Filing for chapter 13 bankruptcy in Ocala can be overwhelming and stressful. This is why you need the guidance of a chapter 13 bankruptcy lawyer with years of experience in handling such cases. Understanding the steps involved when you are going through a repayment plan can also be helpful.
There is no definite timeline for this type of bankruptcy, but there is a specific order of events and an average timeframe for each:
1.Filing a petition for Chapter 13 bankruptcy
The case begins with a petition, which serves as your initial request to the court for bankruptcy. The court issues an automatic stay right after that, and it will make creditors and collectors stop all attempts to collect payment from you. This means you can no longer be harassed via calls, mail, and lawsuits. A trustee will be assigned by the court to your case.
2.Filing the repayment plan and the schedules
Your Attorney will give the court a repayment plan with financial schedules. This is required because the court will use it to determine your eligibility for a chapter 13 bankruptcy in Ocala. This is done approximately 15 days after filing the petition. Information included will be your income, assets, reasons why you filed for bankruptcy, expenses, and liabilities.
3.Beginning of Repayments
Payments start approximately 30 days after filing for chapter 13 bankruptcy, even if the repayment plan has not yet been officially confirmed. This will show the court and your creditors that you are committed to paying your debt and intend to complete the bankruptcy. If you don't make the initial payment within 30 days, the court can cancel your case.
This meeting is attended by your attorney, trustee, creditors, and you. It lets the creditors and trustee evaluate your repayment plan. It takes place place approximately 45 days after filing. To ensure success, you need to have completed your repayment plan proposal, financial schedules, and provided your most recent tax return to your trustee. They can choose whether to ask you questions or not. If they do not agree with your repayment plan, they must file their objections within 30 days after the meeting.
Ninety days after filing, the trustee will give a final recommendation to the bankruptcy court on your Chapter 13 repayment. Creditors can have their say and object again, too. If the judge confirms the bankruptcy, you may continue with your repayment plan.
6.Proofs of Claim by creditors
Creditors must provide proof of claim to the bankruptcy court approximately 135 to 225 days after filing. These are documents confirming your debt balance. If the creditors don't file them, they cannot receive your payments as part of the repayment plan. If non-government creditors are involved, they need to file the proof of claim 90 days after the meeting of creditors. Government creditors are given 180 days.
It may take approximately three to five years to complete the repayment plan. You need to make regular payments to the trustee in accordance with the bankruptcy repayment plan approved by the trustee. You can either reach the end of the plan duration or pay the debts covered by your chapter 13 bankruptcy in Ocala in full, whichever occurs first. A formal discharge from bankruptcy will be granted to cancel the balances that were not paid in full, as long as you have completed your payment plan.
It is crucial to have a chapter 13 bankruptcy lawyer guide you through the bankruptcy Process. Call us for a free consultation. The Law Offices of Justin McMurray P.A. helps clients with bankruptcy and foreclosure representation in Ocala Florida. We can guide you through the process and help you determine if filing a chapter 13 bankruptcy is right for you.