Some Procedural Chapter 13 Personal Bankruptcy Information

When you are filing for bankruptcy under chapter 13, it is imperative for you to thoroughly understand the process involved in a chapter 13 bankruptcy case. Since, the process involves legal complexities, proper personal bankruptcy guidance provided by a bankruptcy lawyer could be of immense importance to the debtor.

When you need Bankruptcy Advice under chapter 13, it is imperative for you to thoroughly understand the process involved in a chapter 13 bankruptcy case. The primary objective of bankruptcy laws is to provide legal protection to a debtor against creditors. It is very much imperative for you to know that a chapter 13 bankruptcy focuses on a repayment strategy to pay back the creditors within a time frame of 3 to 5 years. The various steps followed in a typical chapter 13 bankruptcy case are:
1. Formulation of a chapter 13 repayment plan
2. Trustee meeting
3. Confirmation of the chapter 13 plan
4. Court motion to allow and disallow claims

Formulation of a chapter 13 repayment plan.
A chapter 13 bankruptcy permits the debtor to retain ownership of his properties but a debtor is required to furnish a detailed monthly repayment plan for paying back his creditors. Such a filing chapter 13 bankruptcy is approved by the bankruptcy court. The court appoints a “Chapter 13 Trustee” for taking care of the administrative aspects of the case. The debtor might be required to appear before the bankruptcy judge when finalizing the plan in front of the creditors. Alternatively, a debtor can propose a sale of assets or a paying off the creditors by availing a home mortgage refinance loan. But there are post-petition counsel fees and trustee commissions involved in the process which is to be borne by the debtor.

Trustee meeting
The function of chapter 13 bankruptcy trustees is very much like the ones executed by chapter 7 bankruptcy information. Once the debtor submits the repayment plan, the Trustee calls a meeting of creditors which is also called the “341 meeting” that is mandatory under section 341 of the bankruptcy code. Such a meeting is normally called exactly 30 days after filing of the bankruptcy petition and it helps the Trustee get an overview of the debtor’s financial situation. The Trustee also has a “orientation program” with the debtor before the beginning of the meeting for about two hours to help the debtor understand the chapter 13 process.

Confirmation of the chapter 13 plan
The court approves the chapter 13 bankruptcy plan within 45 days of the Trustee meeting subject to the condition that the plan is in accordance with the provisions of the bankruptcy code. Once approved, the plan serves carves out a legal relationship between the debtor and his creditors for the remainder of the case

Court approvals to allow and disallow claims
After 6 months of confirmation of chapter 13 plan, the debtor can file a motion to allow and disallow claims with the bankruptcy court. This provides the debtor with an opportunity to object to claims made by creditors and to prevent certain liens imposed against the debtor’s properties.

Considering the above intricacies, it is always desirable for a debtor to obtain proper filing personal bankruptcy prior to filing a petition in the bankruptcy court. Nevertheless, the best way to get proper guidance is to get expert help from qualified and experienced chapter 13 bankruptcy attorneys employed by reputed online professional service providers like wwwbankrutpcyonly.com who legally assist bankruptcy filers in filing bankruptcy online.

It is imperative for debtors to know the chapter 13 bankruptcy process when filing for bankruptcy under chapter 13. Since, the process involves legal complexities, proper personal bankruptcy information could be of immense importance to the debtor.