• Chapter 13 is a type of bankruptcy used by individuals who have credit problems but still possess a flow of income. In a Chapter 13 bankruptcy, the court does not sell their assets to pay off debts as in Chapter 7 bankruptcy. Instead, the court and the debtor collaborate to organize a new payment plan for all creditors that pays and then cancels out all past debts. By using several tips, you can make this process easier and more productive for both you and your creditors.
  
  

Know Your Cash Flow

• To successfully file for Chapter 13 bankruptcy, begin by knowing both your income and your expenses in detail. Courts typically require this information per month, but you must add income that you may receive less regularly, along with intermittent expenses such as tuition, food expenses, holiday expenses and all other factors. Be prepared to research your own habits and requirements in detail before creating this information.
  
  

Know Your Assets

• Just as the court will require information on your income and expenses, it will also need to know about your assets. Be prepared to list all your assets and possibly their current worth (the court may do the financial step for you, but this may not be common). This step helps the judge the net worth of all your assets and decide on a repayment plan for you.
  
  

Plan Ahead

• Legally, a Chapter 13 repayment plan cannot last longer than 60 months, and most last only about three years. After this, your old debts are permanently forgiven. However, you will need to make the bankruptcy payments steadily for the entire length of the plan. Keep this in mind when you start making long-term financial decisions, factoring in payments as long as new plan lasts.
  
  

Keep Paying Continuing Debts

• Chapter 13 bankruptcies affect only the debts that you have not been able to pay previously. This means that ongoing debts will continue even after you file. If you were not able to make mortgage payments, for instance, these payments will be worked into the new plan. But your mortgage will continue, and the new payments the lender requires each month will not be affected by your bankruptcy.