Will a Chapter 13 Filing Require that I Go to Court?

Yes, chapter 13 bankruptcy law requires people to attend court. The meeting of creditors is the court proceedings people are required to attend. If they don’t, their chapter 13 bankruptcy cases can automatically be dismissed. The meeting, under chapter 13 bankruptcy law, makes it mandatory for individuals to be present although their creditors can attend, but don’t have to. For instance, the creditors can show up to the meeting of the creditors to ask questions or challenge the people’s chapter 13 bankruptcy cases. Fortunately, the court proceeding typically doesn’t take hours, but minutes to complete.

Bankruptcy 13 Requires Individuals to Repay Creditors

Chapter 13, also called a wage earner’s bankruptcy, allows people to repay creditors using a court-approved repayment plan. The plan typically covers the amount and years of repayment. This means for 36 to 60 months individuals make a monthly payment bankruptcy trustees. The trustees then dispense the money to the creditors. Individuals must start making monthly payments as soon as the bankruptcy cases are filed.

Meeting of the Creditors Is Scheduled Approximately 45 Days after Cases Are Filed

Under the chapter 13 bankruptcy law, the meeting of the creditors is held even if the bankruptcy repayment plans don’t meet the standards for confirmation, according to the U.S. Bankruptcy Court. The meeting of the creditors consists of bankruptcy trustees, creditors, individuals and their bankruptcy lawyer.

Meeting of Creditors Involve Confirming or Denying the Repayment Plan

Usually, during the meeting, bankruptcy trustees review people’s chapter 13 paperwork. Sometimes the trustees will inquire about how people ended filing for bankruptcy and how they plan to avoid doing so in the future. Other times bankruptcy trustees may ask questions about some part of the repayment plan such as the monthly amount, number of months or employment. If the repayment plans are confirmed—which means the trustees agrees with the plan—then the money is distributed to creditors. However, if the repayment plans are not confirmed, people are allowed to appeal the decision.  

Obtain Legal Assistance When Attending Bankruptcy Court

No one should ever attend a meeting of creditors without the expertise or help of a bankruptcy lawyer. The lawyer will assist people in understanding the legal proceedings, objections to the repayment plans or any questions bankruptcy trustees have during the meeting of creditors.