A Chapter 13 case allows you to protect your property, like your home and vehicles. It immediately stops foreclosure sales, repossessions and other actions by creditors to take your property. It is designed to allow you to take control of your finances by consolidating your debts and even adjusting them as necessary to set up a monthly payment you can afford to make. Typically, a chapter 13 consolidation lasts for three to five years. All of your debts are included in the repayment plan, including taxes and student loans. Some debts, like student loans, may not be paid in full by the end of the Chapter 13 plan.
To get the case started, you need to follow these simple steps:
Meet with an attorney to determine if bankruptcy is the best alternative available in your circumstances.
Take a credit counseling course from an accredited agency. We can direct you to such agencies.
Gather all of your financial information and enter it on our web site.
Meet with an attorney to review all of the bankruptcy paperwork. The bankruptcy petition, statements and schedules are filed at that meeting and a case number is assigned.
After your case is started, you will need to do the following:
Attend a meeting with the chapter 13 trustee. This meeting is scheduled approximately one month after the case is filed. You are required to make your first plan payment at this meeting.
Continue to make the monthly plan payments until the plan is completed. This process typically lasts from 3 to 5 years.
Take a financial management course sometime before you make the final plan payment.
If you make all your plan payments and comply with the requests of the trustee and any orders of the court, you will be awarded a discharge of your debts.