When Congress overhauled the bankruptcy laws in 2005, there was a lot of hubbub over the "means test." The good news is that if you plan to file for Chapter 13 bankruptcy, the means test has no bearing
Before you can receive a discharge in Chapter 7 or Chapter 13 bankruptcy, you must complete a course in personal financial management (also called the predischarge debtor education course). The purpose of the debtor education course is to teach you how to manage money and use credit wisely after bankruptcy.
If you file for Chapter 13 bankruptcy, the court will hold a confirmation hearing. This hearing is central to your Chapter 13 case because it is where the court decides whether to approve (or confirm) your proposed repayment plan. Once your plan is confirmed, your obligations going forward are reset and your creditors must accept your payments in satisfaction of their claims.
If you file for Chapter 13 bankruptcy, your case will most likely last between three and five years, depending on the length of your repayment plan. But there are some instances when your Chapter 13 case will fall outside this standard three to five year period.
The bankruptcy court can dismiss your Chapter 13 case for many reasons. In most cases, you can file a new bankruptcy right away. But sometimes it can be in your best interest to appeal the dismissal order to a higher court for further review.
If you fail to make your Chapter 13 plan payments, eventually your bankruptcy case will be dismissed. You can refile another Chapter 13 petition, but you'll face some limitations on the protection of the automatic stay if you do so within one year of the dismissal.
Both Chapter 11 and Chapter 13 bankruptcy provide a way for people struggling with debt to keep their property by reorganizing their debt. Chapter 11 bankruptcy is generally more popular with businesses, but it can be a good choice for certain individuals, especially those with extremely large amounts of debt. For most individuals, however, Chapter 13 bankruptcy is often cheaper and easier.
Each bankruptcy chapter offers unique benefits that will differ depending on whether you or your company files for bankruptcy. Understanding these dynamics will help you choose the best solution for your small business needs during the coronavirus pandemic.
When you file for Chapter 13 bankruptcy, you must commit to a repayment plan that will pay off some or all of your debts over three to five years. Your monthly payments will depend on your debts and your income. Some debts must be paid in full in Chapter 13, regardless of your income. If you don't earn enough to pay off these debts, the judge won't confirm your Chapter 13 repayment plan.
If you file a lawsuit during your Chapter 13 bankruptcy case, you must disclose this fact to the court and the bankruptcy trustee and must amend your bankruptcy schedules if it's not already listed. Also, the lawsuit might mean that you have to pay more into your Chapter 13 plan. Read on to learn more