Tennessee residents who are struggling with serious debt issues know that financial problems can affect a person’s life every day. Even if they do not spend money that day or have an obligation to meet, their debt is often lingering in the back of their mind no matter what they are doing. Even individuals who have a steady income can suffer from outstanding liabilities that exceed their ability to pay.
If you are facing this type of ordeal, you may be considering Chapter 13 bankruptcy. This type of bankruptcy typically works best for individuals who have a steady income and who meet other qualifications. It could allow you to repay your outstanding liabilities over the course of three to five years.
How can you prepare?
Though following this debt relief method may be in your interests, it is important to keep in mind that bankruptcy takes work. You will need to ensure that you file the proper legal documents and follow all the obligations required of you during this time. Remember, hiding details will not work in your favor, so having all needed documents on hand may help your case move forward more quickly. To begin, gathering the following documents may be necessary to your potential case:
- Tax returns from the last four years
- Mortgage information if you own a home, such as payment statements, loan details, proof of insurance, deed and an appraisal
- Bank account records
- Retirement account information
- Income records, such as paystubs for the previous six months, W-2s and records for any additional income
- Information for your vehicle, including proof of insurance, car loan information, vehicle’s value and vehicle’s registration
- Valid photo identification and Social Security card or other verifying record
- Documentation for other liabilities and expenses, which could include things like child or spousal support
It can take time to gather these documents as you may need to request certified copies of certain records and wait for someone to mail them to you or request records that can otherwise take time to process. Though this list may seem daunting, this information will likely play an essential part in your bankruptcy case. The court will review these records to determine whether you qualify for Chapter 13 and to come up with a feasible repayment plan if you do qualify.