What happens in a chapter 13 bankruptcy?

  A Chapter 13 bankruptcy has some advantages over a Chapter 7 bankruptcy: 

You can discharge a few more types of debts (see the question on dischargeable debts  for more information) 

You can stop house foreclosures and catch up on back mortgage payments (or catch up on back car payments), 

You can pay some of your bankruptcy attorney fees after your bankruptcy has been filed, You can often keep property that is collateral for a debt by paying only the value of that collateral (plus interest), and 

You can keep your non-exempt property by paying the value of that property to the Trustee through your monthly payments. 

The basic procedure for a Chapter 13 bankruptcy is this: 

The proper bankruptcy papers are prepared by your attorney, signed by you, and filed in the Bankruptcy Court; 

The Court sends notice of your bankruptcy to your creditors; 

You begin making the required monthly payments to the Chapter 13 Trustee in Youngstown, Cleveland or Akron; 

You appear at a short Trustee’s hearing in Youngstown, Cleveland or Akron; 

The confirmation papers are signed by the Bankruptcy Judge and sent out if there are no complications; 

You make all the required monthly payments to the Chapter 13 Trustee; and 

After all the monthly payments are made, you receive your Discharge Order from the Bankruptcy Court, which certifies that you do not owe any of your dischargeable debts. Chapter 12 bankruptcy is for individuals or businesses primarily engaged in farming. 

The procedure for a Chapter 12 bankruptcy is quite similar to the Chapter 13 procedure set forth above.