Taking a major step to address your outstanding debt liabilities can feel overwhelming. Of course, it can also feel as if you are making progress to get out from under these financial burdens, which could lead to a less stressful life. If you qualify for Chapter 13 bankruptcy and feel that it could work in your best interests to follow this path, you may want to understand specific aspects of the process.
Because Chapter 13 involves repaying your debts over time through an approved repayment plan, you must have a feasible plan to work with. Rather than the court telling you what to do in this regard, you create a proposal and present your plan to the court in hopes that it gains approval. This part of the process is known as confirmation.
Before your bankruptcy case can go any further, your proposed repayment plan must gain confirmation. You may feel that you do not have the qualifications to create such a plan, but fortunately, you can obtain any professional assistance you see fit. In particular, your plan should include the amount of debt you plan to pay each creditor, which creditors will obtain payment and when you will make those payments. You will have somewhere in the range of 60 days after filing your bankruptcy petition to create your plan.
The reason for this 60-day window relates to the fact that many changes can take place after a bankruptcy filing. Creditors may come forward with more claims, and you will need to gather and present any necessary information, which can take time.
You will receive a court date specifically for presenting your proposal to the court and hopefully having the court confirm that plan. Once the judge issues an order of confirmation, your bankruptcy process can truly get underway. While confirmation is a major part of your proceedings, you must ensure that you stick to your plan in order for the rest of your process to go as smoothly as possible.
If you feel out of sorts and unprepared to create and present a proposed repayment plan to the court, you do not have to panic. You could seek advice and assistance from a bankruptcy attorney who can explain the best options for your case and for working toward the most feasible repayment plan for your situation.