What Are The Steps In Filing For Chapter 13 Bankruptcy

For people considering filing bankruptcy under Chapter 13, a prime question is: "What are the steps in filing for chapter 13 bankruptcy?"

Filing personal bankruptcy is very detailed and there are time requirement that must be met. Without going into any of the details and to give a quick overview, the steps for filing for bankruptcy under Chapter 13 are as follows:

1. You file a petition and associated documents with the bankruptcy court serving the district in which you live along with paying your filing fee. With court permission, the filing fee may be paid in four installments.

3. You must file a repayment plan with your petition or within 15 days after your petition is filed. The plan must provide for payments of a set amount of money to the trustee on a regular basis, normally either biweekly or monthly. The trustee will take the money and distribute it to your creditors according to the repayment plan once it is approved by the bankruptcy court.

4. Between 20 and 50 days after you file your Chapter 13 petition, the Chapter 13 trustee will hold a meeting of creditors. During this meeting, the trustee will place you under oath and you must answer questions from the trustee and creditors about your financial affairs and the proposed terms of your plan. If there are problems with the plan, the problems are generally resolved during the meeting or shortly thereafter.

5. Within 30 days after filing your bankruptcy petition, you must start making payments to the Chapter 13 bankruptcy trustee, even if the plan has not yet been approved by the court.

6. To receive distributions from the trustee under the repayment plan, unsecured creditors must file their claims with the court within 90 days after the first date set for the meeting of creditors. A governmental unit, however, has 180 days from the date the case is filed file a proof of claim.

7. Within 45 days after the meeting of creditors, the bankruptcy judge must hold a confirmation hearing and decide whether your repayment plan is feasible and meets the standards for confirmation set forth in the Bankruptcy Code. If the court confirms your plan, the Chapter 13 trustee will distribute the money received under the plan "as soon as is practicable." If the court declines to confirm your plan, the you may file a modified plan. You may also convert your case to a Chapter 7 bankruptcy, if you qualify. If the court declines to confirm your plan or your modified plan and instead dismisses your case, the court may authorize the trustee to keep some money for costs, but the trustee must return all remaining money to you (other than money already disbursed or due to creditors).

8. You make regular payments to the trustee and the trustee disburses money to your creditors. During the repayment plan you may not incur any new debt without consulting the trustee, because additional debt may compromise your ability to complete the plan.

9. Upon completion of all payments under your Chapter 13 repayment plan, there is discharge of your qualifying unsecured debts.

This is general information. If you need specific information or have any questions of any nature whatsoever, talk with a lawyer licensed in your state.

For more general information, see Bankruptcy. For more detailed information see filing bankruptcy.

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