What steps are there to a BK 13????

[suzyqpug]

What are the steps with a chapter 13. As soon as i get to my attorney and until we make our first payment?

Do they want money right there? Do you tell the attorney at the first meeting you want to file?

What questions are asked at the creditors meeting?

And does anyone know what Creditors show up? Like citibank, sears etc.

[afterbk]

this is an excerpt from a helpful website:
Chapter 13 Bankruptcy is Filed By Individuals Who
Want To Pay Off Their Debts Over a Period of Time
Chapter 13 differs from chapter 7 because it involves a repayment plan that is submitted to the trustee and the bankruptcy court for approval. The debtor is required to create a feasible monthly budget that will enable them to meet their basic needs and still be able to afford to make scheduled payments to the bankruptcy trustee. A formal plan is prepared and submitted with the bankruptcy petition to determine how much money will be repaid to the creditors through a deed trust payment each month. Chapter 13 permits a debtor to repay in monthly installments for three to five years and allows the debtor to keep all of their assets, even if their value exceeds the amount of the exemptions allowed by the state. Chapter 13 allows debtors to propose repayment of unsecured debts such as credit cards at a fraction of what was owed. You may maintain your secured assets because, over time, you will be repaying your creditors the amount that you had fallen delinquent. To qualify for chapter 13, your unsecured debts must be less than $250,000 and your secured debts must total less than $750,000. In addition, you must have a stable and regular income.

If a debtor has considerable debts that may be liquidated and lost under Chapter 7 they may consider chapter 13. Debts that would not be discharged under chapter 7 can be included and retained under chapter 13. For example, if a debtor's mortgage or auto payments are behind and they do not have the ability to bring them current, Chapter 13 may be the answer. It will allow the arrears to be paid back over a three to five year period and the creditors would not be permitted to repossess the vehicle, provided the debtor made the bankruptcy payments on time. Chapter 13 allows a debtor who was in arrears on federal income tax to establish a payment plan through which they can pay the IRS back over time. Under chapter 13 the automatic stay will protect any cosigners on the consumer's debts. A chapter 13 bankruptcy is not discharged until all deed trust payments have been made which usually takes three to five years.

Another method to consider before claiming Bankruptcy, is Debt Consolidation . Debt cosolidation is a method that effectively repairs your credit score and credit history .


-hope that helps :P)

[woeisme]

Based on my experience, here is what happens:

Your initial meeting with a lawyer will probably involve him/her explaining the process, asking you some general questions about income, assets, and debts. Ballpark figures are ok for the initial meeting, at least they were in my case. The lawyer then gave me a list of documents I needed to gather, and we arranged payments (in my case, $575 was paid outside of plan, $2425 is paid within the plan.)

Once I made all payments to my lawyer, and gathered all the documents requested (they gave me a checksheet of info they'd need, like 6 months of pay stubs, deeds, morgage papers, insurance papers, list of creditors and their addresses, how much owed to each and when accounts were open, a copy of my credit report, etc.) This list of required documents varies from lawyer to lawyer, since some trustee require a ton of paperwork, others less.

I met with the lawyer and filled out all the paperwork, signed the forms, and the lawyer filed the next morning. We were missing a couple of things at the meeting (in the initial meeting the lawyer said my house appraisal from 3 years ago was ok, at the signing meeting said I needed an updated appraisal, they needed contact info for my work so they could put a wage order in place, etc.) so we got that info to the lawyer before the 341 meeting.

Need to make first payment within 30 days of filing date. Need to continue making these payments until the wage order goes into effect, at which point it is automatically deducted from my paycheck. Some courts allow creditors to send checks, mine required money orders and wage garnishment unless self-employed or I could prove it would be a hardship to have taken from my paycheck.

At the 341, the trustee asked some standard questions about my paperwork, no creditors showed up, and it was over in 5 minutes or less. Had to show ID and a social security card, and answer some real rote questions like did I swear everything on the forms was true to the best of my knowledge, etc. I watched about 10 341 meetings before mine, only 1 creditor showed up for anyone, and I think it was the guy's landlord. No banks sent represenatives, at least not that day. I understand that it's much less likely for a creditor to show up or object at a CH 13 than for CH 7, so probably no one will show unless you have a local creditor who doesn't realize they don't need to be there, they just have to turn in a claim.