What Information Will Be Used to Calculate Whether You I Qualify for a Chapter 13 Reorganization?

In a previous blog on this site, the topic of how to qualify for a Chapter 13 bankruptcy is discussed. This article identifies what specific information would need to be provided to the court to determine if you qualify. Bankruptcy courts provide a form which asks for the following information so the necessary calculations for that purpose can be performed:

1. Amount of Mortgage Arrears (at time of filing)

2. Arrears on Other Mortgages or Line of Credit Secured by Your Residence

3. Balance on Car Loan (the fair market value [FMV] may also be relevant for purposes of a Chapter 13 cramdown)

4. Balance on loans owed on other personal property (or FMV for cramdown)

5. Arrears on Car Loan (distinguishable from Item 3 in that this relates to overdue payments)

6. Arrears on Other Secured Loans

7. Arrears on Alimony and Child Support

8. Tax Debts

9. Total of other Priority Debts (the previous blog categorized these kinds of debts)

10. Claim amount for death or personal injury arising out of your driving under the influence

11. Other Debts

It is suggested that you retain an attorney to represent you in a Chapter 13 bankruptcy case. By submitting this type of information to legal counsel at the outset, he or she can make at least a preliminary determination as to whether you qualify for filing a Chapter 13 case.  In addition, to this information, legal counsel will need to know all the sources of income, including regular wages, as itemized in the previous post on this blog.

The resulting calculations will enable you to determine not only whether you qualify for a Chapter 13 case but also what length of time will be necessary for the repayment plan to encompass (generally some length of time between 36 and 60 months).

In Albuquerque, Giddens & Gatton Law, P.C. has bankruptcy attorneys who offer expert handling of Chapter 7, Chapter 11, Chapter 12 and Chapter 13 bankruptcy cases in New Mexico. The firm represents many debtors and creditors in Albuquerque, Santa Fe, Taos, Raton, Farmington, Gallup, Grants, Roswell, Los Lunas, Placitas, Belen and the rest of New Mexico. Contact Giddens & Gatton Law, P.C. at (505) 633-6298 to set up an appointment with one of its New Mexico bankruptcy lawyers or visit the firm’s website at giddenslaw.com. Giddens & Gatton Law, P.C. is located at 10400 Academy Road N.E., Suite 350 in Albuquerque, New Mexico.