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During Chapter 13 bankruptcy, you cant take on new debt like credit cards or loans. This is because you already have a plan to repay your existing debts. Taking on more debt would make it harder to stick to your plan and could even get your case thrown out.
Another way to differentiate Chapter 13 from Chapter 7 is that in a Chapter 13 bankruptcy, you keep everything all your property under a court-approved debt reorganization plan that lasts three to five years. If you stick to the plan and regularly make the payments, you keep control of your possessions.
You may be disqualified if your payment is insufficient to meet the repayment requirements or demonstrate a reliable ability to repay. Our attorneys can assess your financial situation and recommend suitable alternatives.
In addition to obtaining your credit report, you will need the following documents: Tax returns for the past four years. Paystubs or other proof of income for the last six months before filing. Bank account statements from the past 36 months.
Additional Documents Income: Submitting your proof of income is a large part of the documents needed to file Chapter 13. This can be W2 forms, social security, or other documents. Typically, you may have to submit your proof of income up to 60 days prior to filing.
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