As a single mom, you work tirelessly to support your family. Unfortunately, your job is not bringing in enough money and the bills are piling up. You do not want to have to reach out to friends and family for money.
Bankruptcy is scary and not something you want to think about. The thought of losing everything causes you stress and worry, which impacts your children’s lives. What if you lose the house? You need stability for your children, so filing bankruptcy may in fact be a helpful option to consider.
Chapter 13 bankruptcy
Chapter 13 bankruptcy is like a consolidation loan. You make payments to the trustee, who in turn pays the creditors. These creditors cannot send your delinquent accounts to collections.
By filing under Chapter 13, you may be able to keep your home. Any foreclosure proceedings automatically stop. However, you will still have to pay any past due amounts.
Filing for bankruptcy
The following list shows how the bankruptcy process works:
- First you must file a petition with the court that includes the following:
- Assets and liabilities
- All income you have coming in and bills you are paying
- Current contracts and leases
- A statement of financial affairs
- The court charges a $235 filing fee and a $75 administrative fee. It may also allow you to pay the fees in installments if you cannot cover the lump sum at one time.
- In addition to everything listed above, you must also add:
- The names of creditors and how much you owe them
- Where you work and your income
- Any property you own
- A list of expenses like food, clothing and utilities
By filing a Chapter 13 bankruptcy petition, you should not lose your home as long as you pay the agreed-upon amount. You and your children will still have a place to live and soon your money troubles may no longer weigh you down.