Salt Lake City Bankruptcy Attorneys

How Does a Chapter 13 Work?

A Chapter 13 bankruptcy case begins with the filing of a petition with the bankruptcy court. Along with this petition, the debtor must file extensive financial information regarding assets, expenditures, income (past and future projected), bills, property, leases, and more. The debtor must also file a certificate that verifies he or she has completed mandatory credit counseling by an approved agency. You must also file a proposed payment plan to repay part or all of your debts over a period of three to five years.

After you file for Chapter 13, the bankruptcy court will appoint a trustee to oversee your case. The trustee will collect monthly payments from you for the duration of your payment plan and will then distribute those payments amongst creditors.

Filing a Chapter 13 bankruptcy petition places an “automatic stay” on the majority of collection efforts against you. This includes foreclosure proceedings and contact of any kind from creditors. The stay may last for only a short period of time, depending upon the case. Filing for Chapter 13 also places an automatic stay on foreclosure proceedings, meaning that a debtor will have the opportunity to make past due payments over time.

Approximately 20 to 50 days after you file your Chapter 13 petition, the bankruptcy trustee will hold a meeting of creditors. At this meeting, you will need to be present and may be required to answer questions of the trustee and creditors while under oath. Any issues with your payment plan will also be resolved at this time.

After successfully filing for bankruptcy under Chapter 13 of the U.S. bankruptcy code, you will need to make a regular payment (monthly or biweekly) to the bankruptcy trustee, usually for approximately three to five years. After successfully completing this payment plan, all remaining eligible debts will be discharged.

Consult a Salt Lake City Bankruptcy Lawyer

At the Stone Law Firm, our skilled lawyers are here to help you file for Chapter 13 bankruptcy. We represent clients throughout all of Salt Lake City, Provo and Ogden, Utah and offer a free consultation to discuss your matter. When you work with a Salt Lake City bankruptcy lawyer at our firm, you can count on our experienced representation, our respect and our discretion.

Considering Chapter 13 bankruptcy? Contact a Salt Lake City bankruptcy attorney at the Stone Law Firm today.