Chapter 13 Bankruptcy: Process and Timeline

A bankruptcy chapter 13 process is complex. If you make a mistake, it can result in your petition being dismissed. You should always use the services of an experienced bankruptcy attorney.

Filing

A Chapter 13 case begins when a debtor files a petition with the bankruptcy court serving the area where the debtor resides. The debtor must file the following documents with the court:

1. List of assets and liabilities;
2. Details of current income and expenditures;
3. Details of unfulfilled unexpired leases and contracts;
4. Financial statement.

Once the debtor files a Chapter 13 petition, an automatic stay comes into operation. This stay prevents creditors from taking further steps to collect the debts or contacting the debtor.

Payment Plan

The debtor should submit a payment plan with the petition. The debtor can also submit the plan within 15 days of filing of the petition. The bankruptcy court can extend this time period. The Chapter 13 plan must, among other things, provide for the debtor to contribute that portion of his or her future income as is necessary to meet the terms of the plan. The debtor must begin making payments under the payment plan within 30 days from date of filing the payment plan with the bankruptcy court. Generally the debtor makes payments directly to the bankruptcy trustee.

Timeline

A creditors meeting will take place about 30 days after the filing of the bankruptcy petition. During this meeting the creditors can object to your payment plan. The creditors must file their proof of claim within 90 days from the date of filing indicating the amount they are owed. If the creditor is a government entity, then it must file its proof of claim within 180 days from the date of filing of the petition. Most plans require all payments to be made within 3 years. In some cases, the court may approve a payment plan that provides for payments to be made within 5 years.

Getting Legal Help

Consult with an experienced bankruptcy attorney. Bankruptcy law is complex. If you do not follow the process or adhere to the timeline, your chapter 13 petition can be dismissed.