According to bankruptcy law definition, bankruptcy is a legal process where an individual or business which can no longer repay its debts pursues debt discharge or recognition by the courts. Many businesses or individuals file for bankruptcy when they are in distress. You can file for bankruptcy if you wish to retire debt at a discount, recapitalize, or restructure company operations.
The debtor in bankruptcy case often initiates a bankruptcy case, where they seek an automatic stay, which automatically bars creditors from taking any action to collect a debt or repossessing debtors’ properties.
To file a case, go to a licensed bankruptcy law firm, where you will know the cost of filing and the way forward. If you do not have the finances to hire a bankruptcy attorney, you can file bankruptcy without one. Hence, that implies a court can declare bankruptcy without a lawyer in what is referred to as filing pro see.
The various types of bankruptcies and case complexity influence bankruptcy filing costs. You can check bankruptcy filings to ascertain assets’ liquidation and individual reorganization.
For people who would rather repay their debts than discharge them — or don’t like the long-lasting consequences of other types of bankruptcy — a Chapter 13 bankruptcy can be an attractive option. Last year, approximately 333,626 Chapter 13 bankruptcies were filed by individuals hoping to restructure their debt into something more manageable.
So while it can be reassuring to know you’re not the only one seeking this type of bankruptcy, it can still be intimidating to go into the process without knowing anything about the typical timeline of a Chapter 13 bankruptcy.
Want to know more about the Chapter 13 bankruptcy timeline? Here are the most crucial steps that take place when you choose to work with a Chapter 13 bankruptcy attorney to file your bankruptcy:
Step 1: Filing for Chapter 13 bankruptcy
After looking up all the Chapter 13 bankruptcy information you need and deciding it’s the best option for your financial needs, it’s time to file for bankruptcy with the help of an attorney. Having legal help filing bankruptcy is highly recommended, as a bankruptcy attorney will help you file your paperwork correctly and quickly.
Step 2: Automatic stay begins
Immediately after you file for bankruptcy, the automatic stay will go into effect. This effectively prohibits creditors and debt collectors from contacting you, harassing you or taking other actions to try and obtain the money you owe to them.
Step 3: Notice of trustee and notice of Chapter 13 case
When the bankruptcy court receives notice of your filing, they will send you a notice of appointment of trustee, which informs you that you have a court-appointed trustee to oversee the proceedings of your bankruptcy. In addition, you will receive a notice of Chapter 13 case which outlines the details of your bankruptcy, your debt reorganization and the rest of your Chapter 13 bankruptcy timeline.
Step 4: Your debt repayment plan begins
After working with your attorney and the bankruptcy court to create a debt repayment plan, your new debt payments will begin — and they typically last for around five years. After this period, you will have successfully filed for Chapter 13 bankruptcy, and will have managed your debts into something you can afford to pay.
Have any other questions about the Chapter 13 bankruptcy timeline or where to get help with filing bankruptcy? Feel free to ask by leaving a comment below. Links like this.