When your financial situation becomes overwhelming, you may consider either Chapter 7 or Chapter 13 bankruptcy. The latter technically takes several years to finalize. If you’re wondering what that process entails, the guide below offers a brief overview. 

The 5 Stages of Chapter 13 Proceedings

1. Filing the Petition 

A knowledgeable attorney can help you prepare the bankruptcy petition, which must be filed with the court. This commences the proceedings and enacts an automatic stay, which prevents creditors from taking legal action against you as long as your case is pending. 

2. Submitting Critical Documents

After reviewing your petition, the trustee is going to request supporting documentation. You must submit all requested documents within a matter of weeks so the trustee has ample time—at least seven days—to review them before the meeting of creditors. Within 30 days of filing, you will also have to start making payments on the reorganization plan. 

3. Attending the Meeting of Creditors 

The court will schedule a meeting of creditors between three and eight weeks after receiving your petition. You must attend this meeting, during which creditors will have the opportunity to ask questions about the debts you intend to reorganize.

The trustee may also question you about the repayment plan you proposed. If the trustee or any creditors wish to object, they must do so within a matter of weeks. The specific deadline depends on the jurisdiction. If no objections are filed, though, your case will proceed. 

4. Completing Debtor Education 

Bankruptcy petitioners must complete an approved debtor education course and file their certificate no more than 45 days after the meeting of creditors. This is usually 75 days or so after the filing of the initial petition. 

5. Finalizing the Payment Plan 

Assuming there were no objections, the court will likely approve the payment plan within 30 days of the meeting of creditors. Once the final payment is made—anywhere from 36 to 60 months later—the trustee will issue a Notice of Complete Plan Payments, and any applicable debts that remain will be discharged. 

To see if you’re a good candidate for Chapter 13 bankruptcy, consult Sam Turco Law Offices. Located in Lincoln and Omaha, this firm is proud to help clients across the state of Nebraska achieve debt relief. Since 1992, attorney Sam Turco has been helping individuals and families navigate bankruptcy proceedings. Learn more about his capabilities online. To request a consultation, call (402) 614-7171.