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- 1). Seek credit counseling within the 180 days prior to filing your bankruptcy petition. Your credit counseling session must be held with a credit counseling agency approved by the U.S. Trustee program. During the counseling session, you should come up with a budget and debt repayment plan. To determine the length of your debt repayment plan, you will compare your family income to the median family income for a family of the same size within your state of residence. If your family income is below the state median, your repayment plan will last three years. If your family income is above the state median, your repayment plan will last five years. Incorporate the lien into your debt repayment plan. Chapter 13 bankruptcy will allow you to spread out the amount you need to pay to have the lien removed over the length of your debt repayment plan.
- 2). File your bankruptcy petition and pay your $274 filing fee (as of August, 2010) with the bankruptcy court serving your district.
- 3). File bankruptcy forms, certificate of credit counseling and proposed debt repayment plan with the bankruptcy court within 15 days of filing your bankruptcy petition.
- 4). Attend the 341 meeting where your bankruptcy trustee will ask you to answer questions concerning your bankruptcy filings under oath.
- 5). Attend the confirmation hearing where the bankruptcy judge should confirm your debt repayment plan.
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