Key Steps in Chapter 13 Bankruptcy You Should Know

Navigating the Chapter 13 bankruptcy process can be complex, and dealing with the courts can be intimidating. But by understanding the process, such as the meeting of creditors, the confirmation hearing, and the role of the bankruptcy trustee, you will feel more confident and ease your stress. In this blog post, I will guide you through each step of the Chapter 13 bankruptcy process, from filing the petition to the final discharge.

Key Points:

• When a bankruptcy petition is filed, whether Chapter 7 or Chapter 13, the automatic stay prevents most collection activities from moving forward, providing temporary relief from creditors.
• The automatic stay also applies to lawsuits filed by creditors.
• At the 341 Meeting of Creditors, the bankruptcy trustee reviews the petition and asks questions about your financial situation.
• Even if the meeting of creditors is scheduled more than 30 days after the bankruptcy petition was filed, the first plan payment is required even if the plan hasn’t been approved.
• At the Confirmation Hearing, the bankruptcy judge will determine if your repayment plan is feasible and fair. Several Confirmation Hearings are normal.
• Once your bankruptcy plan has been confirmed, you will make regular payments for 3-5 years. Plan payments may be modified in the future if there are changes in your financial situation.

Automatic Stay and Chapter 13 Bankruptcy

The clock starts to tick once the Chapter 13 bankruptcy petition is filed. When you file for Chapter 13 bankruptcy, the automatic stay immediately halts most collection actions, including lawsuits, wage garnishments, and foreclosures. This provides you with temporary relief and the opportunity to reorganize your debts.

The 341 Meeting of Creditors

Both Chapter 7 and Chapter 13 bankruptcy have a hearing scheduled with the trustee, known as the creditors’ meeting or the 341 meeting of creditors. At that brief hearing, the trustee will review the petition. At the 341 meeting, the trustee will ask you questions about your financial situation and the information in your bankruptcy petition. Creditors may also attend and ask questions, although this is rare.

• The 341 Meeting of Creditors: It’s Not What You Think

Note that the 341 hearing might be scheduled more than 30 days after the petition was filed. However, your first plan payment is due within thirty days. So, it’s essential that by the time you attend the meeting of creditors, you are timely with your payment. Otherwise, the trustee will recommend the dismissal of your case.

The Confirmation Hearing (Only in Chapter 13 Bankruptcy)

After the creditor’s meeting, the Confirmation Hearing is scheduled. Here, you are trying to get the bankruptcy payment plan approved. However, having multiple Confirmation Hearings before having your plan confirmed is common. The Confirmation Hearing is crucial as it determines whether your repayment plan is approved. It’s common to have numerous hearings if objections from creditors or if adjustments to the plan are needed.

• Understanding Chapter 13 Bankruptcy: Confirmation Hearing and Key Points

For example, creditors could object for various reasons. One common reason is that the debt totals listed in the petition are incorrect. If so, submitting a new plan is required. Sometimes, you don’t need to attend the Confirmation Hearing, so confirm in advance with your bankruptcy attorney.

Motion Calendar

There may also be several hearings due to various motions that were filed, but this varies per case. For example, a hearing would be required if a motion were filed to reduce or eliminate a second mortgage. You can learn more about lien stripping via the link below.

• Reduce Your Mortgage with Chapter 13 Bankruptcy

Another common motion in Chapter 13 bankruptcies is the motor vehicle cramdown. This is when the balance on a car loan is reduced to the car’s value. To learn more about the Chapter 13 cramdown, click the link below.

• Maximize Savings with Chapter 13 Cramdown

Bankruptcy Plan Confirmation

Once the plan is approved, you may not have to attend court again. Your plan payments will continue for three to five years until the last payment. At that point, the bankruptcy judge will sign an Order of Discharge. However, there may be changes to your plan. For example, the bankruptcy trustee will request new, updated financial information every year. So, if your income increased, this would require filing an amended bankruptcy plan.

Conclusion

Understanding the Chapter 13 bankruptcy timeline can help you navigate the process more confidently. Always consult your bankruptcy attorney to ensure you meet all requirements and deadlines. If not, the bankruptcy trustee will seek to have your case dismissed.

A dismissal order by the bankruptcy judge lasts for six months. This is known as the prejudice period, which means that for six months, bankruptcy cannot be refiled. However, a motion can be filed to shorten the prejudice period. But, this will result in additional attorney’s fees, so avoiding dismissals is best.

You can learn more about filing for bankruptcy and the bankruptcy petition via this link. Information on the bankruptcy court system, contact information for trustees, and your state’s exemptions can be found here. The federal bankruptcy exemptions are listed here. The latest version of the 341 Meeting of the Creditors can be found here.

Colleges and universities can purchase my bankruptcy law textbook directly from Routledge Publishing. For paralegals and students buying single copies, you can do so via Amazon Books. To access my YouTube channel, click this link.

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Please note that the information on this site does not constitute legal advice and should be considered for informational purposes only.

Updated on April 25, 2025.

Updated on August 31, 2025.