​STEP 1.  Credit Counseling.  You must complete an approved credit counseling course within 180 days prior to filing.  This course can be taken on-line or over the telephone and generally costs an average of $25.

 

STEP 2.  Filing the Bankruptcy Petition Package.  You will file a Chapter 13 Bankruptcy petition together with documents identifying your debts, your assets, your income and your expenses.  You will also be required to file a Statement of Financial Affairs which lists several questions you must answer regarding your finances and status.  If you are married, you may file without your spouse but you will still be required to list your spouse’s income as well as any contributions from household members.

 

STEP 3.  Automatic Stay.  Once you file your Chapter 13 Bankruptcy petition, the Clerk will send out an order notifying your listed creditors of an automatic stay which prohibits most collection actions, including lawsuits, foreclosures and foreclosure sales, wage garnishments, telephone calls or even letters attempting to collect, against your property or you. (11 USC § 362).  Your co-debtors are also protected by the automatic stay. (11 U.S.C. § 1301(a)).

 

STEP 4.  Filing the Chapter 13 Payment Plan.  Within 14 days after you have filed your Chapter 13 Bankruptcy petition, you must file a payment plan.  You may request the court’s approval of an extension to file the Chapter 13 Bankruptcy plan.  If your monthly household income is less than the Florida median for a family of your size, than the plan must be over a period of 3 years.  If your monthly household income is more than the Florida median for a family of your size, the plan period must be 5 years. (11 USC § 1325(d)).  In this case, the plan may be less than 5 years if all of your unsecured debt is paid of the plan period. 

 

Priority claims, such as child support arrears and tax debts, must be paid in full unless the creditor agrees otherwise, unless all “disposable income” has been applied to a 5 year plan. (11 USC § 1322(a)).  You must pay back arrears on claims secured by collateral/property you wish to keep as well as explain how you intend to address the regular payments due.  Repayment of unsecured claims such as credit cards and medical bills may be negotiated but must otherwise be repaid in accordance with your disposable income as determined by the Means Test and your assets.  Unsecured creditors should receive at least as much as they would had received if you filed Chapter 7.  Creditors may file objections to your proposed Chapter 13 bankruptcy plan withing 30 days have the 341 Creditor’s Meeting is held.

 

STEP 5.  Begin Plan Payments.  You must start making payments to the bankruptcy trustee in accordance with your plan within 30 days after filing your Chapter 13 Bankruptcy petition.  You must make the payments even if your plan has not yet been approved by the court. (11 USC § 1326(a)(1)).

 

STEP 6.  341 Creditor's Meeting. The order the clerk sends out when you file your Chapter 13 Bankruptcy case also schedules a 341 Creditor’s Meeting to occur within 40 days.  At least a week prior to the 341 Creditor’s Meeting, you will be required to provide financial documents to the bankruptcy trustee including tax returns, pay stubs, bank statements and documentation regarding your other assets.

 

STEP 7.  Confirmation Hearing.  A court hearing to review your proposed Chapter 13 Bankruptcy plan will occur within 45 days of the 341 Creditor’s Meeting.  Three things can occur:  1)  The court will approve your plan;  2)  The court will not approve your plan and will give you an opportunity to amend the plan (11 USC § 1323); or 3) The court will dismiss your case.  You will have the opportunity to convert your case to a Chapter 7 Bankruptcy if this occurs. (11 U.S.C. § 1307(a)).  If the court dismisses your case, the trustee will return most of the funds paid by you which have not yet been disbursed.  (11 USC § 1326(1)(2)).  Creditors who have not filed a proof of claim with the court within the time ordered by the court (usually within 70 days of the clerk’s initial order scheduling the 341 Creditor’s meeting which is sent when you file your Chapter 13 Bankruptcy petition.)

 

STEP 8.  Debtor Education Course.  After you file your Chapter 13 Bankruptcy petition but before you make your last plan payment, you must take a court approved financial management course.  Like the pre-filing credit counseling course, this course can be taken on-line or over the telephone and generally costs an average of $25.  You can usually take the course from the same entity that provided your pre-filing course.

 

STEP 9.  Completion of Plan & Discharge.  Once you have completed the court confirmed plan by making all your payments timely and have also taken the debtor education course, you will receive a discharge of all dischargeable debts.   You will continue to make payments toward long term obligations such as your mortgage, child support, alimony and some taxes.