Chapter 13 bankruptcy is a good solution for people who have more debt than they can afford to pay but who can make payments on reduced debt balances. Through a Chapter 13 bankruptcy, you make an agreement to make payments at reduced amounts to your creditors, who agree to consider your account satisfied if you pay off a lower amount than you actually owe. Filing Chapter 13 bankruptcy is a lengthy and complex process that you should never undertake without an experienced bankruptcy lawyer working with you. If you decide to pursue a Chapter 13 bankruptcy, these are the steps you will take.
Initial Paperwork and Hearing
The first step in Chapter 13 bankruptcy is completing the paperwork and filing it with the help of your bankruptcy lawyer. When the paperwork is submitted, you will receive an automatic stay, which stops your creditors from contacting you or pursuing further actions against you. After the court gets the papers, you will be assigned a trustee, who will oversee the entire proceeding and liaise between you and your creditors. A repayment plan will also be submitted. Then, you and your creditors will receive a Notice of Chapter 13 Case document that tells the basic information about your case, when you will meet with creditors, and the deadlines for claims from your creditors.
Payment Arrangements and Meeting of Creditors
After the notice of your case is filed, you will provide tax statements and any other documents that are requested to the trustee. Your creditors may also file objections to the plans in your notice. A meeting of creditors will occur on a specific date, at which your creditors may ask questions about your filings and raise objections to try to get your plan modified. At the point, your plan may be adjusted, and you may need to file a modified plan.
Discharge of Debts
Your trustee will keep you informed of your progress on your payment agreement throughout your case. On a previously agreed upon date, the court will grant a bankruptcy discharge. This usually happens between 36 to 60 months after your initial filing.
Bankruptcy is complicated, but the attorneys at Cutler & Associates, Ltd. can make it easier for you. Talk to an experienced bankruptcy attorney in Schaumburg today by calling (847) 961-4572.