Chapter 13 Bankruptcy

Reorganize Debt

When an individual does not qualify for Chapter 7 bankruptcy, he/she is most likely eligible to file for Chapter 13. In most cases, individuals who file for Chapter 13 bankruptcy have suffered from a temporary loss that has put them too far behind in debt to catch up on their own. Chapter 13 bankruptcy does not completely erase debt, but consolidates debt and restructures it into a monthly payment plan that is affordable. Usually people awarded Chapter 13 make sufficient income to cover any living expenses, but not enough to pay off debts in full. When chapter 13 is awarded, the debtor pays for living expenses first, and then any left over money is used to repay creditors, even if it's just pennies on the dollar. Chapter 13 bankruptcy cases typically last for three to five years from initial filing to discharge, depending on the individual's ability to pay.

Chapter 13 Timeline

Chapter 13 Bankruptcy cases are significantly different from Chapter 7 Bankruptcy cases. There are too many extraneous variables to include within the scope of this illustration. However, the following flowchart represents the basic course of a typical successful Chapter 13 Bankruptcy case from the initial client interview through discharge. Typical Chapter 13 Bankruptcy cases can take between three to five years from Filing until Discharge. Case complexities and variables may extend the process.

Processing

Bankruptcy processing time varies from case to case, depending upon the size, nature and complexity of the case. However, most cases are processed and ready for filing within two to three weeks from submission of the completed Homework Packet. Chapter 13 Bankruptcy cases are much more complex than Chapter 7 Bankruptcy cases and could take longer to process.

Proof of Income

Clients who have turned in their completed Homework Packet must continue to send in paystubs or evidence of income to Doan Law Firm up until the date their case has officially been filed with the United States Bankruptcy Court.

Emergency Filing

Emergency Bankruptcy Filings can usually be filed instantly and at virtually any time to stop creditors before a foreclosure, wage garnishment, or lawsuit can take place. Additional fees may apply.