Before deciding to file for Chapter 13 bankruptcy protection, many people wonder what kind of timeline they will be facing. It is a good question, and a very valid one; bankruptcy does take a bit of time, and during that time you may have to put certain life events on hold. Here, a Cincinnati bankruptcy lawyer offers a helpful timeline of the major milestones in a typical Chapter 13 filing process.
Before Filing Chapter 13
Before you file Chapter 13, says the bankruptcy lawyer, you must take steps to ensure your eligibility to file. You must not have had a previous bankruptcy petition dismissed in the past 180 days, whether through failure to follow procedure or voluntary withdrawal. You must also attend mandatory credit counseling prior to any bankruptcy filing, within 180 days from the day you intend to file. You must also be a resident of the state in which you will file the Chapter 13 for at least 90 days prior to filing.
This is the day your bankruptcy lawyer will formally file your petition. All creditors listed in the filing report will be notified of Chapter 13 proceedings, required to halt collection activity, and an automatic stay will be issued preventing further collection action. At this point you will be appointed a federal bankruptcy trustee to oversee your case.
After the Chapter 13 is approved, you have fifteen days to submit your proposed payment schedule and repayment plan with the court. Most of the time, your bankruptcy lawyer will have filed these materials on filing day. Thirty days after filing is the due date for your first payment under the accepted repayment plan. At this point you are in repayment, and must make all monthly payments outlined in your plan during the three to five year period agreed upon in the filing.