In order to receive the relief from debt through Chapter 13 bankruptcy, you first have to be familiar with the process of adequately filing Chapter 13. It’s definitely the best idea to hire an experienced Chapter 13 bankruptcy lawyer in San Diego to help you through this complicated and complex process. However, that doesn’t mean you should not learn more about all the steps that make up a successful bankruptcy under this chapter.

What are the steps in the Chapter 13 process?

Chapter 13 bankruptcy is designed to grant debt relief to individuals by organizing all of their necessary payments into a single monthly installment, as well as other advantages over other forms of bankruptcy. However, reaping the benefits requires a successful bankruptcy procedure. Here are the most important steps during the process of filing Chapter 13.

Completing a credit counseling course

No later than six months prior to filing Chapter 13, you are required to attend a credit counseling course through the U.S. Trustee-approved agency. You can find the list of approved providers of this counseling program online.

Preparing the bankruptcy petition and repayment plan

Chapter 13 requires you to fill out many forms, including a bankruptcy petition and several schedules. Here, you need to be honest and fully disclose all the property you have, as well as debts, property transfers, and income.

More importantly, you need to design a repayment plan. This is the crucial part of all Chapter 13 bankruptcies, and this plan has to comply with all the judicial requirements. This is the part of the process where you will most likely need an attorney.

Filing the petition, the plan, and any additional documents

Once you’ve filled out all the necessary paperwork and created a repayment plan for your debt, it’s time to file all of the required documents alongside a recent tax return that proves you’ve been filing your returns during the last four years.

Getting the trustee for your case

A trustee will be appointed to your case. They are in charge of reviewing your repayment plan and ensuring it complies with the law. Also, they will collect the payments designed in your plan and distribute them to all your creditors. Finally, they will monitor your income and your expense reports.

Automatic stay begins

Immediately upon filing your bankruptcy documents, automatic stay begins. The automatic stay prohibits all of your creditors from making further collections and from contacting you.

Attending the meeting of creditors and confirmation hearing

The trustee first conducts the 341 meeting of creditors outside the courtroom. Here, you will receive multiple questions about your current financial situation and your proposed plan. Also, you will have to attend a court hearing, called the confirmation hearing, where the judge will approve your plan. Or not, if it doesn’t comply with the guidelines.

Completing a financial management plan

Finally, before receiving your bankruptcy relief, you have to undergo and successfully complete the debtor education class. This course is designed to help you remain financially independent when your bankruptcy case ends.

Receiving your discharge

Finally, once you successfully complete all the requirements on this type of bankruptcy, and your repayment period ends, you will receive a discharge from the court. It will wipe out all the qualifying debt and balance and help you continue your financial recovery.

Who are the most reputable Chapter 13 bankruptcy lawyers in San Diego?

Being familiar with all the steps of Chapter 13 bankruptcy and successfully reaping all the benefits of this form of bankruptcy is important for receiving the fresh start you were looking for. Also, you can consider the many advantages of Chapter 7 and choose to file that form of bankruptcy if it suits you better. Just make sure to avoid doing certain things before filing Chapter 7. If you need help with your bankruptcy claim, Chang & Diamond are here to help!

All you have to do is give us a call, schedule a free initial consultation, and allow us to guide you from there. We are experienced professionals who have handled numerous Chapter 13 bankruptcy cases for clients across San Diego and the area. We have the qualifications, the skills, and the knowledge to ensure you get the relief you deserve. We’re located near the Kearny Mesa Recreation Center, so you should be able to easily locate us. Call us today!