Understanding the process of a Chapter 13 Bankruptcy can help to relieve the anxiety of your situation. Many times the stress of a current financial hardship can cause an individual to become overwhelmed to the point of not knowing what the next step should be, and the thought of bankruptcy can be daunting due to so many unknowns. At Lehn Law, P.A. we want to help you. We believe that through education comes understanding, through understanding comes action and with action...RESULTS! Use this timeline as an educational tool to give you the knowledge and power to move forward and get the results you want!
Client pays retainer in full, completes credit counseling, and provides all documentation and “homework”. Upon receipt of all of the above, we will prepare your bankruptcy petition.
A Final Review, of approximately 1 hour in length, is scheduled at which time you will review your petition with Joseph Lehn. At this appointment both you and your attorney will sign and date the petition.
Also, at this appointment an estimate of your plan payment will be reached. Further, your plan will indicate how your secured creditors will be addressed. Some creditors may be paid directly, others may be paid through the plan. Your plan payment amount is subject to change pending Trustee review.
Your case will be filed electronically with the Bankruptcy Court. We receive a case number immediately.
Within a Few Days After Filing:
Your case is assigned a Judge and Trustee.
A meeting of creditors is scheduled.
All of the creditors listed on your petition will receive a Notice from the Bankruptcy Court notifying them of your bankruptcy petition. It may take a few weeks for creditor calls and mailing to cease. If after 30 days of filing, you continue to receive calls or mail from a creditor, please advise this office. You will need to provide the name and address of that creditor, so that we may send a letter informing the creditor that they are in violation of the law by continuing to contact you.
If you discover there was a creditor that you failed to list on your petition, please let us know as soon as possible. Additional creditors can be added after filing, if the debt was incurred prior to the filing of the petition. There is a cost of $100 and a $26 filing fee to file an Amendment adding creditor(s).
If you are surrendering real property and/or vehicles in your bankruptcy, the creditor will file a Motion for Relief from Stay requesting the Bankruptcy Court for permission to proceed in taking possession of the property. No response is needed on your part as you are surrendering the property.
The meeting of creditors will take place approximately 30 days after the filing of your bankruptcy petition. At this meeting, which lasts from 5 - 10 minutes, you will meet your Trustee. Your attorney will also be present at this meeting.
Your creditors have 90 days from the day of filing to file a Proof of Claim (government entities have 180 days) which indicates the amount they are owed.
Your first Plan payment is due within 30 days of filing. An Order Establishing will determine your exact payment date.
The Initial Confirmation hearing and subsequent Confirmation hearing(s) will be scheduled, however, your attendance is not required unless you are told otherwise. At the confirmation hearing the attorney, trustee and Judge consider your Chapter 13 Plan for confirmation.
When your Plan is confirmed, the money you have paid in to date and future payments, will be distributed to your creditors.
You will need to complete a second credit counseling course after filing. It is sometimes called a course in Debtor Education or Personal Financial Management. This certificate must be filed before a discharge can be entered in your case.
When you complete making your Chapter 13 Plan Payments, a Discharge will be entered. A bankruptcy discharge releases you, the debtor, from personal liability for certain specified types of debts. In other words, you are no longer legally required to pay any debts that are discharged. The discharge is a permanent order prohibiting your creditors from taking any form of collection action on discharged debts, including legal action and communications with you.
A Final Decree closing the case will also be filed.
