| Step |
When it Happens |
1. You complete a pre-bankruptcy credit counseling course approved by the U.S. Trustee.
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Prior to filing your reorganization bankruptcy petition.
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2. You file for Chapter 13 bankruptcy.
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3. The automatic stay takes
effect. It bars your creditors, once they learn of your filing,
from taking any actions to collect what you owe.
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When you file the reorganization bankruptcy petition.
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4. The court appoints a trustee to oversee your case.
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Within 30 days after you file the reorganization bankruptcy petition.
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5. The Chapter 13 trustee sends you a "notice of commencement" of your case, which usually contains:
- the date of the meeting of creditors,
- the date of the confirmation hearing, and
- the deadline by which creditors must file their claims
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Within 30 days after you file the reorganization bankruptcy petition
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6. You begin making payments under your repayment plan.
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Within 30 days after you file the reorganization bankruptcy petition.
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7. You attend the Chapter 13 trustee's financial
management course, followed by the meeting of creditors (where the
trustee and any creditors who show up can ask you about information in
your papers). A creditor may raise objections to your plan with
the hope of getting you to modify it before the confirmation hearing.
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Within 40-45 days after you file reorganization bankruptcy petition.
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8. You file a modified plan, if you wish.
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At least 30 days before the confirmation hearing.
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9. Creditors file written objections to your plan, if
they wish. The bankruptcy judge will rule on them at the
confirmation hearing.
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At least 10 days before the confirmation hearing.
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10. The court holds the confirmation hearing
addresses any objections raised by creditors or the Chapter 13 trustee, and
approves your repayment plan.
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Courts now hold the confirmation hearing prior to the deadline for creditors to file claims.
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11. Creditors file their "proof of claims" specifying how much they are owed.
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Within 90 days after the meeting of creditors.
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12. You (or the Chapter 13 trustee) file a written objection
to creditors' claims, if you have a reason to object.
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As soon as possible after the deadline for creditors to file their claims.
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13. The Chapter 13 trustee sends you statements, showing:
- who has filed claims and for how much
- how much money has been paid to each creditor
- the unpaid balance owed to each creditor.
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Twice a year, or by request.
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14. The court grants your discharge
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36 to 60 months after you file if you complete your plan payments (sooner if you choose to pay off your reorganization bankruptcy plan early).
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