Chapter 7 and 13, Part Three
What Happens When You File for Chapter 13?
Similar to a Chapter 7 case, you will file for Chapter 13 by filling out forms describing your income, assets, and debts. You will also fill out a form describing your plan for paying back your debts over the next few years. You will pay a filing fee of about $150 when you file (same for married couples). If you can’t afford the fee, you may be allowed to pay it in installments, but it will not be waived.
Soon after you file, the court will notify you of the meeting of creditors, at which time you will meet with the trustee (not a judge) and any interested creditors. Unsecured creditors rarely attend this meeting, but secured creditors may, especially if they disagree with a value you’ve assigned property. The trustee will go over your papers and ask questions about your plan and the papers you filed.
The same day, or within a few weeks, a confirmation hearing will be set. At this time, the court decides whether to accept the plan, and if so, “rules on confirmation.” Once your bankruptcy plan is confirmed, the trustee will begin payments to your creditors. (You pay the trustee, not your creditors.) During the three years or so, as long as you make your payments, you’re pretty much free to conduct your financial life as you wish.
