If you have loans and credit card debts to pay and you are being harassed by creditors and need loose them quick, filing for Bankruptcy maybe a right for you. Bankruptcy is a fact of life, and it can happen to anyone. There are many options you can choose to keep the creditors at bay. Look into Chapter 13 of the United States bankruptcy laws and you may just find a solution t hats right for you!

Filing for bankruptcy is a legal process, which allows you to sum up the entire amount you owe into one monthly payment. This payment could last for years, unless you are able to increase payment options and then you'll be required less time to pay off all the debts. Majority of bankruptcy legal proceedings are voluntarily undertaken by the individual in debt. But people can also be forced into bankruptcy to pay back all the creditors on time, regardless of the reason. Legal proceedings for bankruptcy are designed to allow a person to gradually work their way out of a harsh financial situation.

Filing for Bankruptcy Chapter 13, allows the debtor to undergo financial reorganization so to say, though it is supervised closely by the federal court. The goal for Chapter 13 is that it enables debtors to receive a bit of a financial rehabilitation, provided they fulfil a court granted plan for repayments. Chapter 13 works and is closely related to Chapter 7 of the bankruptcy laws. Which allows a debtor immediate relief from many debts.

Chapter 13 is a "Repayment Plan" that is submitted at a bankruptcy court. The basic idea behind it is that, you intent to pay off all your outstanding debts, over a period of number of years, for a minimum of 10% on a dollar. Chapter 13 is designed to give a debtor a fresh financial start, and is it specifically written for honest individuals who have intentions to solemnly pay off all the debts, but are unable to do just that. This could be due to loss of employment, disability, or various personal crises. People who are unable to keep a track of monthly repayments, and need assistance from high interest rates, late fees, penalties, collection notices and calls can benefit from this program.

Process of filing for Chapter 13
The process itself is pretty straight forward:
Gather up all the basic information, including creditors' names, company addresses, amounts of debts owed to specific creditors, source and frequency of current income, and a list of all your property if owned, if not, your monthly living expenses. You'll be required to fill out a bankruptcy application, which is more commonly known as a "petition" or "case file". Submit the application and all supporting documents to a federal court. Then the federal court issues an "Automatic Stay", which will stop all the collections processes and it prohibits all creditors from initiating or continuing lawsuits, written collection notices and telephone calls demanding payments.

After the case has been submitted to a federal court, you'll be notified after a period of 20-40 days to attend a 314 meeting. The idea behind this meeting is to sit face to face with creditors and explain the circumstances of inability to repay the debts. Creditors want to know if you could pay 50% on a dollar, opposed to a minimum of 10%, and if not, the creditor will not waste more time arguing. A court order or approval will be set by the court for repayments. Arrange payments within 30 days of approval.
Completion of Repayments

After completing all the repayments, you'll receive a discharge notice from the federal court. It's a legal notification stating release from all your debts. With the discharge notice in hand, you are free from having personal liability against any debt. Creditors cannot take action after the discharge notice has been received by you. Finally you will begin rebuilding your credit ratings.