What to Expect in a Chapter 13 Bankruptcy?

What to Expect in a Chapter 13 Bankruptcy?

All types of bankruptcy options have basic things in common. However, each has its specific requirements and processes. If you are thinking about filing Chapter 13 bankruptcy, it is reasonable to have many questions and concerns. You might be wondering how the process will work and what you will be required to do.  When you meet with a North Carolina bankruptcy attorney, they can answer your questions and tell you what to expect in the Chapter 13 bankruptcy process. Filing Chapter 13 bankruptcy could be the key to a fresh financial start.

The First Steps in Chapter 13

You will provide your lawyer with all of the necessary information to file your case. This will include information such as:

  • Tax returns
  • Bank statements
  • Bills from creditors
  • Employment information
  • The value and type of your assets

Together, you will create your Chapter 13 payment plan. Your North Carolina bankruptcy lawyer will file your bankruptcy for you once they have completed all the forms. You are required to pay a filing fee and provide documentation that you participated in mandatory credit counseling education from an agency approved by the United States Trustee’s office.

Plan Confirmation Process

You may need to start making your monthly Chapter 13 payments before your plan is approved, as your payments will start the month after you file. Once you file, your creditors and the trustee assigned to your case will review your payment plan. They have the right to object to it, but you will be allowed to modify it. If you can amend your plan so that no one objects, it will likely be accepted by the court at your confirmation hearing. The judge can only approve plans that meet the following criteria:

  • You have enough income to pay your creditors through the plan
  • You created your plan in good faith
  • It aligns with bankruptcy law

Making Payments

You will continue to make these monthly payments over a three- or five-year time span, depending on how you structured the plan and some other factors. For example, if you could have filed Chapter 7 instead of Chapter 13, you will more than likely have a three-year plan. If you are able to complete your payment plan, your bankruptcy will be complete, and your debts will be gone. You will also be required to take another debtor education course at the end of your plan.  If you are not able to complete your plan, you still owe your debts, and you will be subject to continued debt collection actions.

Questions about Chapter 13 Bankruptcy? Contact a Skilled North Carolina Bankruptcy Lawyer

If you are struggling to pay your debts, filing Chapter 13 bankruptcy may be the optimal solution. Our team can help. King Law Firm is a member of the National Association of Consumer Bankruptcy Attorneys and has a track record for helping countless individuals and couples recover financially through a successful Chapter 13 bankruptcy filing. Call (855) 675-1978 or use our convenient online contact form to schedule your free consultation today with an experienced North Carolina bankruptcy lawyer.