The coronavirus epidemic has caused many Americans to struggle financially. An estimated 205 million people face the possibility of having their utilities disconnected. Many more may also be at risk of losing their cars and homes. Many Americans are unable to pay their bills due to being laid off or having their hours reduced. It will take some time for Americans to recover from the coronavirus shutdowns, but they do have other options. One option is to file for bankruptcy. You can get your finances back on track by filing for Chapter 13 bankruptcy. What happens when you have paid off your Chapter 13 bankruptcy?
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The Chapter 13 Bankruptcy Process
If you choose to file for Chapter 13 bankruptcy, the court allows you to keep some of your assets in exchange for a promise to pay back a portion of your debts. In a Chapter 13 bankruptcy, unlike a Chapter 7 where the debtor asks for a full discharge, you’ll be making an effort to pay back your debts slowly. You will have to make monthly payments to the trustee while your Chapter 13 bankruptcy process is ongoing.
You won’t be able to take on more debts without the trustee’s permission. It is a great help to those who are in a Chapter 13 bankruptcy process that they cannot add any new debt. You will be able to start over once your payments have been completed. Your trustee will review all your payments as you near the end of the Chapter 13 process.
Complete the Order Confirming Your Chapter 13 Case
After you’ve paid off your Chapter 13 debts, your bankruptcy court will hold one final hearing — the discharge hearing. You can ask your attorney to represent you at the hearing. The bankruptcy judge will go over all the details of your case. The judge will check to see if you’ve met all the requirements of your original bankruptcy judgment. The judge will discharge your Chapter 13 bankruptcy if none of your creditors object.
After your hearing, you should receive your final bankruptcy paperwork within 2 to 3 weeks. Keep all the paperwork you receive in your files. You may have to send copies of the paperwork to creditors still trying to collect on debts that were forgiven by the bankruptcy court. After your bankruptcy is discharged, creditors cannot continue to pursue unpaid debts. You can report any creditors who pursue you for violating federal laws.
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A Lawyers Help
You can ask your lawyer or the court to help you locate the “Order Confirming Chapter 13 Case” and ensure you’ve met all the requirements. You can ask them for help and they will provide any necessary materials to complete this final part of your bankruptcy. The court that is presiding over the case will send you a document titled “Certification for Chapter 13 Discharge” after you have filed your report with the bankruptcy trustee. You will be required to sign the document and return it to the court. Make sure you fill out all the required signature spaces and enter complete and accurate information.
You will then need to complete your second counseling class. Sign the certification, and then hand deliver or mail it directly to the nearest US bankruptcy court. The clerk will then file your certificate after receiving the form. Your discharge should arrive within 30 days. You will know when you receive your discharge that your bankruptcy has officially ended. The discharge concludes a Chapter 13 bankruptcy. You will need to complete your second financial education course as soon as you can. You can contact the company that provided your first course, or you can find another one.
Regaining Control of Your Finances
When debtors take back control of their finances, it is one of the most powerful parts of the bankruptcy procedure. You do not have complete control over your finances during the bankruptcy process. Your trustee will likely seize your federal and state tax refunds so that you can use them to pay off your debts. After the court has discharged your Chapter 13 bankruptcies, you will receive your tax returns yourself and can apply for credit cards and other loans. If you have other debts not discharged by the bankruptcy court, such as alimony, taxes, student loans, and child support, then you must continue paying them.
Contact a Chapter 13 Bankruptcy Lawyer today
We can assist you if you are contemplating a Chapter 13 bankruptcy and look forward to the day your debts will finally be discharged. Contact Bruner Wright office, we have a team of Lawyers who understand the difficulties faced by our clients when they are unable to pay their bills because of the coronavirus epidemic. We represent our clients through Chapter 13, Chapter 7, and Chapter 11 bankruptcy proceedings so that they can begin anew and take control of their financial future. Contact us to set up your free consultation if you’d like to know more about bankruptcy.
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