LEGAL GUIDE
Written by attorney Tobias Licker | Dec 28, 2011

Three Tips That Can Take the Embarrassment Out of Filing for Chapter 13 Bankruptcy

This article provides tips that can take the embarrassment out of filing for Chapter 13 bankruptcy reorganization.

One of the most important parts that must be completed during the Chapter 13 bankruptcy process is the development of a suitable wage earner plan that allows you to pay your debts as efficiently as possible. This is the case because Chapter 13 bankruptcy trustees often deny requests for Chapter 13 bankruptcy relief if they determine your wage earner plan cannot meet your creditor’s requirements.

Many people are afraid to develop this plan because they are embarrassed to describe their financial picture with others. As a result, here are some tips that can help you develop a reasonable Chapter 13 wage earner plan that takes the embarrassment out of creating such a plan.

1) Be sure to provide a highly detailed list of your debts before you submit your wage earner plan.

It’s very important to list all of your debts because it can help your trustee distribute your payments in a timely manner. This is especially true if you have assets that could be repossessed by your creditors. As a result, visit a St. Louis bankruptcy attorney if you are embarrassed about listing your debts. He can help you list your debts on a creditors’ schedule that’s attached to your Chapter 13 bankruptcy petition.

2) Moreover, be sure to provide a detailed list of your personal expenses.

Many Chapter 13 wage earner plans are not approved because debtors fail to list all of their personal expenses. This seems to be true because many debtors are afraid to list their personal expenses.

It turns out that it’s easy to provide a detailed list of your personal expenses in a dignified way. This is the case because most Missouri bankruptcy courts require debtors to list expenses for items such as food, rent, utilities, reoccurring personal tax debts and reoccurring medical procedures.

Providing this data in advance can help you during the Chapter 13 bankruptcy process because Chapter 13 trustees use this information to determine how quickly you can pay your creditors. As a result, don’t be afraid to list these expenses on your Chapter 13 petition.

3) Finally, be sure to list all of your assets on your Chapter 13 petition.

Some debtors are embarrassed to list their assets on a Chapter 13 bankruptcy petition. This seems to be true because they think that a bankruptcy trustee will admonish them for having “not enough" property to file a Chapter 13 petition.

It turns out that the United States Bankruptcy code features provisions that prohibit creditors from discriminating people who appear in bankruptcy court. As a result, you have nothing to fear by listing all of your assets on your Chapter 13 petition.

If you have any questions about the tips that were presented today, please ask a St. Charles bankruptcy attorney or a St. Louis Chapter 13 lawyer today for a free Chapter 13 bankruptcy consolation. They can help you understand how creating a wage earner plan can help you get a fresh start on your finances.

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