Chapter 13 Bankruptcy Process
The Chapter 13 bankruptcy process generally takes from three to five years. The filing fee for Chapter 13 bankruptcy is $274. In addition to the filing fee, you must complete a credit counseling course prior to filing which costs $49 per filing and a financial management course which costs $16 per person.
The typical process may include:
Initial Consultation With A Bankruptcy Attorney
To begin a bankruptcy filing, it is strongly recommended that you meet with an attorney with specific bankruptcy experience to explain in more detail the rules, guidelines, qualifications and process of Chapter 13 bankruptcy as it applies to your specific situation.
Completion of Necessary Forms
We have developed worksheets for our clients to complete that will enable us to analyze their financial situation and complete the bankruptcy petition and schedules. You should be prepared to list your debts and assets and provide proof of your income for the six months prior to filing your case.
Credit Counseling
The 2005 bankruptcy laws now require that you file a certificate showing you have completed credit counseling with an agency approved by the United States Trustee. We have partnered with Hummingbird Credit Counseling so that you do not have to make payment arrangements or slow down the process by mailing payment to the credit counseling service. To further assist our clients, we have a computer available in our office for our clients to use which enables us to answer any questions which may arise during the process.
Review, Sign and File Petition and Schedules
Once you have completed and returned the worksheets we provide you, we will prepare all of the materials necessary for filing. When the documents are prepared, you will come to our office to review and sign the Petition and Schedules. Once you have signed everything, we will file the petition with the Bankruptcy Court.
Financial Management Course
Once your case is filed, the Financial Management Course Certificate must be filed before your final plan payment is due. We recommend that this course be completed immediately after filing. We have partnered with AAA Personal Finance to provide this course for our clients. This course is taken entirely on the internet and can either be done by the debtor on their own or they may come to our office and use our computer to complete the course.
341 Meeting of Creditors
Shortly after you file bankruptcy, you and all the creditors you list will receive a notice that a “creditor meeting” has been scheduled. This meeting typically occurs three to four weeks after your case is filed. A bankruptcy trustee will be assigned to oversee your case and conduct this meeting and will ask you questions, under oath, about your bankruptcy and the information contained in your schedules. Creditors rarely attend this meeting, but if they do, they may question you as well.
Chapter 13 Repayment Plan
One of the most important forms filed in a Chapter 13 bankruptcy is the repayment plan. This plan details how you will repay the debt you are declaring under Chapter 13. Your first payment will be due to the Chapter 13 Trustee 30 days after you file your case. Payments are made to the bankruptcy trustee, a person appointed by the court to manage your case. The trustee then distributes the money to your creditors. You can request the bankruptcy court to order automatic deductions from your wages and have them sent directly to the trustee’s office.
Discharge
Once you complete your repayment plan, all remaining debts that are eligible for discharge will be wiped out by the court. You will need to demonstrate to the court that your are current on your child support, alimony and have completed your Financial Management Course. Once these requirements are met, you will receive a discharge.
To learn how an experienced bankruptcy lawyer can help you through this process, contact attorney Jason Fauss online or call (314) 291-8899 to arrange a FREE consultation. |
