Helping You Understand The Chapter 13 Timeline
Although you may be drowning in debt, you may not qualify to liquidate what you owe through Chapter 7 bankruptcy. Fortunately, you do have other options to consider.
Chapter 13 bankruptcy, the “wage earner’s plan,” allows individuals to restructure their debt and retain property and assets that may not be protected in a Chapter 7 filing. When you work with our team at Gillespie & Murphy, P.A., we can help you identify the most efficient process for protecting the things that matter to you.
Our Christian law firm uses its knowledge to lessen your debt and secure your peace of mind. We want you to know what lies ahead, so we’ve created a timeline of events you should expect if you file for Chapter 13 bankruptcy. Please read the information below and contact us to discuss your situation.
Steps Involved In Chapter 13 Filings
This is a basic overview of the process. Your circumstances may affect the deadlines and documents required in your filing.
Before you file, you will need to gather and review your financial statements and data. This information as well as your petition for bankruptcy, your Chapter 13 plan and other documents will need to be prepared.
You will also need to complete a credit counseling class and provide certification that you completed the course.
After filing your bankruptcy petition with the court, you are assigned a case number, and your automatic stay goes into effect. The automatic stay prohibits creditors from trying to collect their debt.
1st Day of the Month Following Your Filing
You will need to begin making Chapter 13 Plan payments, payable to the Chapter 13 Trustee. The Trustee disburses your payments to the necessary creditors.
Approximately 30 Days After Your Filing
You and your attorney are required to attend a meeting with your creditors (341 Meeting). During the 341 Meeting, your creditors and your assigned trustee review your bankruptcy plan. Few creditors show up to this meeting as your creditors can usually access your bankruptcy filing information online.
Within 20 To 45 Days After The 341 Meeting Of Creditors – Confirmation Hearing
Your attorney and your assigned trustee will participate in a confirmation hearing. You may be required to attend if your creditors oppose the terms of your payment plan. If the trustee or creditors oppose your plan terms, your plan may need to be revised before it can be confirmed. Your plan payment is subject to change during the confirmation process.
60 To 120 Days After Filing
Creditors are afforded an opportunity to file Proofs of Claim in your case to show proof that you owe them a debt. These Proofs of Claim help determine your final plan terms.
After your case is filed, you will be required to take another debt education class and submit proof of its completion to the court. This course is often offered in person but can also be completed online or over the phone.
Discharging debts through Chapter 13 Bankruptcy can take anywhere from three to five years. After you make your last plan payment, the trustee will complete an audit of your case and will confirm that you met your obligations. Once the audit is complete and your obligations have been met, you will receive your discharge document followed by a final report and account, and exit bankruptcy.
Considering Filing For Chapter 13 Bankruptcy? Talk To Us Today.
We are ready and equipped to assist you throughout your bankruptcy. Get your questions answered during a free initial consultation with a lawyer who cares.
Our offices are located throughout eastern North Carolina in New Bern, Wilmington, Greenville and Jacksonville. Contact us today to learn how we can help.