Understanding Chapter 13 Bankruptcy: a Comprehensive Guide
Chapter 13 is a reorganization type of bankruptcy. Reorganization means that we can change how your creditors are paid – it is as simple as that. Before filing your bankruptcy, our goal is to make you aware of any property that you may lose in the bankruptcy so that you can make an informed decision prior to filing.
Chapter 13 can offer relief for debts such as:
Mortgage: If you are behind on your mortgage loan, we can use Chapter 13 to save your home from foreclosure and bring your mortgage current over as many as 5 years.
Car payments: If you are behind on your car payments, if you have a high-interest rate, or if you owe more than your vehicle is worth, we can lower the interest rate, spread the amount out over 5 years, and in many cases lower the amount of the debt down to the value of the vehicle.
Taxes: If you owe taxes, we may be able to obtain a better payment plan through Chapter 13 than the taxing authorities are offering.
In some instances, you can pay credit cards, medical bills, and signature loans little or nothing.
If you think Chapter 13 bankruptcy may be right for you, contact our knowledgeable attorneys in Tulsa today. We are ready to answer your questions and get you started on the right path. Call (918) 302-2662 now.
How Is Chapter 13 Bankruptcy Different from Chapter 7 Bankruptcy?
If you make too much to qualify for a Chapter 7 bankruptcy, a Chapter 13 bankruptcy may allow you to reduce your monthly debt obligation and get you out of debt in 5 years. Through a Chapter 13 bankruptcy, you pay what you can afford to pay.
Chapter 13 has advantages that are not available under Chapter 7, such as:
Lowering payments on car loans and stopping repossession process
Giving you time to bring your child support and/or alimony payments current
Discharging non-support obligations under a Divorce Decree
Creating Your Chapter 13 Repayment Plan
When you file a Chapter 13 bankruptcy, a trustee is assigned to handle your repayment plan. Most repayment plans are set up to repay all creditors (except for mortgage payments) within 36 to 60 months. You must demonstrate that you have the income to satisfy this agreement and your payments must be made directly to the trustee who then distributes them to your creditors.
The Colpitts Law Firm can work with you to alleviate your financial concerns, giving you a fresh start and re-establishing the credit standing you deserve.
There can be strict time limits for taking legal action in bankruptcy cases, so do not hesitate to call an experienced bankruptcy lawyer in Oklahoma at (918) 302-2662for a consultation.
Chapter 13 Bankruptcy Timeline
The idea of filing a Chapter 13 bankruptcy can be intimidating to many people, especially because it lasts anywhere from 3 to 5 years and entails a monthly payment. If you’re considering filing a Chapter 13 bankruptcy, you might be dreading the uncertainty of what lies ahead in the days, weeks, and months to follow. To help you better understand what this process entails, here is a brief and highly-simplified Chapter 13 bankruptcy timeline.
Chapter 13 Bankruptcy Process
Initial Consultation: Schedule a no obligation consultation with one of our bankruptcy attorneys. We will have you complete a short intake form prior to the meeting. At the consultation, we will discuss your current situation, including your income, property, and debts, and evaluate whether Chapter 13 is the proper path for you. We will also provide a quick estimate of what a Chapter 13 plan payment might be for you. Please keep in mind that estimate is not guaranteed; we will not be able to properly estimate your plan payment until we receive all your paperwork and initially work up your file. Afterward, we will give you a longer questionnaire, which you can complete by hand or online, as well as a list of documents to provide to our office.
Retain Our Office: Once you decide to retain our office for your bankruptcy needs, you will need to sign our Attorney Fee Agreement, as well as pay the initial payment by debit card, check, money order, or cash. You may sign the agreement and make the payment at your initial consultation or at a later time. We will also need you to provide us with a copy of your government issued photo identification and a copy of your Social Security card. After you have retained our office, you may tell any creditors that you have retained The Colpitts Law Firm to file bankruptcy and provide them with our number.
