When it comes to filing for bankruptcy, surely there are certain similarities between chapter 7 and chapter 13 bankruptcy. But when it comes to timeline, it is completely different for both the filing. So, here, our experienced Pittsburgh bankruptcy lawyer offers some insight for you.The Timeline of Chapter 13 Consumer BankruptcyPrior to the Filing
For Chapter 13 bankruptcy, the federal law requires you to go through credit counseling prior your filing of the case. You must go to an agency that is approved by the DOJ. If you need virtual credit counseling, it can be done over the phone or the internet too.
Once you are done with this and file for bankruptcy, you will have to submit Exhibit D: Individual Debtor’s Statement of Compliance with Credit Counseling Requirement. This is a voluntary petition which is also referred to as Petition for Bankruptcy.
At the same time, we strongly advise you to retain a Pittsburgh bankruptcy lawyer. You are not legally prohibited to file bankruptcy on your own. However, this is a too complex procedure to file on your own. According to the U. S. Bankruptcy Court, “The rules are very technical… Pro se litigants… are expected to follow the rules that govern procedures in the federal courts. Pro se litigants should be familiar with the United States Bankruptcy Code, the Federal Rules of Bankruptcy Procedure, and the local rules of the court in which the case is filed. […] Debtors are strongly encouraged to obtain the services of competent legal counsel.”Submitting Paperwork
Bankruptcy cases require a lot of paperwork to do. When you are hiring a lawyer, they should help you with the following paperwork.
- BI, Voluntary Petition
- B6, Cover Sheet and Summary of Schedules
- B6A, Schedule A: Real Property
- B6B, Schedule B: Personal Property
- B6C, Schedule C: Property Claimed as Exempt
- B6D, Schedule D: Creditors (Secured Claims)
- B6E, Schedule E: Creditors (Unsecured Priority Claims)
- B6F, Schedule F: Creditors (Unsecured Nonpriority Claims)
- B61, Schedule I: Income
- B6J, Schedule J: Expenses
- B7, Statement of Financial Affairs
- B21, Statement of Social Security Number
You need to know that this is not an all inclusive list and depending on your case, you will require to fill up specific forms.The Reorganization Plan
This part is the biggest difference between chapter 7 and chapter 13 bankruptcy. This plan helps the filer get a restructured payment plan for paying the creditors. The other factors of chapter 13 bankruptcy include:
- A longer time period, typically 3-5 year for completion
- Better asset protection with a repayment plan
- Can be only availed by those with financial means
When you are filing for Chapter 13 bankruptcy, you will get the repayment plan that will chalk out how and where you should give your money for paying the creditor. Unlike the chapter 7 bankruptcy, you can keep most of your assets as you are paying the creditors.
For qualifying for chapter 13 bankruptcy, the limit of your secured debt should be $1,149,525 and the unsecured debt limit will be $383,175.
After your filing, you will get the repayment plan in 15 days and will have to make the 1st payment in 30 days. Our Pittsburgh bankruptcy lawyer suggests you follow the repayment plan diligently.The Meeting of Creditor, Debtor Education and Discharge
You have to attend a mandatory meeting six weeks later you file. The other people attending the meeting will be your lawyer, your trustee and creditors.
After the meeting, your creditor will get the timeline of one month for raising any issue with the repayment plan. Our Pittsburgh bankruptcy lawyer will help you through the process.
If you want to file bankruptcy, you need to come to Pittsburgh Bankruptcy Law Group.