Bring in financial information:
- Bank statements
- Tax returns
- Billing statements
- Vehicle titles
- Any other relevant legal paperwork
Guide to Chapter 13
Before filing for Chapter 13 bankruptcy, debtors must complete a credit counseling course from an approved agency within 180 days prior to filing.
Debtors submit a bankruptcy petition, along with schedules listing their assets, liabilities, income, and expenses, to the bankruptcy court in their jurisdiction. They must also pay a filing fee and provide additional documentation, such as recent tax returns and proof of income.
Once the petition is filed, an automatic stay goes into effect, which temporarily halts collection actions, foreclosures, and wage garnishments by creditors.
Approximately 21 to 50 days after filing, the trustee will hold a meeting of creditors, where the debtor answers questions about their financial situation and the proposed repayment plan under oath.
The bankruptcy judge reviews the proposed repayment plan, addresses creditor objections, and confirms, modifies, or dismisses the plan.
Once the plan is confirmed, debtors begin making payments to the trustee, who then distributes the funds to creditors according to the terms of the plan.
Upon successful completion of the repayment plan, the debtor receives a discharge, which eliminates any remaining dischargeable debts not paid through the plan. The case is then closed.