How Long Does It Take To Get Approved for a Chapter 13 Reorganization Plan

By admin / February 27, 2023

If you’re considering filing for bankruptcy under Chapter 13, one of the questions you may have is how long it will take to get approved for a reorganization plan. The answer depends on several factors including the complexity of your case and the efficiency of the court system in your area.

In general terms though, it can take anywhere from several weeks to several months to get approved for a Chapter 13 reorganization plan. Here’s what you need to know about the process.

Preparing Your Petition

Before you can file for Chapter 13 bankruptcy, you’ll need to prepare a petition that includes detailed information about your financial situation. This includes lists of all your assets and liabilities, as well as information about your income, expenses and debts.

Once you’ve prepared your petition, you’ll need to file it with the bankruptcy court in your area. The court will charge a filing fee (currently $310) which must be paid at the time of filing.

After you’ve filed your petition, an automatic stay will go into effect. This means that most collection actions against you will be stopped while your case is pending.

Meeting With Creditors

About four to six weeks after filing your petition, you’ll be required to attend a meeting with creditors called a “341 meeting.” At this meeting, creditors can ask questions about your financial situation and make objections if they believe there are issues with your case. However, if you have a bankruptcy attorney in Montgomery helping you along the way then they will be there to assist you at the hearing.

While this meeting is typically held within four to six weeks after filing for bankruptcy, it can sometimes take longer depending on scheduling conflicts or other issues. Once the meeting is complete though – assuming no additional information or documents are requested – then approval could come shortly afterwards.

Submitting A Plan

After the creditor’s meeting has been held and any objections have been addressed (if applicable), it’s time to submit a proposed reorganization plan. This plan outlines how much money you’ll pay each month towards paying off debts over a three-to-five year period.

The length of time required for approval varies but some courts may require that payment plans be submitted within 14 days following creditor meetings while others may give up to 45 days.

The plan must also include details about how secured debts (such as mortgages or car loans) will be handled during this repayment period. Unsecured creditors (like credit card companies) usually receive only partial payment under these plans since they are lower priority than secured creditors who hold liens on property such as homes or cars.

A trustee assigned by the court will review the proposed plan and make recommendations based on whether it meets legal requirements set forth in Bankruptcy Code sections 1322(a) & (b). If everything checks out according to their standards then approval should follow soon thereafter barring any further complications like objections from creditors or trustees themselves questioning certain aspects of payment schedules etc., which could extend approval times beyond expectations by adding new negotiations back into play between parties involved in case proceedings themselves!

Confirmation Hearing

Once the trustee approves the proposed plan, there will be another hearing called a confirmation hearing where both debtors and creditors have an opportunity to object (if they wish). Assuming no objections arise at this stage either then confirmation should follow shortly thereafter allowing debtor(s) relief from eligible debts included in their approved payment schedule!

Getting approved for a Chapter 13 reorganization plan takes time but can provide significant relief from overwhelming debt when successful! While every case is unique, so too are timelines associated with each individual scenario; however knowing what steps need to be taken before submitting plans gives better understanding regarding potential wait times involved throughout the entire process! Remember though – consulting with an experienced attorney familiar with bankruptcy laws remains a key element towards making informed decisions throughout the entirety of proceedings involved with filing under chapter thirteen guidelines!


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