When thinking about bankruptcy options, it is best to consider what happens when you file Chapter 13. Filing Chapter 13 is a long process but offers better alternatives for more complex financial situations. Additionally, knowing how to file Chapter 13 is one of the first steps you can take to having a better financial future.

First, making sure that Chapter 13 is right for you can help solve particular financial problems. Then, it is important to closely look at your debt, property, and income. The next step involves filling out specific forms, obtaining a trustee, drafting a repayment plan, making payments, and finally getting your bankruptcy discharge. 

John Dunlap has experience in this area and is willing to help your case. Contact our offices for assistance in Chapter 13 and get a free 30 minute session. 

How long does it take to file Chapter 13?

If you’re considering filing for Chapter 13, finding out how long does Chapter 13 take is likely one of the most important parts of making your decision. If you’re in financial trouble, getting out of it as quickly as possible might be your priority—but Chapter 13 might offer you a better solution to financial freedom.

Chapter 13 can take as little as 36 months but as long as 60 months to repay debts depending on your specific situation. 

The beginning of filing Chapter 13 starts with a credit counseling course within six months prior to filing. This type of counseling course must be done by a government-approved counseling agency. 

In Tennessee, there are a lot of different options for pre-bankruptcy counseling to choose from. Some are free and others aren’t. For a full list of pre-bankruptcy counseling, you can search the U.S. Justice Department’s approved credit counseling agencies by state or view the list of approved pre-bankruptcy credit counseling agencies in Tennessee.

Chapter 13 is a way for you to make up the debt through monthly payments made to a Chapter 13 bankruptcy trustee for a minimum period of 36 months to a maximum of 60 months. This means the entire process could take three to five years to complete. 

How long does Chapter 13 stay on credit report?

Wondering how long does Chapter 13 stay on credit is common curiosity.  According to the Fair Credit Reporting Act, Chapter 13 bankruptcy can only remain on your credit for up to ten years after your filing date. However, it could potentially be removed from the credit report after seven years. 

Many people may think that bankruptcy isn’t for them because of fear of credit being hurt. However, Chapter 13 bankruptcy offers potential solutions to becoming debt free after paying it back. Taking care of your finances through bankruptcy is one way to tackle the issue of debt and rebuild your credit, rather than waiting for it to possibly worsen. 

Forms to be filed for Chapter 13 

There are different forms that you must complete as a part of the filing process. Apart of these collections of paper you will need to include official bankruptcy forms. Additionally, some local bankruptcy forms may be required. There are a list of other potential forms that you may need when filing for Chapter 13.  Among these forms will be The Voluntary Petition for Individuals Filing for Bankruptcy form. 

Having the appropriate documents on hand could play an important role in approving your case. This is why having an experienced attorney’s assistance is important. Call our offices for a free 30 minute session and ask how we can help you.   

Chapter 13 Trustee

After you have filed for Chapter 13 trustee will be appointed to your case to oversee your plan. They are in charge of reviewing the paperwork, making sure everything adheres to the bankruptcy laws, collecting and distributing payments, and ensuring that the repayment plan is being followed accordingly. 

Having an attorney on your side can help see that your case is properly in order and deal with a trustee to make sure you’re getting the best treatment during your Chapter 13 process.

Repayment Plan

The repayment plan lays out how much each creditor will get paid, how long the plan will last, the values of the property, and more. Additionally, the bankruptcy court will approve the plan and then it may proceed. 

The repayment plan will indicate that you will be paying back some or all of your debt to the creditors. Due to specific instructions, this plan may be best fulfilled with the help of an attorney. However, different types of payment such as administrative claims, priority debts, other secured debts, and unsecured debts will all be taken into consideration when discussing what will be owed. 

When you complete the repayment plan all or most of the debt will be paid off. Your non-priority unsecured debts, including any unpaid portions, will be discharged.

Discharge

After the Chapter 13 repayment plan is completed you will be discharged (wiped clean) of the remaining balance of qualified debt. 

The Chapter 13 discharge time frame depends on the certain amount of the repayment plan that has been repaid. The time frame is specific to the type of debt that you have and the amount that you owe. 

Once the specific amount of the repayment plan is complete, creditors may not collect any additional debts beyond the repayment plan for debts included in the Chapter 13 filing. 

Life after Chapter 13 bankruptcy

What happens after Chapter 13 is paid off is the relief of potentially paying off all of your debt. Seeking help from an attorney that will assist you with your journey maybe necessary for a successful Chapter 13 process.

Having an attorney assist with your case can help deal with the debt that you have hanging over your head. You have the chance to start over with a clean slate. Taking care of your finances post Chapter 13 is something that we can help with too. 

Contact us for a free 30 minute session to see how we can help you take the steps to file Chapter 13 bankruptcy to help you become debt free.