Chapter 13 bankruptcy allows a debtor to keep their property while repaying debts over a term of up to five years. The repayment plan is implemented to allow the debtor to use his or her disposable income to pay down debt. Also known as reorganization bankruptcy, Chapter 13 in St. Louis isn’t right for everyone. Clients can browse this website to get an idea of what to expect during Chapter 13 bankruptcy.
Learn and Decide
Before a client makes a decision, they should learn more about this type of bankruptcy. An attorney can tell the debtor about Chapter 13, as well as other choices like Chapter 7, Chapter 11 and payment deferments. With the help of the Law Offices of Steven K. Brown, the client can determine whether Chapter 13 is right for them.
Determine the Value of Assets
Many factors go into formulating a Chapter 13 payment plan. Adding up the value of the client’s assets will help them determine how much of their personal property is protected from seizure during bankruptcy.
Fill and Submit Paperwork
After an attorney determines the client’s eligibility for Chapter 13, the client must furnish all of their financial information. The forms submitted help the court to devise an appropriate repayment plan.
Meet the Trustee
Shortly after filing for Chapter 13 in St. Louis, the debtor must meet the court-appointed trustee to review their paperwork and their repayment plan. In some cases, creditors appear at the meeting to ask questions or negotiate payment terms.
Go to the Confirmation Hearing
Soon after the trustee meeting, a confirmation hearing is held. During the hearing, the judge will rule on the suggested repayment plan. Here, creditors can voice their objections and the judge will rule on them as well.
Make Timely Payments
Within one month of the confirmation hearing, the debtor must start making payments according to the plan. They may be required to go back to court if problems arise, and their case may be dismissed if they continually miss payments.
Once the repayment plan is completed, the client receives a bankruptcy discharge. Here, the debtor is relieved of all unsecured debts listed in the plan, and the case concludes if all scheduled payments have been made.