What happens after a Chapter 13 is filed?
After a Chapter 13 is filed, the court issues an automatic stay. The automatic stay prevents creditors from collecting any debts without approval of the bankruptcy court. The debtor then proposes a repayment plan to repay some or all of his or her unsecured debt. Once this plan is approved by the court, the debtor makes monthly payments to the Trustee who pays all creditors entitled to payment under the repayment plan. Repayment plans typically last three to five years.
