Johnstown Bankruptcy Attorneys

In Johnstown, Chapter 13 bankruptcy, also known as a “wage earner’s plan,” is a type of personal bankruptcy. It allows individuals with a regular income to construct a repayment plan to repay their debts in three to five years. Opposed to Chapter 7, which involves the liquidation of assets to pay off debts, Chapter 13 bankruptcy focuses on establishing a manageable repayment plan based on your income and expenses.

Here is a general overview of the Chapter 13 bankruptcy process in Johnstown:

1. Credit counseling: Before filing for Chapter 13 bankruptcy, debtors must complete credit counseling with an agency that has been approved. This counseling seeks to provide financial education and evaluate bankruptcy alternatives. For a list of approved vendors, please contact our Johnstown office.
2. Filing the petition: The debtor must file a petition with the Western District of Pennsylvania Bankruptcy Court to initiate the Chapter 13 bankruptcy process. The petition includes comprehensive financial information, including income, expenses, assets, and liabilities.
3. Chapter 13 repayment plan: Our experienced Johnstown bankruptcy attorneys are responsible for developing a repayment plan outlining how you will repay your debts over the next three to five years. The plan must demonstrate that you have sufficient income to pay for the plan and that the debtor can pay his or her regular monthly living expenses in addition to making monthly payments to creditors.
4. Meeting of creditors: After filing the petition, you and Your Pittsburgh Bankruptcy Attorney will attend a meeting of creditors, also known as a 341 meeting (this will be conducted via Zoom). The meeting gives creditors the opportunity to inquire about your financial situation and proposed repayment plan. Also presiding over the meeting is the bankruptcy trustee.
5. Confirmation hearing: A confirmation hearing is scheduled during which the bankruptcy court will evaluate and approve the proposed repayment plan. Your bankruptcy attorney is present at this hearing. Creditors may object to the plan if they believe it does not comply with the bankruptcy code’s requirements. If the court approves the Chapter 13 bankruptcy plan, the court-approved plan becomes the required repayment for all creditors included in the Plan.
6. Plan implementation: Once the repayment plan is confirmed, the debtor makes regular payments to the Chapter 13 Bankruptcy Trustee, who then distributes the funds to creditors in accordance with the terms of the plan. The debtor must adhere to the repayment schedule and make payments on time for the duration of the repayment schedule. Our team of experienced bankruptcy attorneys can help you set up automatic payments.
7. Completion and discharge: If you successfully complete the repayment plan, you will be discharged from your outstanding debts, provided you have completed all responsibilities and followed the conditions of the bankruptcy court and plan. The discharge relieves the debtor of personal accountability for any discharged debts.

It is essential to note that the Chapter 13 bankruptcy process can be complicated and may vary based on the specifics of each case. To ensure an accurate understanding of the process and to effectively navigate it, speaking with one of our Johnstown bankruptcy lawyers is strongly advised. In Johnstown, we provide complimentary consultations and payment plans for all bankruptcy and debt relief services.