Timeline For Chapter 13

One of the most difficult outcomes when confronting financial challenges is bankruptcy. However, bankruptcy was designed to protect and help consumers. Most individuals who file for bankruptcy will file for chapter 7 or chapter 13. Which chapter of the Bankruptcy Code to file under is one of the first choices you must make when declaring bankruptcy. The process and timeline for filing for Chapter 13 can be pretty straightforward, compared to a Chapter 7.

The first step is to contact a Modesto bankruptcy attorney who can help you navigate the bankruptcy process. Hiring an attorney may sound expensive when finances are anything but bountiful, but their expertise can help you make an informed decision and protect the maximum amount of your assets.

The second step is to file a petition with the bankruptcy court. The petition is a document that outlines your income, assets, debts, and property in fine detail. This information is used by the court to determine your eligibility for Chapter 7, or your monthly payment amount in Chapter 13. Although providing an up close look at your finances to the court may seem scary, the more accurate and honest your reporting the better off you are. Attempts to sell property, take out more debt, or reduce income levels in the weeks leading up to a bankruptcy filing may be viewed as suspicious or even fraudulent.

The third step is to attend a meeting of creditors, where the bankruptcy trustee will review your petition and creditors will have an opportunity to ask you questions. The meeting of creditors is a meeting that is required by the bankruptcy court in which the debtor must attend. The meeting is held so that the debtor can answer questions under oath about his or her financial affairs and about the bankruptcy case. Creditors may also attend the meeting, but they rarely do.

The fourth step is to develop a repayment plan, which must be approved by the bankruptcy court. A chapter 13 repayment plan is a court-ordered repayment plan that allows a debtor to repay all or a portion of their debts over a three- to five-year period. The amount you are required to pay depends on your petition details regarding your debt, income and asset distributions.

The fifth step is to make monthly payments to the bankruptcy trustee, who will then distribute the funds to your creditors. You must make timely payments in order to stay in good standing with the court and finalize your bankruptcy case. Once all payments have been made according to the schedule determined by the court, your debts will be discharged and your case successfully closed.