A Chapter 13 Florida bankruptcy takes longer to complete than a Chapter 7 petition since payments will have to be made from the petitioner's future income in order to pay creditors over a period of 3 to 5 years. It is best to seek counsel from the bankruptcy lawyers at the Law Offices of Justin McMurray to understand the complex process of a chapter 13 bankruptcy in Florida. Make the best decisions to protect your financial health. The following will serve as your guide as you go through the Chapter 13 bankruptcy process:
- First day – The actual filing of your bankruptcy petition counts as the first day of the process. Once filed, the process officially starts, followed by the release of an automatic stay, which legally requires your creditors to discontinue all collection activities and pending lawsuits. A trustee will be assigned to preside over the case.
- 15 days after filing – Once the petition is in motion, you are required to file for your repayment plan and financial schedules within or approximately 15 days after filing the petition. These documents may include your financial schedules, provisional repayment plan, and documents to assess your eligibility for a Chapter 13 Florida bankruptcy.
- 30 days after filing – Payments can start 30 days after the filing. If you fail to make your first payment within a month of filing your petition, the case can be canceled by the court.
- 45 days after filing – The creditor's meeting should be scheduled shortly after your first payment. This meeting is primarily designed to evaluate the proposed repayment plan. The creditors and trustee must file their objects to the plan within 30 days of the creditor's meeting.
- 90 days after filing – Final recommendations to the bankruptcy court regarding your repayment plans are made during the confirmation hearing, which is held approximately 90 days after filing the petition. A judge appears at the confirmation hearing to confirm bankruptcy and decide about the final repayment plan.
- 135 to 225 days after filing – Proofs of claim that confirm the balance of debts must be filed.
- Three to 5 years after filing – Repayment plans may be completed approximately 3 to 5 years after the initial filing of the petition. Over the course of the plan, you must make regular payments to the trustee to maintain agreement with the Chapter 13 bankruptcy Florida process.