Chapter 13 Timeline - Fresno Bankruptcy
Understanding how bankruptcy works and the timeline that a typical Fresno County Chapter 13 bankruptcy follows can help you to feel less stressful about your situation, and more in control of your financial choices. Chapter 13 bankruptcy is more complex than a Chapter 7 bankruptcy, both because of the repayment plan that must be developed, and because of the multiple financial arrangements that often take place as your obligations are evaluated, and in some cases, renegotiated and adjusted by the bankruptcy judge. Being informed of the Chapter 13 bankruptcy procedures and timeline will allow you to adjust your expectations, based upon what happens at each phase of the case. And with reliable, experienced legal representation, your Fresno County Chapter 13 bankruptcy can give you both security and peace of mind as you regain your financial freedom and prepare to make a fresh start.
Before you file for your Fresno County Chapter 13 bankruptcy, you must attend an approved credit counseling course, and obtain a certificate of completion. During your course, you will likely be taught how to make a viable budget. This is important, because you will also need to file a budget and repayment plan as part of your Chapter 13 bankruptcy case. So by working with the budget and repayment plan developed by the credit counseling/debt management course, you will be able to come up with a viable repayment plan that takes all of your expenses into account properly. When the court evaluates your repayment plan, they will pay attention to three factors:
1. Your repayment plan allows you to pay off priority debts within 3-5 years. Examples of priority debt include back taxes, any past-due student loan payments, and the arrears on a mortgage.
2. Your repayment plan must use all of your disposable income after expenses are accounted for in order to repay your debts. You cannot have anything 'left over" that does not go towards repaying your debts.
3. Your repayment plan pays out at least as much as creditors would receive if you filed for Chapter 7 bankruptcy. This means that while you may not have to repay creditors in full, you must pay them at least as much as they'd receive in a Chapter 7 liquidation case.
Keep in mind that you must begin to make payments according to your repayment plan within 30 days of submitting your bankruptcy to the courts. Even if your case is ongoing, you are expected to make payments to the bankruptcy trustee for the duration. You will continue to make payments until your 3-5 year repayment period is completed, so you want to make sure that you file a budget and a repayment plan that will work with your current situation.
After your repayment plan is submitted, the bankruptcy trustee assigned to your case will call for a Meeting of Creditors. During this meeting, your creditors have the opportunity to ask you about your current and past financial situation, and to obtain information from you about your ability to repay. While all creditors have the right to attend this meeting, most creditors do not, and the meeting itself is usually fairly swift. If you have legal representation, your attorney should be present during the course of the meeting, and your bankruptcy trustee will confirm that you have been fully informed of your legal rights when it comes to filing for bankruptcy in Fresno County.
Filing for Chapter 13 bankruptcy can be a complicated process, depending upon the types of financial concerns you may have. Your best option in order to make certain that your case goes smoothly is to speak with a reputable, experienced Fresno County Bankruptcy Attorney. Our firm has helped clients resolve their financial issues for years, and we fully understand bankruptcy law and how Chapter 13 bankruptcy can provide substantial financial benefits. Talk to us today and arrange for a free, no-obligation case evaluation as soon as possible. Let our team of professional, reliable Fresno County Bankruptcy Attorneys help you resolve your financial issues and take control of your financial freedom.