How A Typical Chapter 13 Bankruptcy Proceeds

STEP

WHEN IT HAPPENS

1.  Initial office consultation.

When you make an appointment.

2.  A packet portfolio with files to put your paperwork in.     

At the office consultation.

3.  A “Should Not Do” list and questionnaire is provided.

At the office consultation.

4.  Inputting all provided information regarding your creditors into the bankruptcy software database.

After you provide all information requested and return packet portfolio.

5.  Calculate the “Means” test.

After data is input.

6.  Review of documents and determine filing options.

After data is input.

7.  A second office consultation.

After preliminary determination of data and appointment is made.

8.  A third office consultation. After determination, any new data is input, draft petition is reviewed.

After draft documents prepared an appointment is scheduled.

9.  File petition for Chapter 13.

Office files directly to bankruptcy court.

10.  Automatic stay takes effect.  It stops your creditors from calling when  they learn of your filing from taking any action to collect from you.

When the bankruptcy petition is filed.

11.  Court appoints trustee to oversee your case.  You receive a Notice of Appointment of Trustee from the court.

Within a few days after the bankruptcy petition is filed.

12.  Court sends you and your creditors a Notice of Chapter 13 case which usually contains:

    * General information on Chapter 13

    *  Summary of your plan

    *  date of the meeting of creditors

    *  date of the confirmation hearing

    *  deadline by which creditors must file their claims.

Within a few days after the bankruptcy petition is filed.

12.  Provide your most recent tax return when requested by the trustee.  Certain information can be blacked out.

At least seven days before the scheduled date of the first meeting of creditors unless a specific date is requested.

13.  Begin making payments under your repayment plan (if your plan is not approved, the trustee will return your money, less administrative costs).

Within 30 days after you file the bankruptcy petition.

14.  Attend the meeting of the creditors.  A creditor may raise objections.  You must bring any documents the trustee requests plus income taxes that you filed in the last four years.  The trustee and any creditors who show up can ask you specific information about information in the paperwork you submitted. 

Within 40 days after you file the bankruptcy petition.

15.  You can file a modified plan.

Anytime prior to the confirmation hearing.  You must send a copy of the plan to all creditors, who are entitled to 20 days notice prior to the hearing.  If you do not give 20 days notice, you have to schedule a new hearing date.

16.  Creditors may file written objections to the plan.

At least 25 days before the confirmation hearing.

17.  Attend the confirmation hearing. The court addresses any objections raised by the trustee or the creditors then approves your repayment plan.

Hearing must be held between 20 and 45 days after the creditor’s meeting.  The court may want to hold it earlier unless there is any objection to the earlier date.

18.  Creditors file their “proofs of claims” regarding how much you owe them.  You may also have to file proofs of claims for creditors.

Within 90 days after the creditor’s meeting (180 days if the creditor is a government agency).  If YOU have to file claims on behalf of creditors, they must be filed within 30 days after the 90 day limit)

19.  If you have reason to object to the claims, you or the trustee file written objections to the creditors’ claims.

File as soon as you can after the creditors’ file their claims.  You must notify the creditors at least 30 days prior to the hearing on your objections.

20.  Trustee sends periodic statements to you indicating who has filed the claims and how much; how much has been paid to each creditor and the balance due each creditor.

Usually twice a year.

21.  Provide the trustee with annual income and expense statements.

If requested by the court, trustee, or creditor, every year while the Chapter 13 plan is in effect.

22.  File a certificate called Form 23 indicating that you completed a personal financial management course.

Prior to making your last payment on your plan.

23.  Court may schedule a brief final court hearing called a discharge hearing.  If there is no hearing, a formal notice of discharge will be mailed to you.

36 to 60 months after you file if you finish your plan payments.  It may be earlier if you seek and obtain a hardship discharge.