Chapter 13 Personal Bankruptcy Timeline:

• As per norms, whenever an individual decides to file for a Chapter 13 bankruptcy protection, he/she is allowed to repay his/her debts over a period of time up to five years through a court-approved payment plan.
• However, to get oneself included in a Chapter 13 payment plan, a creditor must first file a proof of claim setting forth both the amount due and owed and the arrearage owed to the creditor as of the date the debtor filed for bankruptcy protection.

•  30 days after the individual has filed for bankruptcy, he/she will attend a meeting of creditors, also known as a ‘trustee hearing’ or a 341 meeting.
• Starting from the day of the meeting, the trustees have 30 days to object to any of the exemptions listed in the petition.
•  45 days after the meeting of creditors has taken pace, the confirmation hearing of petitioner’s Chapter 13 plan will be scheduled.
• The length of time for the payment plan is determined by the amount of debt to be repaid, and may take anywhere between three to five years.

Chapter 13 Personal Bankruptcy Case Studies:

• An individual with over $160,000 in credit card debt and loan debts and monthly payments of over $1,800 per month filed for Chapter 13 personal bankruptcy. The plan was approved lowering those payments to $595 per month for 36 months. After 36 months any balance owing was discharged and never repaid.
• Another person was scheduled for Sheriff Sale with over $17,000 in arrears on the mortgage. Through Chapter 13 personal bankruptcy filing, the Sheriff Sale could be stopped. The home foreclosure could also be stopped and the arrear amounting to $17,000 was spread over a period of 5 years.
• As far as current financial outcomes of the filing are concerned, the person continues to pay the regular mortgage to the mortgage company, plus a little more than $400 per month to the Chapter 13 Trustee.