The Chapter 13 Timeline

Chapter 13 bankruptcy is a legal tool that allows individuals to reorganize their debts and create a repayment plan over a period of time, usually three to five years. If you are considering filing for Chapter 13 bankruptcy, it’s important to understand the Chapter 13 timeline, as it can help you know what to expect throughout the process.

Pre-Filing Requirements: Before you can file for Chapter 13 bankruptcy, you’ll need to complete a credit counseling course from an approved agency, which usually takes about an hour to complete and can be done online, over the phone, or in person. You’ll also need to gather all of your financial documents, such as tax returns, pay stubs, and bank statements, and fill out a variety of forms and schedules that detail your income, expenses, assets, and debts.

Filing the Case: Once you’ve completed the pre-filing requirements, you can work with an attorney to file your Chapter 13 bankruptcy case with the bankruptcy court in your jurisdiction. This includes paying a filing fee of around $310 and submitting all of your forms and schedules. Once your case is filed, an automatic stay goes into effect, which stops most collection activities and lawsuits against you.

Confirmation Hearing: Within 45 days of filing your case, you’ll attend a confirmation hearing with the bankruptcy trustee and any creditors who wish to attend. At the hearing, the trustee will review your proposed repayment plan and make sure it meets all of the requirements of the bankruptcy code. If the trustee approves your plan and none of your creditors object, it will be confirmed by the court and your payments will begin.

Making Payments: After your plan is confirmed, you’ll start making payments to the bankruptcy trustee on a regular basis, usually through payroll deduction from your employer. The trustee will then distribute the payments to your creditors according to the priorities and percentages established in your plan. It’s important to stay current on your payments throughout the plan, as failing to do so could result in dismissal of your case.

Plan Completion and Discharge: Once you’ve completed all of the payments required under your plan, you’ll attend a final hearing with the bankruptcy trustee and receive a discharge of your remaining debts. This means that you are no longer legally obligated to pay those debts and they can no longer be collected from you. However, some debts, such as student loans or taxes, may not be dischargeable and will still need to be paid.

Navigating the Chapter 13 timeline can be complex and overwhelming, but by working with an experienced bankruptcy attorney and staying on top of your deadlines and payments, you can successfully reorganize your debts and achieve financial stability. If you’re struggling with debt, don’t hesitate to explore your options for relief with your Fort Worth bankruptcy lawyer, including Chapter 13 bankruptcy. With the right resources and support, you can find a path forward to a brighter financial future.