If you are filing Chapter 13 bankruptcy in Virginia, you may be feeling a little stressed out about it. That is perfectly natural. This is a major decision and a huge process to go through. Understanding how the process works can make things a little easier on you. Luckily, the U.S. Courts are fairly transparent about how Chapter 13 works and what you can expect during the process.
It all begins when you file your petition with the court. Remember, bankruptcy cases are only handled in the bankruptcy courts, not at your local courthouse. Your petition contains all your personal information and information about your debts. The court uses this to make decisions in your case.
You will have a trustee assigned to your case who helps manage your debts throughout the process. This person also ensures you follow your Chapter 13 plan for repayment and pays your creditors under that plan.
There will be a meeting of the creditors where all the details of your debts are ironed out. The court will then hold a hearing to create your repayment plan. You then must finalize and submit the plan with the court. The court will reject or confirm your plan.
If your plan is confirmed, you will then enter the next phase, which is paying back your creditors based on the repayment plan. Your bankruptcy is not discharged until all the terms of the payment plan are met, but other factors can affect the decision to discharge a case. This information is for education and is not legal advice.