The following question and answer series is meant to illustrate the process and the ramifications of filing Chapter 13 bankruptcy. How to Get Started? Debtors need to file a petition with the bankruptcy court serving in the area where they are resident or domiciled. This petition is like a stay order that prevents creditors from trying to contact the debtor to recover dues. After filing the petition, the debtor needs to submit a document called Matrix. Finally, a plan outlining the settlement of debts under chapter 13 is submitted to the court. Who is Eligible to File for Bankruptcy? A self-employed individual or a sole proprietor who has sought credit counseling within 180 days prior to filing bankruptcy is eligible to file under Chapter 13, provided the sum total of unsecured and secured debts do not exceed $336,900 and $1,010,650, respectively. What is the Cost of Filing for Bankruptcy? The petitioner is expected to pay $235 as case filing fees, and $39 as miscellaneous fees. Is Prior Bankruptcy Petition Dismissal Significant? An individual whose bankruptcy petition was dismissed during the preceding 180 days either voluntarily or involuntarily cannot file a new petition. Involuntary dismissal may be the result of the debtor's willful failure to appear before the court or comply with court orders. Voluntary dismissal may be on account of the creditors having sought relief from the bankruptcy court to recover their dues. What are the Necessary Documents Required? The debtor needs to have the following details in hand beforehand: list of assets and liabilities; details of current income and expenditure, details of unexpired lease and other obligations; certificate of counseling; copy of the detailed debt repayment plan developed by the credit counseling agencies; evidence of steady monthly income, a copy of the tax return for the most recent tax year; list of creditors and their dues and details regarding the debtor's income, personal property and monthly living expenses. Is One Required to be Present Before a Judge? Generally, people are assigned a trustee who handles the particulars of their case. A person is expected to appear before a judge only if the creditors contest the case, and the trustee is unable to work out all the issues. How is the Repayment Plan Worked Out? A trustee who is appointed by the court questions the debtor in the presence of creditors about his/her financial affairs in a meeting, referred to as 341. This meeting is held within 3 months of filing for bankruptcy. The debtor is questioned under oath, and hence, needs to be honest about his/her financial situation. He is expected to come up with a repayment plan which has been worked out in the credit counseling sessions. The bankruptcy court has to decide on the feasibility of the plan within 45 days of this meeting. The debtor needs to start making payments to the creditors within 30 days of filing, irrespective of whether the court has approved the repayment plan. Does the Debtor Repay All Debts? The debtor is expected to settle all the priority claims and secured debts within a period of 3 to 5 years. As far as unsecured debts are concerned, creditors expect to recover the maximum of 50% of their unsecured debts or the amount that they would have recovered in case of liquidation under chapter 7. The debtor retains ownership of personal property, provided the dues are settled in accordance with the details worked out in the repayment plan. One should consult a bankruptcy lawyer for any further details and clarifications regarding bankruptcy Chapter 13.