Beginning of Case
A chapter 13 bankruptcy case is begun with the filing of a petition for chapter 13 relief with the Bankruptcy Court. As part of the filing, you are required to file schedules setting forth your assets, debtors, budget, and financial information.
Automatic Stay of Creditors
Upon the filing of your chapter 13 petition, the creditors are generally stayed from pursuing most form of collection actions. This provides a debtor the opportunity to formulate a chapter 13 plan to rehabilitate their financial situation.
All of your creditors receive notice of the filing of your bankruptcy case by a notice mailed by the Clerk of the Bankruptcy Court. The Clerk sets a “creditors’ meeting”, which is a meeting with you, your chapter 13 trustee, and any creditors who desire to attend. At this short meeting, you will be asked some questions about your financial situation.
Chapter 13 Plan
You are allowed to propose a chapter 13 plan to provide for your particular financial situation and debts. Chapter 13 plans normally are for 3 or 5 years. In this plan, you set forth your proposals to provide for your creditors. The proposed chapter 13 plan is served on all your creditors for their review.
Your chapter 13 plan is brought before the Bankruptcy Court at the confirmation hearing for confirmation. The confirmation of a chapter 13 plan, binds your creditors to the terms of the chapter 13 plan, After the confirmation of your chapter 13 plan, your main duty is to make your monthly Plan Payments.
After you complete the payments under the chapter 13 plan, you are entitled to the issuance of your chapter 13 discharge.