Chapter 13 Bankruptcy Laws in Delaware
- To qualify for Chapter 13 bankruptcy in Delaware, you must have a steady source of income and be able to make regular payments on your debts. You must complete federal bankruptcy Form 22C to determine how much disposable income you have each month. Your repayment plan will last three or five years, depending on your income and family size. As of 2011, Chapter 13 debtors are limited to claiming $360,475 in unsecured debt and $1,081,400 in secured debt.
- Within the 180 days prior to filing, you must attend credit counseling with a court-approved agency. All Chapter 13 petitions must be filed with the district bankruptcy court located in Wilmington. When you file, you must pay the filing fees, unless you plan to ask for a waiver or pay them in installments. As of 2011, the Chapter 13 fee was $274. When you file, you must submit a list of your creditors, a list of debts and assets, a schedule of unexpired leases and contracts and a statement of financial affairs.
- Within 14 days of filing your petition, you must provide the court with a copy of your repayment plan. You must begin making payments to the bankruptcy trustee within 30 days of filing, regardless of whether the plan has been approved. The court will hold a confirmation hearing to evaluate your plan and determine whether it's fair to your creditors and adheres to federal bankruptcy guidelines. If your plan is rejected, you may resubmit a modified version or convert to a Chapter 7 case.
- The meeting of creditors is a fact-finding session designed to verify the information submitted in your initial petition. This meeting is typically scheduled within 20 to 50 days of your filing date. Failure to attend the meeting will result in an automatic dismissal of your case. The bankruptcy trustee presiding over your case will ask you questions about your debts, assets and income. Your creditors may also attend and ask questions or raise objections to your filing.
- Typically, you cannot receive a discharge of a Chapter 13 case until the repayment plan is completed. If you experience a severe financial hardship that prevents you from making plan payments, you may apply for a special early discharge. State law prohibits you from buying or selling any property or obtaining new credit without the court's consent prior to discharge.