What To Expect With A Chapter 13 Bankruptcy Case
If you are experiencing problems paying your bills and are on the verge of losing your home, you might want to evaluate Chapter 13 bankruptcy. This branch helps people when facing these types of situations and can help you, too. As you begin searching to learn more about Chapter 13, you might have questions about what to expect. You can talk to a lawyer about these questions, but here are several things you should always expect with a Chapter 13 bankruptcy case.
Your Lawyer Will Ask for Lots of Information
Filing for Chapter 13 often takes several days or weeks, as there is a lot of information needed on the filing documents. Your lawyer will give you a list of the information he or she needs for your case. It is your responsibility to gather the necessary documents to give to your lawyer. Some of the things you will need include loan statements, debt statements, bank statements, and tax returns. You may need many other documents, too, and your lawyer will also pull your credit report.
You Must Attend a Court Hearing
Next, you will be required to attend a court hearing with your local bankruptcy court. You might have to attend several meetings with the court, but this varies and depends on the case. When you have a hearing scheduled, you cannot miss it. If you do, it could cause problems in your case.
Your Plan Lasts Five Years
The next thing to expect with Chapter 13 is a repayment plan that lasts five years. Some people get by with a three-year plan, but most have five-year plans. The plan requires a monthly payment from you to the trustee. The trustee handles your finances during this time and makes payments to your creditors. When you complete the case and make every scheduled payment, the trustee offers a discharge of your case. At this time, the trustee might discharge some of your remaining debts.
Your Plan Might Change
The plan you begin with in your Chapter 13 case might remain the same for the entire time, or it might change. If you have any life changes, you must notify your lawyer as these changes might affect your repayment plan. For example, if you get a raise at work, you might have to pay more for your plan payments.
If you would like to learn more about Chapter 13, go to sites like https://www.taylorcrockett.com/.