Chapter 13 Bankruptcy Explained Step-by-Step (2023 UPDATE)

TL;DR

This video explains the Chapter 13 bankruptcy process, highlighting the reasons why someone would choose Chapter 13 over Chapter 7 and outlining the steps involved.

Transcript

hey everybody John skiba here from the consumer Warrior YouTube channel and in this video I'm going to take you step by step through the entire Chapter 13 Bankruptcy process but if this is your first time here to my YouTube Channel please click subscribe check on that Bell that will be notified each and every day when I put out a new video that'll ... Read More

Key Insights

• 😨 Chapter 13 bankruptcy is chosen when the means test or the desire to keep assets like homes or cars makes Chapter 7 infeasible.
• 🌱 It involves creating a Chapter 13 plan, which outlines monthly payments to creditors.
• 🌱 The process includes a meeting of creditors, making monthly plan payments, addressing objections from creditors, and obtaining a discharge order.

Questions & Answers

Q: Why would someone choose Chapter 13 bankruptcy over Chapter 7?

Chapter 13 may be necessary if the means test determines a person is ineligible for Chapter 7 or if they want to retain assets like their home or car. It allows for a structured repayment plan.

Q: How is the Chapter 13 plan payment calculated?

The plan payment is determined by looking at your income, monthly expenses, and non-exempt assets. Generally, any amount left over after paying regular bills will go towards your creditors.

Q: What happens during the meeting of creditors?

The meeting of creditors, also known as the 341 meeting, is a brief meeting where your identity is verified, and you are asked if the information you provided is accurate. It is now conducted virtually.

Q: Can a Chapter 13 bankruptcy be converted to Chapter 7?

Yes, if circumstances change significantly, such as a decrease in income, it is possible to convert a Chapter 13 to a Chapter 7 bankruptcy. However, this decision should be discussed with an attorney.

Summary & Key Takeaways

• Chapter 13 bankruptcy is chosen when the means test determines that a person is ineligible for Chapter 7 bankruptcy or when they want to keep their home or car.

• The process involves preparing a petition, schedules, and a Chapter 13 plan, which details a monthly payment to be made to the bankruptcy trustee.

• After filing, there is a meeting of creditors, followed by the requirement to make monthly plan payments and address any objections from creditors. The final step is the discharge order.