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 don’t complete the debtor education requirement, the court won’t issue a discharge in your bankruptcy. Learn more about the debtor education course requirement in 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 don’t make your Chapter 13 plan payments, the bankruptcy court will dismiss your Chapter 13 case. You can refile a Chapter 13 petition but expect to overcome new hurdles. For instance, you could lose the automatic stay protection that stops creditor collections. You might also have to pay a bankruptcy lawyer to complete a new Chapter 13 petition, pay another filing fee, retake the credit counseling course, and explain to the bankruptcy trustee why you’ll be more successful the second time.
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.
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
In Chapter 13 bankruptcy, you commit paying job earnings into a three- or five-year repayment plan. Chapter 13 filers who lose their job have a few bankruptcy options. Depending on your creditors, property, and the amount paid into the plan, the bankruptcy court might reduce your Chapter 13 payment or end your Chapter 13 with a hardship discharge. You could also explore converting to Chapter 7 bankruptcy or dismissing your Chapter 13 bankruptcy.