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Filing For Chapter 13: What Happens After The Petition Is Submitted?

The decision to file bankruptcy is never easy. Many people try every other solution they can find before taking this step. After consulting with an attorney and choosing to file a Chapter 13 in Valdosta, what happens next? Here are some changes that you will see quickly.

The Collection Calls Stop

Once your attorney filed the petition and a proposed payment plan, the court notifies your creditors of the action. While your petition and payment plan is under consideration, no creditor is allowed to continue collection proceedings. That means all collection calls, emails, and other forms of communication will stop.

If you do have a creditor contact you for the purpose of collecting a debt, state you have filed a Chapter 13 petition. That should end the conversation immediately. Should the creditor continue, collect the contact information and pass it on to your legal counsel. The court will take it from there.

You No Longer Pay on Those Debts

From the moment you file the petition, you do not make any payments to your creditors. What you will do is make what’s sometimes called a good-faith payment to the court. The amount of that payment is based on the proposed payment plan that your legal counsel submitted along with the bankruptcy petition for a Chapter 13 in Valdosta. Typically, the court must receive that payment within 30 days after the petition is filed.

You Take Court-Ordered Debtor Education Classes

The court will require that you enroll in and successfully complete approved debtor education classes while awaiting a decision about your petition for Chapter 13 in Valdosta. They are designed to equip debtors with skills that make it possible to manage financial matters in the future. Today, debtors can take approved classes online and know that proof of completion is supplied to the court trustee and the representing attorney.

Are you wondering if personal bankruptcy is the only practical solution? Call us today and schedule a consultation. Rely on our experience with personal bankruptcy options and we’ll help you find out what sort of options are open to you. Once you decide, we’ll begin the process and work to help you achieve the best possible outcome. Go to Charles Farrell Jr. LLC at CharlesFarrellLaw.com.

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