Timeline of a Chapter 13 Bankruptcy Process

Filing a Chapter 13 bankruptcy is an involving and overwhelming process. Whether you have gotten started already or are still considering your options, understanding the sequence of steps to get through your repayment plan can be very helpful. Although there is no set timeline for a Chapter 13 bankruptcy, there is a specified order of steps and an average timeframe during which each step usually takes place. This article will provide an estimated timeline of the Chapter 13 bankruptcy process.

1) Filing of Chapter 13 Bankruptcy Petition (First Step)

Your Chapter 13 bankruptcy case officially begins with the filing of your bankruptcy petition. The petition serves as the initial request to the court for your bankruptcy. Soon after your petition has been filed, the court will issue an automatic stay. The automatic stay legally requires creditors and collectors to discontinue all collection activities, including pending lawsuits, collection calls, and mail. After you file your petition, the court will also assign a trustee to preside over your case.

2) Filing of Repayment Plan and Schedules (approximately 15 days after filing)

Now that the bankruptcy is officially in motion, the next step of the process is to provide the court with your repayment plan and “financial schedules.” The court requires that you provide these documents so that they can assess your eligibility for a Chapter 13 bankruptcy. The financial schedules, which should include information on your assets, income, reasons for filing bankruptcy, liabilities, and expenses, need to be delivered to the court within 15 days of the petition filing. You will also need to file your provisional repayment plan within 15 days.

3) Start of Payments (approximately 30 days after filing)

At this point in the process, you need to start making payments to your trustee. Even though your repayment plan has not been officially confirmed, paying towards your plan now according to your proposal will help prove your commitment and ability to complete the bankruptcy. If you do not make your first payment within 30 days of your petition filing, your case can be cancelled by the bankruptcy court.

4) Meeting of Creditors (approximately 45 days after filing)

The Meeting of Creditors takes place between you, the trustee handling your case, and your creditors. Primarily, this meeting is designed to allow the trustee and creditors to evaluate the repayment plan you have proposed. To have a successful meeting, it is important that you have completed your financial schedules, repayment plan proposal, and provided the trustee with you most recent tax return. At the meeting, creditors and the trustee have the chance to question you under oath – so be prepared, even though they can choose not to ask any questions. During the 30 days following your meeting, the trustee and creditors are required to file their objections to the repayment plan, if any.

5) Confirmation Hearing (approximately 90 days after filing)

At the confirmation hearing, the bankruptcy trustee will provide a final recommendation to the bankruptcy court concerning your Chapter 13 repayment plan. A judge will appear at the confirmation hearing to consider the recommendation of the trustee. In addition, your creditors will also have the opportunity to make objections again to try and prevent the confirmation of your bankruptcy. As long as the judge confirms your bankruptcy, you will be set to proceed with your repayment plan.

6) Proofs of Claim Filed by Creditors (approximately 135 - 225 days after filing)

All creditors (both government and non-government) are required to provide the bankruptcy court with proofs of claim. Proofs of claim are documents confirming the balance of debts currently owed by the debtor. If creditors do not file proofs of claim, they do not receive payment from your repayment plan. For non-government creditors, the deadline is 90 days following the Meeting of Creditors. For government creditors, the deadline is 180 following the Meeting of Creditors.

7) Completion of Repayment Plan (approximately 3 to 5 years after filing)

Over the course of your repayment plan, you will make regular payments to your trustee in order to remain in agreement with the bankruptcy process. Your repayment plan will end in one of two ways: either you will reach the end of the specified plan duration, or you will pay the debts covered by the bankruptcy in full, which arrives first. At the time you complete your repayment plan, you will receive a formal discharge from the bankruptcy court, cancelling the balance of any eligible debts that were not paid in full.