If the bills are piling up and you’re sinking in debt, one of the ways to find debt relief is through Chapter 13 bankruptcy. Going through this process requires an expert bankruptcy attorney to help you through the process to ensure you know what to expect, take the right steps, and complete the requirements.
Our bankruptcy attorneys break down the Chapter 13 bankruptcy process to help you understand what to expect if you choose this form of debt relief.
What Is Chapter 13 Bankruptcy?
Chapter 13 bankruptcy is referred to as the “wage earner’s plan.” When you file for this form of bankruptcy, you will establish a repayment plan with the court that will require you to make installments to your creditors over three to five years.
What to Expect During Chapter 13 Bankruptcy Process
Filing for Chapter 13 bankruptcy requires following a specific process. All elements must be completed correctly and on time for the bankruptcy to go through.
These can include:
Complete Credit Counseling
The first step you need to take is to undergo credit counseling from an approved agency. This must be completed before you file for bankruptcy. The goal of the class is to educate you on bankruptcy and present you with other options for debt relief. You will need to get a certificate or proof that you completed the course. If you still want to proceed with filing for bankruptcy after this class, then you can proceed to the next steps.
File a Petition for Chapter 13 Bankruptcy
The next step is to file for Chapter 13 bankruptcy. You will file a petition with the court and must submit all of your financial information including your income, assets, and debt.
Get an Automatic Stay
After filing the bankruptcy petition, the court will put an automatic stay into effect. This helps you by preventing creditors from harassing you for payments. It also prevents your wages from being garnished, and your property from being repossessed. This will stay in place throughout the bankruptcy process.
Attend Meeting of creditors
Next, the court-appointed trustee will schedule a meeting of creditors. Also called the 341 meeting, this involves you, your attorney, and the bankruptcy trustee. Your creditors can also attend if they choose. The point of the meeting is to discuss your finances and your debt.
Create a Repayment Plan
Working with your attorney, you will create a feasible repayment plan, taking into account your income, expenses, and total debt. This will include how you will repay your creditors over 3 to 5 years.
Attend a Confirmation Hearing
A confirmation hearing will then be held to review and approve the repayment plan. The creditors can attend the hearing and object to the plan. Ultimately, it is up to the court to determine if the plan is approved and that it meets the requirements.
After the repayment plan is approved, you then need to make monthly payments, as outlined in your plan. These payments are made to the bankruptcy trustee who will distribute the money to your creditors.
Complete the Plan
After you complete your repayment plan within the determined 3 to 5-year period, any remaining debts you have might be discharged. This will complete your bankruptcy process. After this is finished, you then will focus on rebuilding your credit and finances.
Let Us Help You
When filing for Chapter 13 bankruptcy, you need an experienced attorney to guide you through the process. Let our lawyers at The Law Offices of Alexzander C.J. Adams, P.C. help. We work for you, the people, and not institutions. Contact us for a free case evaluation, or no-obligation consultation. We are dedicated to helping you overcome this small bump in the road and assisting you to get on with your life.