be integrated in your Chapter 13 plan.
You will need to include all of your bills and legal notices. Together with your credit report, this information begins to create a complete picture of your debt situation so that you and your attorney can work toward the best bankruptcy plan possible.
At this time, you can begin the filing process with your bankruptcy attorney. He or she can prepare the necessary Chapter 13 paperwork. The filing, if done correctly, will automatically help you avoid foreclosure by creating an “automatic stay.”