Palatine Bankruptcy Lawyer Discusses Chapter 13 Filing Requirements

Palatine bankruptcy lawyer David Siegel states that before a Chapter 13 bankruptcy case can be filed, you must submit to a credit counseling session.  A credit counseling session is a half-hour or one hour on the computer, phone or in person with a credit counselor approved by the Office of the United States Bankruptcy Court.  The credit counseling session is basically a fact-finding situation where you list what you have in terms of assets, liabilities, income and expenses.  You must take the credit counseling session prior to your case being filed.  Additionally, you must submit four years of federal tax returns, the most recent four years just prior to the case being filed.  If you filed an extension, then your extension will serve as the most recent federal tax year. 

Additionally, you must submit two months’ worth of paycheck stubs or other proof of income from any source.  After your case is filed electronically with the clerk, your attorney will upload your credit counseling certificate.  He will forward the four years of tax returns to your Chapter 13 trustee as well as forwarding the two months’ worth of pay check stubs or other pay advices to the Chapter 13 trustee. 

If you fail to do any one of these requirements, the Chapter 13 trustee will likely bring a motion to dismiss your case.  If your case is dismissed, creditors are free to pursue you once again.  So if you hire a competent Chapter 13 bankruptcy attorney, that attorney will be able to advise you on the steps that you need to take prior to filing.  In my office, I will not file a case unless those requirements are met.  Other law firms will file without those requirements and put the burden on the debtor to come up with the paycheck stubs and the tax returns as the case is already filed.  I have found in my experience that it’s best to have all the information prior to filing so that you can proceed smoothly through the Chapter 13 341 meeting and the Chapter 13 confirmation process. 

Find a local bankruptcy attorney in your area that practices Chapter 13 bankruptcy law on a daily basis.  Chapter 13 is complicated and you need an experienced attorney to help you navigate through the bankruptcy system.