Are you considering filing for Chapter 13 bankruptcy but unsure of what to expect? You're not alone. Many individuals encounter tough financial situations and turn to Chapter 13 bankruptcy to restructure their debts and get a fresh start. In this blog post, we will discuss what you can expect when you file for Chapter 13 bankruptcy and how a bankruptcy attorney can guide you through the process.

Initial Consultation

The first step in filing for Chapter 13 bankruptcy is to schedule an initial consultation with a Chapter 13 bankruptcy attorney. During this consultation, the attorney will assess your financial situation, including your debts, assets, and income. They will discuss your options and determine if Chapter 13 bankruptcy is the right solution for you. The attorney will explain the process in detail, including the requirements for eligibility and what documents you will need to provide.

Creating a Repayment Plan

If you decide to move forward with Chapter 13 bankruptcy, your attorney will work with you to create a repayment plan. This plan will outline how you will repay your creditors over a specified period. The plan will take into account your income, expenses, and assets and will be submitted to the bankruptcy court for approval. Your attorney will negotiate with your creditors to lower the amount you owe and make the repayment plan more manageable.

Meeting of Creditors

After your repayment plan is submitted to the court, you will be required to attend a meeting of creditors. During this meeting, your creditors will ask questions about your finances and the repayment plan. Your attorney will attend the meeting with you and help you prepare for any questions that may arise. This meeting is typically straightforward and is a chance for your creditors to voice any concerns about the repayment plan.

Confirmation Hearing

Once the meeting of creditors is complete, the bankruptcy court will review your repayment plan at a confirmation hearing. During this hearing, the court will determine if your repayment plan is feasible and meets the requirements of Chapter 13 bankruptcy. If the plan is approved, you will begin paying a trustee to distribute the funds to your creditors. 

Discharge of Debt

After you have completed your repayment plan, the court will grant a discharge of debt, which will release you from any remaining obligation to repay your creditors. This discharge is a fresh start and allows you to move forward with your finances without the burden of overwhelming debt. 

Contact a law firm like Veitengruber Law for more information.