Chapter 13 is basically a debt repayment plan approved by a federal bankruptcy court and administered by a court-appointed bankruptcy trustee. Each bankruptcy case is different, but the following information is a general summary of what you can expect under Chapter 13 bankruptcy in Oklahoma:
The Automatic Stay
After you file your bankruptcy petition, your creditors will receive a notice to cease any action against you and to refrain from contacting you regarding your debt. This is referred to as the automatic stay.
If a creditor does contact you, it will usually be due to the fact that they haven’t received notice of your bankruptcy petition being filed. In this case, you just need to give them your case number and a contact number for your bankruptcy attorney.
Your Repayment Plan
Under Chapter 13, you will be required to present a plan to pay off your creditors over a specified length of time, typically 3 – 5 years. You must propose a plan to make a series of monthly payments that will be distributed amongst creditors by your trustee. The first of these payments will be due within 30 days after filing.
Your trustee will often arrange for these payments to be deducted from your paycheck. However, you should personally send the payments to your trustee until you are sure that the amount is being deducted properly from your wages.
Often, if you have a mortgage, you will also be responsible for continuing your mortgage payments. In some cases, however, the trustee will also pay your mortgage payments.
The 341 Meeting
Approximately 30 days after filing your Chapter 13 bankruptcy petition, you will be required to attend a meeting of your creditors, the 341 meeting. To this meeting you will need to bring valid identification, your social security card and your recent pay stubs. In addition, your attorney will advise you of the need to bring any other documents necessary to have your bankruptcy approved.
While all of your creditors will be invited to attend the 341 meeting, the meeting will likely only be attended by you, your bankruptcy lawyer and the trustee.
During your 341 meeting, your trustee will ask you questions regarding your plan to repay your debt and perhaps ask to see documents in support of the information you have provided. Afterwards, he will either accept your plan or recommend that some changes be made.
The Confirmation Hearing
Once the 341 meeting has concluded, the bankruptcy court will be ready to confirm your repayment plan. A confirmation hearing will typically occur about one month after the 341 meeting, and it is important that you are current with all of your bankruptcy obligations by that time.
If the court chooses not to confirm your repayment plan, more changes will be necessary. It is important to note that a creditor can oppose your plan at anytime until your confirmation hearing is concluded. However, once it is confirmed, your creditors will be obliged to follow your repayment plan.
After your confirmation hearing, all that remains for you to do is to maintain your proposed payments for the next three to five years. After that time, you will receive a discharge of any unsecured debt not covered by your Chapter 13 repayment plan.
For more detailed information on what you can expect during Chapter 13 bankruptcy in Oklahoma, contact an experienced Oklahoma bankruptcy attorney.
Free Chapter 13 Bankruptcy Consultation
For a free consultation with one of our bankruptcy lawyers in Tulsa, call (888) Debt-Line or (918) 878-0010 today. With a ten (10) minute, free phone consultation with one of Debt Line’s Tulsa bankruptcy lawyers, you can know what you qualify for and the costs and procedures involved.