Before you start with a Chapter 13 bankruptcy evaluation, it is important that you understand what Chapter 13 really means. This specific chapter in the US Bankruptcy Code is known as the “Adjustment of Debts of an Individual with Regular Income”.

A payment plan is created and the debt is re-organized in such a way that allows the debtor to afford the monthly installments. This is over a fixed period of time from three to five years. Needless to say, Chapter 13 bankruptcy can be filed only by an individual who has a source of income and can meet regular payments.

These following factors are considered in a Chapter 13 bankruptcy evaluation:

Do you have critical reasons for wanting to file bankruptcy? Do you want to put a stop to multiple garnishments or lawsuits filed against you? Is your house at the risk of repossession, foreclosure, or being evicted? Has a sudden illness or unemployment burdened you with debt? Do you know what the approximate amount of your total debt?

What are the approximate amount of your expenses per month? Figure out the types of monthly bills you have, which can be credit cards, personal loans, student loans, mortgages, medical bills, and student loans. Your properties such as real estate or car and other valuable assets. Also determine the amount and source of your income, which can be employment, pensions, family support.

The above questions are necessary in a Chapter 13 bankruptcy evaluation to assess if you have the means to accomplish the payment plan. Again, you must have a stable and regular source of income, which after necessary expenses leaves you with a sufficient amount of money that can be used to pay your creditors.

If you feel that filing Chapter 13 is right for you, be sure to contact an experienced bankruptcy lawyer for a free evaluation.