Steps in a Chapter 13 Bankruptcy Case

Below is a Chapter 13 timeline outlining the steps you can expect to encounter after filing for Chapter 13. Most filers receive a Chapter 13 discharge in 60 months—possibly less if your income is low enough or you pay 100% of your debts. Because some dates overlap, you'll want to consult with your attorney for specifics or read more about how to file for Chapter 13 bankruptcy.

1. Prepare and file your Chapter 13 bankruptcy case.

Start by locating financial documents, determining whether you're eligible for Chapter 13, completing your official bankruptcy paperwork, and taking a prefiling credit counseling course (you can take it anytime during the 180 days before filing your Chapter 13 bankruptcy case).

Your case will begin when you submit your completed paperwork and filing fee to your local bankruptcy court. If you have counsel, your lawyer will file your case online. Learn how to benefit from an emergency bankruptcy filing when you don't have time to complete the entire bankruptcy petition.

The automatic stay takes effect when you file your bankruptcy case. It bars most creditors from taking any actions to collect what you owe, including stopping lenders from foreclosing on your home.

2. Review information and deadlines set by the bankruptcy court.

You will receive a Notice of Appointment of Trustee from the court in the mail. It informs you who the Chapter 13 trustee responsible for administering your case is and provides contact information.

You and your creditors will also receive important information in a Notice of Chapter 13 Case, including the meeting of creditors date, the creditors' claim deadline, and the confirmation hearing date (more below).

3. Begin paying your proposed Chapter 13 plan payment.

You'll begin paying the amount proposed in your Chapter 13 plan about 30 days after filing. The court won't have approved your plan yet, but making your monthly payment before the confirmation hearing allows you to complete the case within the 36- or 60-month requirement.

If the bankruptcy court doesn't approve or "confirm" your plan, the trustee will return your money, minus administrative costs and certain interest-incurring secured payments like car payments. It's important to pay these debts on time to prevent a buildup of unpaid fees and interest that could undermine plan completion.

4. Prepare for and attend the 341 meeting of creditors.

At least seven days before the 341 meeting of creditors, a hearing all filers must attend, you'll provide the trustee with "521 bankruptcy documents," including bank statements, paycheck stubs, four years of tax returns, and other documents (some jurisdictions might require you to file some documents with the court).

Other financial information a trustee might require include proof of insurance, mortgage and car loan balances, retirement, stock, and investment statements, and income and expense statements if you own a business.

The initial Chapter 13 meeting of creditors will be set within 40 days of filing. During the meeting, the trustee will verify your identity and ask questions about your filing. Any creditors who appear can also ask about your financial affairs.

5. Respond to objections and modify the plan before the confirmation hearing.

The trustee or a creditor can object to your plan if it's believed you aren't paying as much as you should. The trustee will often discuss potential problems informally at the 341 meeting and file a formal objection if the filer fails to fix the problem and amend the plan. The bankruptcy court rules on unresolved objections at the confirmation hearing.

6. Review and respond to creditor claims.

Creditors file proof of claim forms stating the amount owed and the debt type, along with a contract or other supporting documents, within 70 days of the bankruptcy filing. Government creditors have 180 days to file claims. If a creditor doesn't file a proof of claim by the deadline, you'll have 30 days to file it for the creditor.

You or the trustee will file a written objection to a creditor's claim if you have a reason to object. You'll want to file it as soon as possible to give the creditor the proper notice.

7. Attend the Chapter 13 confirmation hearing.

You or your attorney attend the confirmation hearing, which will be set no later than 40 days after the 341 hearing. The bankruptcy court will review your proposed plan and objections raised by creditors or the trustee before deciding whether to "confirm" or approve your repayment plan.

If the court approves your plan, you'll continue making your proposed payment. However, if the trustee or creditor raises a valid objection, the court might give you time to modify your plan and continue the Chapter 13 confirmation hearing. It's common to "amend" or change a Chapter 13 plan in response to an objection by the trustee or a creditor.

8. Monitor creditor payments and provide required documents throughout the case.

While your Chapter 13 plan is in effect, the court, trustee, U.S. Trustee, or creditor could request annual tax returns. Also, depending on your jurisdiction, the trustee will send you periodic statements showing creditor payments. You might be able to access the information on the trustee's website. Contact the trustee for instructions.

It's important to keep track of the payments and pay any late fees assessed for a delinquent mortgage or car payment. This situation can occur when you fall behind on a plan payment, preventing the trustee from sending the funds on time. If you don't pay the fees separately, the outstanding balance will continue to grow, and you'll owe a significant amount at the end of your case.

9. File the final paperwork and receive the bankruptcy discharge.

You will file a certificate showing you completed a debtor education course before making your last plan payment. Also, you'll likely verify that you're current on support payments and provide other information.

The court grants your bankruptcy discharge erasing the remaining balances of qualifying debts after you complete your plan and fulfill other requirements. The court might schedule a brief final court appearance called a "discharge hearing." Otherwise, you'll receive a discharge notice by mail about a month after completing your plan payments or receiving a hardship discharge.

Need More Bankruptcy Help?

Did you know Nolo has made the law accessible for over fifty years? It's true—and we wholeheartedly encourage research and learning. You'll find many more helpful bankruptcy articles on Nolo's bankruptcy homepage, and information needed to complete the official downloadable bankruptcy forms is located on the Department of Justice U.S. Trustee Program.

However, online articles and resources can't address all bankruptcy issues and aren't written with the facts of your particular case in mind. The best way to protect your assets in bankruptcy is by hiring a local bankruptcy lawyer.