Pittsburgh Bankruptcy Lawyers

Chapter 13 bankruptcy, also known as a “wage earner’s plan,” is a form of personal bankruptcy in Pittsburgh. It allows individuals with regular income to create a plan to repay all or a portion of their debts over a three to five-year period. Unlike Chapter 7 bankruptcy, which involves liquidating assets to pay off debts, Chapter 13 focuses on creating a manageable repayment plan based on your income and expenses.

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

1. Credit counseling: Before you can file for Chapter 13 bankruptcy, debtors must complete credit counseling from an approved agency. This counseling aims to provide financial education and evaluate alternatives to bankruptcy.  Contact our Pittsburgh Office for a list of approved providers.  
2. Filing the petition: To start the Chapter 13 bankruptcy process, the debtor must file a petition with the Western District of Pennsylvania Bankruptcy Court. The petition includes detailed financial information such as income, expenses, assets, and liabilities.
3. Chapter 13 repayment plan: Our experienced Pittsburgh Bankruptcy Lawyers are responsible for creating a repayment plan that outlines how you will repay the debts, you are required to repay, over the next three to five years. The plan must show you have the income sufficient to pay the plan and that the debtor can meet regular living expenses while making monthly payments to creditors.
4. Meeting of creditors: After filing the petition, Your Pittsburgh Bankruptcy Attorney and you will attend a meeting of creditors, also known as a 341 meeting (this is conducted by Zoom). The meeting provides an opportunity for creditors to ask questions about the your financial situation and proposed repayment plan. The bankruptcy trustee also presides over the meeting.
5. Confirmation hearing: A confirmation hearing is scheduled where the bankruptcy court reviews and approves the proposed repayment plan. Your bankruptcy attorney attends this hearing.  Creditors have an opportunity to object to the plan if they believe it does not meet the requirements of the bankruptcy code. If the Chapter 13 bankruptcy plan is approved by the court, the approved plan is now the required repayment for all creditors contained in the Plan.  
6. Plan implementation: Once the repayment plan is confirmed, the debtor makes regular payments to the Chapter 13 Bankruptcy Trustee, who distributes the funds to creditors as outlined in the plan. The debtor must adhere to the repayment plan and make timely payments for the duration of the plan.  Our experienced team of bankruptcy attorneys can assist you in setting up automatic payments.
7. Completion and discharge: After successfully completing the repayment plan, you will receive a discharge of remaining debts, as long as they you have fulfilled all obligations and met the requirements of the bankruptcy court and plan. The discharge releases the debtor from personal liability for all of your discharged debts.

It’s important to note that the Chapter 13 bankruptcy process can be complex and may vary depending on individual circumstance. Consulting with our Pittsburgh bankruptcy attorneys is highly recommended to ensure a proper understanding of the process and to navigate it successfully.  We offer free consultations and payment plans for all bankruptcy and debt relief services in Pittsburgh.