Chapter 13 bankruptcy helps people protect their assets. You can likely keep your home, reduce your debt, and catch up on back payments for mortgages, vehicles, and taxes. You may qualify for Chapter 13 if you have a regular source of income and you don’t exceed certain debt limits of unsecured and secured debts.
How Chapter 13 Bankruptcy Works (The Basics)
- Credit counseling must be completed prior to filing.
- The bankruptcy court collects a $310 filing fee to start your case.
- You must file an official voluntary “Petition for Individuals” form and certain other statements with the bankruptcy court.
- Create and submit your Chapter 13 bankruptcy plan.
- Start making monthly payments to your Chapter 13 trustee in the first month after filing your petition.
- 341 meeting of creditors.
- Complete the personal financial management course and file a certificate with the bankruptcy court.
- Your Chapter 13 trustee and your creditors will review the plan and confirm it or make objections.
- After you’ve completed your Chapter 13 plan payments and filed the required forms, the bankruptcy court should enter a discharge order in your case.
These steps may look simple on the surface, but Chapter 13 bankruptcy can be extremely complex. Even some bankruptcy lawyers don’t fully comprehend it if they don’t specialize in Chapter 13 filings. You need an experienced bankruptcy attorney to help you through a Chapter 7 or Chapter 13 filing.