Preparation of Your Case: Before we can file your Chapter 13 case, you will need to complete the mandatory paperwork and provide the necessary documents. Once we receive your paperwork, our team will prepare your petition & schedules. If there are any missing documents or information, we will contact you. Your file will be thoroughly prepared and reviewed prior to scheduling an appointment for you to review and sign it. Your initial Chapter 13 Plan will also be drafted. Additionally, you are required by law to complete a credit counseling course, which usually takes around 90 minutes and can be done either online or by phone. We will provide you with the credit counseling course information and let you know when it is time to complete it.
Review & Sign the Petition & Schedules: Once your petition & schedules and Chapter 13 Plan have been prepared and thoroughly reviewed, we will schedule an appointment for you to come into our office to review & sign the paperwork. You will have the chance to review everything to ensure it is all accurate. You will then meet with one of our attorneys to discuss questions you might have, as well as the next steps. Our attorney will explain your personal Chapter 13 Plan, the due date, and how to make the payments.
Filing: After you have reviewed & signed your paperwork, our team will electronically file your case with the appropriate court. Your petition & schedules, as well as your proposed Chapter 13 Plan will all be filed with the Bankruptcy Court. The Court will then issue a case number, assign a judge and Chapter 13 Trustee to your case, and schedule your Meeting of Creditors. Once your case is officially filed, your automatic stay will immediately go into effect.
Notice of Bankruptcy: A few days after your bankruptcy is filed, the Bankruptcy Court mails the Notice of Bankruptcy to you, our firm, and all of your creditors. This Notice contains various deadlines, as well as the date, time, and location of the Meeting of Creditors.
341(a) Meeting of Creditors: Roughly 30 days after your case is filed, you will attend what is called a Meeting of Creditors that is conducted by the Chapter 13 Trustee. Most of the time, your creditors themselves do not attend. At the meeting, the trustee will put you under oath and ask you a few questions about your bankruptcy paperwork. These meetings usually don’t last more than 15 minutes or so. One of our attorneys will meet with you prior to the meeting to discuss the questions the trustee will ask, as well as answer questions you might have about the meeting or your case in general. One of our attorneys will be present with you for the entirety of the meeting.
Chapter 13 Plan Payment: Your first plan payment will be due no later than the 30th day following the filing of your bankruptcy case. It is important that you make your Chapter 13 Plan payments in a timely manner. We will discuss the various ways for you to make your plan payment.
Proofs of Claims and Objections to the Plan: Your creditors are required to file a Proof of Claim in your case, stating the amount they are owed. You will receive copies of these Proofs of Claims in the mail, and we will monitor them as they are filed. Additionally, creditors may file an Objection to the Chapter 13 Plan. These are to be expected—we will have the chance to amend your Plan to address any objections.
Chapter 13 Plan Confirmation Hearing: Your Chapter 13 Plan must be confirmed by the Bankruptcy Court. Confirmation of the Plan may take several months, as it is usually necessary to file an Amended Plan at least once to address any pending objections from the trustee or your creditors. We will attend all Chapter 13 Plan Confirmation Hearings on your behalf; you do not need to attend.
Confirmation of Chapter 13 Plan: Once the Plan is confirmed, the Bankruptcy Court will issue an order. Your Confirmed Chapter 13 Plan is binding upon you and your creditors. At this time, the trustee will begin disbursing the payments to creditors as called for under the Chapter 13 Plan.
Debtor Education Course: As you near the end of your 3- to 5-year Plan, we will remind you to complete the second course that your are required to complete—the Debtor Education course—if you have not already done so.
Application for Discharge and Notice of Discharge: Once you are nearing the end of your 3- to 5-year Plan, we will prepare an Application for you to receive your discharge. The Court will mail a Notice of Discharge to you and our firm. This means your case is almost complete. After the Discharge is entered, the Court will close your case. After your case is closed, our representation of you is terminated. However, if you have any further legal needs, please feel free to call us.
My husband and I are transplants to Oklahoma from Florida and were so blessed to be referred to Greg and his law office. Not only did he handle our bankruptcy and got it discharged in 6 months, but he also helped us along the way with every step and gave the absolute best, and honest advice in our opinions. We had been working and paying another attorney in Florida for over 2 years and he didn't do half of what this office did in 6 months! If you need a trustworthy and professional law office to handle your case, please give this office a call. You will not be disappointed! They are a 5-star office and staff for sure!
