Chapter 13 Timeline

For the person who has never filed for Chapter 13 bankruptcy before, knowing what happens during the course of a Chapter 13 bankruptcy proceeding can help to take a lot of the stress and uncertainty out of the process. By keeping track of where you are on the timeline, you can prepare yourself for what happens next, and be ready to move through the bankruptcy process swiftly and effectively. Having the right attorney representing your California Bankruptcy case can make a big difference in how prepared you are for each stage of the bankruptcy process – the best attorneys will always be sure that you understand not only the overall process, but what’s expected every step of the way, so that there are no surprises in your case.

The Chapter 13 timeline starts with the credit counseling course that’s required in order to file for bankruptcy. In this course, you’ll learn about managing your finances, and in most instances you will prepare a budget based upon your income and expenses. Pay careful attention to this portion of the course – if you can get professional assistance with your budget now, it will make filing your repayment plan easier. This is because you will be expected to file the budget along with your completion certificate when you file for Chapter 13 bankruptcy. If you have a budget that accurately reflects all of your expenses and income, you will find it much easier to create a workable repayment plan.

In preparation for your Chapter 13 bankruptcy filing, you will want to gather information about any and all debts, liabilities, income and assets that you hold. If you have experienced legal representation, your California Bankruptcy attorney will help you to determine the information you will need for your filing. By being thorough at this stage, you can avoid complications later – especially when it comes to your income and assets. Bankruptcy trustees have been known to move for case dismissal when asset information is left off of the bankruptcy filing, even if that information was omitted inadvertently. When you file your Chapter 13 bankruptcy documentation, you will be expected to begin repayment according to the repayment plan you outlined within 30 days.

Once your bankruptcy has been filed, the bankruptcy trustee will schedule a Meeting of Creditors. At this meeting, your creditors will have the opportunity to speak with you about your current financial situation, and your ability to repay your debts. In most instances, creditors do not attend this meeting, and you will only have to speak with the bankruptcy trustee, who will explain the rest of the bankruptcy process. The bankruptcy judge may choose to adjust some of your liabilities, or eliminate certain unsecured debt, such as a second or third mortgage. Once the details of your case have been decided, your repayment plan will be finalized.

For the next 3 to 5 years, you will have to make the payments according to the terms set out in your repayment plan. Any new substantial debt must be approved by the bankruptcy trustee, and you will be expected to put all of your disposable income towards paying off your creditors. Certain types of debt must be repaid in full, or to the satisfaction of the creditor – other debts, typically non-secured, non priority debt, does not have to be fully repaid. At the end of your repayment period, all remaining eligible debt will be discharged, and you will start over with a clean financial slate and no outstanding debts.

Chapter 13 bankruptcy filings take longer than typical Chapter 7 bankruptcy filings and are by their nature, more complex. In order to ensure that you get the best possible arrangements for your particular situation, a bankruptcy attorney who specializes in California bankruptcy law is your best choice. Our firm has years of experience when it comes to handling California Bankruptcy cases, and we can assist you with your case as well. Speak to one of our reputable California Bankruptcy Attorneys today and schedule a free initial case evaluation. We will give you the information you need to make the right choice for your financial stability in the future.