What happens when you file chapter 13 bankruptcy in Las Vegas?

In a previous blog entry, we discussed what happens during the course of a Chapter 7 bankruptcy case.  We will now describe the events of a Chapter 13 case.

For the most part, the events are similar, with the exception that in a Chapter 13 case, the debtor needs to file a plan indicating how he or she will repay debts over a period of 3-5 years.  For more information about the differences between a Chapter 7 case and a Chapter 13 case, click here.

Here are the major highlights of a Chapter 13 case:

• Before filing for bankruptcy, call our Las Vegas offices at 702-903-1208 to schedule a free initial consultation with our knowledgeable and experienced bankruptcy lawyers.  If you are calling from within Nevada, you can also reach us at 702-903-1208. We’ll help you determine whether bankruptcy is right for you.

• You must complete a credit counseling course within 6 months prior to filing for bankruptcy.  Our bankruptcy lawyers will provide you with a list of approved credit counselors in Las Vegas.

• Once the course is completed, our bankruptcy lawyers will file your bankruptcy petition for you, along with other appropriate documents listing your creditors, assets and liabilities, in the bankruptcy court in Las Vegas.  Your creditors will be notified by the clerk of the bankruptcy court, and all legal actions and collection activities must stop immediately.  Additionally, the bankruptcy court will assign a bankruptcy trustee to oversee your case.

• Within 15 days after your bankruptcy case is filed, you will need to file your repayment plan.  Our lawyers will help you decide how much each creditor will receive, and when to pay them.

• Within 30 days after your bankruptcy case is filed, you must start making repayments under your plan.
• In the 3-6 weeks following your bankruptcy filing, the bankruptcy court will schedule a meeting of your creditors, which you are required to attend.  The trustee appointed to your case will also attend.  At this meeting, you will be asked questions about the documents filed in your bankruptcy case with the bankruptcy court, as well as your repayment plan.  Our lawyers will represent you at the meeting and will resolve anything your creditors or the trustee do not agree with or understand.

• Following the meeting of your creditors, the bankruptcy trustee and your creditors have 30 days to object to all of your exemption claims.  We will make sure that your exempt property does not fall into the hands of your creditors.  Your creditors then have 60 days after the meeting to object to your plan.

• 45 days after the meeting of your creditors, the bankruptcy court will have a confirmation hearing, during which the bankruptcy trustee will recommend to the judge whether or not your repayment plan should be approved by the court.  At this point, we will likely have already resolved any objections by your creditors to the plan, and can guarantee that your plan will be confirmed.
• Your creditors must then file their proofs of claim with the bankruptcy court within 90 days after the meeting of creditors.  These proofs of claim identify how much you owe them.

• You must complete your repayments under your Chapter 13 plan between 3-5 years after you make your first plan payment.

• Once you have finished making your payments under the plan, you will receive your discharge.

• You are now ready to start fresh, with your financial life back on track!