If you meet with a Chapter 13 bankruptcy attorney and decide to file for this branch, you might wonder about the steps. Meeting with an attorney is the first step, as this helps you determine if you should file. If you decide to, your attorney will explain the remaining steps to you, and here are some of the basics.
Take Your First Credit Counseling Course
To file for bankruptcy, you must take two credit counseling courses. You will take the first one before proceeding any further with your case. You might have to take the second one after going to court. Your lawyer will tell you when to take them and where to take them. You must comply with this request to continue with your case.
Create the Chapter 13 Plan
Next, you will begin working on the Chapter 13 repayment plan with your attorney. Your attorney will gather all the information from you for this plan and will present it to you and the court. The plan will detail how you will repay your debts over time. It will state the payment amount, frequency of the payments, and plan duration. The plan is not set in stone until the court approves it.
File the Documents
For the court to approve your bankruptcy payment plan, they must receive it. Therefore, the next step requires your lawyer to submit and file all the paperwork for your case. It might take a few weeks for the court to read and approve your plan.
Attend a Bankruptcy Hearing
In a Chapter 13 case, you might have to attend multiple bankruptcy hearings. One will take place to verify the plan and ask any questions the court might have. Your lawyer will attend this court date with you.
Make Your Payments and Comply with the Court's Requests
Once the court approves your plan, you must start making your payments on time. You must also comply with the court's requests to notify them of any changes you experience in life. If your income changes, you must let them know. You must also let them know if you acquire new debt.
When you make your last payment, your plan will end. The court will send you a letter to notify you of this event, and the letter might include a discharge of the remaining unsecured debts you owe. If you have questions about Chapter 13 bankruptcy law, talk to a bankruptcy attorney today.