How Long Does it Take to File Chapter 13 Bankruptcy?

When facing overwhelming debt and considering Chapter 13 bankruptcy, it can be challenging to understand the bankruptcy process and to see a clear path forward—a path without being under the gun of creditors, wage garnishment, and looming foreclosure.

But exactly how long does it take to file Chapter 13 bankruptcy? How long is the Chapter 13 process from filing to discharge?

This article aims to answer the question “How long does it take to file Chapter 13 bankruptcy?” from filing to discharge—so you can get a sense of whether filing Chapter 13 is right for your unique situation.

What is Chapter 13 Bankruptcy?

Chapter 13—also called “wage earner’s bankruptcy”—caters to individuals who are struggling with debt but have a somewhat steady income. This chapter lets you hold onto your assets while repaying your debt over, typically, 3-5 years.

Chapter 13 is ideal if you have a somewhat reliable income source and want to protect valuable non-exempt property—such as your home—from foreclosure.

Who Should Consider Chapter 13?

You might find Chapter 13 bankruptcy helpful if you’re in a financial bind but have a regular paycheck. It’s particularly useful for homeowners at risk of losing their houses. If you’re juggling overwhelming debt but wish to keep your assets, this could be your lifeline.

Chapter 13 may suit you if:

• You’re behind on mortgage payments and facing foreclosure.
• You have a steady income but struggle to stay on top of your bills.
• You own property or assets you want to protect that would be at risk in a Chapter 7.
• You’re facing collection attempts, like creditor calls.
• Your wages are being garnished.
• You’re willing to commit to a 3-5 year repayment plan.

If you’re unsure whether Chapter 13 is right for your situation, consult a bankruptcy attorney to help clarify your options.

How Long Does it Take to File Chapter 13 Bankruptcy: The Filing Process

The Chapter 13 bankruptcy process isn’t a quick fix, though you will receive relief as soon as you file due to the automatic stay. However, Chapter 13 can provide long-term relief. From start to finish—you’re looking at a timeline of several months to get your case filed and approved, followed by a 3-5 year repayment plan.

Step-by-Step Process

Step 1: Prepare documents, petition, and plan

You’ll need to gather financial documents, including income statements, tax returns, and a list of your debts and assets. This step doesn’t typically take long unless you need to request copies of your credit card applications.

Step 2: Develop a repayment plan

Working with your Chapter 13 bankruptcy attorney, you’ll devise a plan to repay your debts over 3-5 years. Depending on the complexity of your case, this can take several months but can be done more quickly in many cases.

Step 3: File your petition and proposed plan

Once you file, an automatic stay goes into effect. The automatic stay stops most collection activities, such as wage garnishments and foreclosure proceedings. Your petition includes details about your finances, debts, and proposed repayment plan.

Step 4: Make payments over 3-5 years

A month after your case is filed, your Chapter 13 plan payments are due to the Chapter 13 trustee, and then due every month for the rest of your plan. 

Step 5: Attend the 341 meeting of creditors

About a month after filing, you’ll attend a 341 meeting with your Chapter 13 trustee and any creditors who choose to attend. They’ll ask questions about your financial situation and repayment plan. If you have an attorney, they will be there to protect your interests.

Step 6: Attend a confirmation hearing

Usually, you won’t have to attend a confirmation hearing if you start making your payments. But sometimes, the Chapter 13 trustee and your attorney will need to review your plan—about three months after the 341 meeting. The trustee and your attorney will make amendments as necessary, and hopefully come up with a plan that the trustee recommends to a judge.

Step 7: Plan confirmed

Confirmation is a major milestone, as it means you have resolved any objections to your plan and your plan meets the requirements of the bankruptcy code. Your plan is now binding on your creditors.

Step 8: Finish the confirmation process

During your repayment period, you will need to stay current with your plan payments and fulfill any other obligations outlined in your plan. This might include submitting annual tax returns or reporting significant changes in your income. If you encounter difficulties, you can request modifications to your plan—but these must be approved by the Court.

Step 9: Complete the confirmed Chapter 13 plan

As you near the end of your repayment period, you will need to make sure all requirements are met. This includes making all required payments. After you complete all the payments in your plan, the court will likely order a debt discharge wiping out the remaining balance of your qualifying debts.

Recap: How Long Does it Take to File Chapter 13 Bankruptcy From Start to Finish?

• A few weeks to a few months to gather and submit documents, and draft your petition, schedules, and plan.
• 30-40 after filing to attend your 341 meeting.
• Typically 3-6 months after filing to have your plan confirmed.
• 3-5 years to repay your debts, complete the confirmed Chapter 13 plan, and obtain a discharge.

Factors Influencing the Timeline

When you’re wondering “How long does it take to file  Chapter 13 bankruptcy in Maryland?”  keep in mind that several factors can affect the process:

• Complexity of finances: If you have numerous creditors or complicated assets, it may take longer to prepare your petition and plan.
• Court schedules: Local court backlogs can stretch the time between filing and your confirmation hearing.
• Income changes: A new job or sudden expenses might require modifying your plan, potentially extending the process.
• Payment consistency: Missing payments could lead to dismissal of your case or conversion to Chapter 7 bankruptcy.
• Unexpected windfalls: A job promotion or inheritance might allow you to complete your plan ahead of schedule.

How an Experienced Chapter 13 Attorney Can Help

An experienced bankruptcy attorney is your guide through the process of Chapter 13—from filing to plan confirmation to completion of the repayment plan. They’ll represent you in court hearings and negotiate with your creditors.

With their experience, you are more likely to have your plan confirmed. Your lawyer will also keep you informed about your rights and obligations every step of the way.

Address Your Debts Head-On With Steiner Law Group

An experienced bankruptcy lawyer can save you time, stress, and potentially money in the long run. Don’t go through this difficult process alone. Contact Steiner Law Group today or call us at (410) 670-7060.