Going through a Chapter 13 bankruptcy can be a confusing process. In this article, I’ll break down the timeline of a Chapter 13 bankruptcy step by step, so you can better understand what to expect.

Before you file for a Chapter 13 bankruptcy, there are a few tasks you need to complete:

1. Gather financial information: Collect all relevant financial documents, including income statements, expenses, assets, and a list of your debts.
2. Complete a credit counseling course: You must take a credit counseling course from an approved agency within 180 days before filing. These courses are usually completed online and take little time. 
3. Consult with a bankruptcy attorney: It’s a good idea to speak with an experienced bankruptcy attorney to help you navigate the process and make the right decision. You could file bankruptcy without an attorney, but studies have shown you only have about a 2% chance of succeeding. You should almost always hire a bankruptcy attorney if you are filing a Chapter 13 bankruptcy. 

1. Prepare and file your bankruptcy petition: With the help of your attorney, you’ll prepare and submit your bankruptcy petition to the court. Your petition will include a detailed list of your assets, debts, income, and expenses.
2. Create a repayment plan: In a Chapter 13 bankruptcy, you’ll need to propose a repayment plan that shows how you’ll pay off your debts over a 3 to 5-year period.

Once you file your Chapter 13 bankruptcy petition, an automatic stay goes into effect. The automatic stay is a powerful legal protection that immediately stops most creditors from taking any collection actions against you, including:

• Foreclosure
• Wage garnishment
• Repossession
• Lawsuits
• Harassing phone calls and letters

The automatic stay remains in place throughout the bankruptcy process, providing temporary relief and allowing you to focus on completing your payment plan.

1. Meeting of Creditors (341 Meeting): About 4-6 weeks after you file, you’ll attend a meeting with your creditors and the bankruptcy trustee. The creditors’ meeting is an opportunity for your creditors to ask questions about your finances and proposed payment plan.
2. Confirmation Hearing: In many jurisdictions, a confirmation hearing is held only if a creditor, Trustee, or other parties in interest object to the proposed Plan. However, other jurisdictions will hold a confirmation hearing within 45 days of the Meeting of Creditors. The bankruptcy judge will hold a confirmation hearing to decide whether to approve or deny your payment plan. If approved, your Plan will move forward. If denied, you may need to modify your Plan or consider converting to a Chapter 7 bankruptcy.

1. Begin making payments: Once your payment plan is approved, you’ll start making monthly payments to the bankruptcy trustee, who will distribute the funds to your creditors.
2. Periodic reviews: Your bankruptcy trustee will periodically review your case to ensure you meet your payment obligations and comply with any other requirements.
3. Complete a financial management course: Before receiving a discharge, you’ll need to complete a financial management course from an approved provider.

1. Discharge: After completing your payment plan, the court will issue a discharge, wiping out any remaining eligible debts.
2. Credit report update: Monitoring your credit report after discharge is essential to ensure the discharged debts are accurately reported.
3. Case closure: Your bankruptcy case will be closed, and you’ll be on your way to a fresh financial start.

After completing your Chapter 13 bankruptcy and receiving a discharge, focusing on rebuilding your credit is essential. Here are some tips to help you get back on track:

1. Check your credit report: Regularly monitor your credit report and ensure that all discharged debts are accurately reported as “discharged” or “included in bankruptcy.”
2. Create a budget: Establish a realistic budget that accounts for your income and expenses, and stick to it. Your new budget will help you avoid falling back into debt.
3. Pay bills on time: Make sure to pay all your bills on time, as payment history is a significant factor in your credit score.
4. Build an emergency fund: Save money in an emergency fund to cover unexpected expenses and avoid relying on credit.
5. Apply for new credit cautiously: Start by applying for a secured credit card or a credit-builder loan to help establish a positive credit history. Be cautious about taking on new debt, and always pay off your balance in full each month.

Filing for bankruptcy is a complex process, and working with an experienced attorney is essential to ensure the best outcome for your situation. If you’re considering bankruptcy in North Carolina, don’t hesitate to contact our Duncan Law team. Our attorneys, Terry Duncan and Damon Duncan, have decades of experience in consumer bankruptcy and can help guide you through this difficult time. Whether you’re in Charlotte, Greensboro, High Point, Salisbury, or Winston-Salem, our team is here to help. Reach out to us today for a consultation:

• Charlotte, NC bankruptcy lawyer
• Greensboro, NC bankruptcy lawyer
• High Point, NC bankruptcy lawyer
• Salisbury, NC bankruptcy lawyer
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For more information about bankruptcy, check out our bankruptcy FAQs or explore other resources on topics such as tax-related issues and bankruptcy.