Orange County Bankruptcy - Chapter 13 Timeline
Chapter 13 bankruptcy in Orange County is an orderly process, and if you understand what happens at each phase of the bankruptcy process, you will be better prepared for what to expect during your own case. This timeline offers a general description of key events that take place during the course of a typical Orange County Chapter 13 bankruptcy. Your case may differ slightly from this timeline if you have additional concerns or if your bankruptcy estate is large or complex.
Important Note – Unless your Orange County Chapter 13 bankruptcy is an emergency filing, before you can file you must complete the required financial counseling course and have a certificate of completion. You will also need to file the repayment plan that was developed during your financial counseling course.
1. When you file for Chapter 13: You will have to file forms that include information about your liabilities, assets, any existing leases or other payment arrangements you may have. You will also need to list any accounts that you may have a future interest in, or money that you expect to receive in the near future. Much of this can be completed by your Orange County Bankruptcy Attorney if you have hired one to represent you, although you will need to supply the information that is needed for the forms.
2. Details of the Repayment Plan: Your repayment plan must cover a 3-5 year period. In most cases, the repayment period is 3 years, though if you need more time to pay off priority and secured debt, then you may take up to 5 years. This repayment plan must be approved by the court, although you will be expected to make payments based on this plan within 30 days of filing for bankruptcy. The most important requirements that your repayment plan must satisfy are the full repayment of priority and secured debt owed, and the payment of any unsecured debts in the amount they could expect to receive under a Chapter 7 liquidation. Additionally, you must commit all of your discretionary income, as defined by the court, to the payment of your debts over the life of the repayment plan.
3. The Meeting of Creditors: This meeting gives the bankruptcy trustee and your creditors the chance to ask you questions about your financial situation and your ability to repay your debts. In most cases, your creditors are unlikely to attend this meeting. Instead, you will most likely speak to just the bankruptcy trustee, who will verify your financial information and explain certain aspects of your bankruptcy filing to you, to be certain that you understand the requirements in the case.
4. Your Repayment Period: For the next 3-5 years, depending upon your plan, you will be expected to make regular payments to the bankruptcy trustee, who will in turn disburse those payments to your creditors. If you can complete this repayment period successfully, any remaining debts will be discharged and you will be free to start over, while retaining your possessions.
If you have concerns about how your Chapter 13 bankruptcy case may proceed, you should contact one of our professional Orange County Bankruptcy Attorneys today. We can help you to understand how the laws pertain to your unique circumstances and how to best proceed in your individual case so that you have the best outcome possible. Contact our premier Orange County Bankruptcy Law Firm today and let us set up a free initial case evaluation to address any concerns you may have.