While there are a few different types of bankruptcy cases, our firm only files chapter 7s and chapter 13s. A chapter 13 bankruptcy case is a restructuring/payment plan, with the discharge being granted at the end. The payments cannot be less than 36 months or more than 60 months.
Whether you will file a three year or five year plan, can depend on multiple factors. If your income is above the median income for your household size, in your state, you will have to file a 60-month (five-year) plan. If you are below the median income, you can choose to file either a three or five year plan. If you are below median income, your attorney will look at your income, debts, and your case overall to determine if a three or five year is in your best interest.
During a chapter 13 bankruptcy case you will typically only attend one hearing. This is the 341 hearing. It takes about 10 minutes and will be held by Zoom. This is the trustee’s opportunity to gather information to verify your case by the testimony you provide. There are various other hearings during a chapter 13 case, but typically you will not have to attend these. The most common hearing would be confirmation (where a judge orders your plan).
A Chapter 13 case is not a liquidation bankruptcy. Meaning, even if you have non-exempt assets, you will not have to liquidate them to the bankruptcy estate during your case. If you have non-exempt assets, you likely will have a threshold you have to meet during the Chapter 13 payment plan. During chapter 13 your creditors have to get as much as they would during chapter 7.
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If you have questions about bankruptcy and would like to do a free consultation to go over your options, visit www.lifebacklaw.com to speak with an attorney. You will be glad you did!
