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How Long Does It Take to Complete Chapter 13 Bankruptcy in Las Vegas?
A Chapter 13 bankruptcy case in Las Vegas typically takes 3 to 5 years, depending on the debtor's income and the repayment plan's structure. For example, a filer earning below the Nevada median income may complete their plan in three years, while someone earning above the median may be making payments for five years.
A quick overview of a typical Chapter 13 bankruptcy would look something like:
- Before Filing: Gathering necessary documents and completing the required credit counseling.
- Day 0: File a Chapter 13 bankruptcy petition
- Within 30 Days: Start making payments on the Chapter 13 plan
- 1–2 Months After Filing the Bankruptcy Petition: Attend a 341 meeting of creditors
- After the Meeting: Receive court confirmation of your repayment plan
- Years 1 to 5: Making payments on your plan. This stage could be less than 3 years but not more than 5 years.
- After Plan: Receive a bankruptcy discharge if eligible.
To ensure Chapter 13 bankruptcy is the best choice for you, schedule a free consultation with a Chapter 13 bankruptcy lawyer at Rodney Okano Law Offices by calling (702) 566-3600.
What Determines the Length of a Chapter 13 Repayment Plan?
The length of your Chapter 13 repayment plan depends on several factors, but the most significant is your income relative to Nevada's median income.
For filers with incomes below the state median, your plan will typically last three years. For those with incomes above the median, your plan will typically last five years.
A Chapter 13 repayment period can be less than 3 years, especially if you make regular payments and pay all your unsecured debts in full. However, a Chapter 13 plan cannot be more than 5 years under 11 U.S.C. § 1322(d)(1).
Three-Year Plans for Below-Median Income Filers
Below-median-income filers qualify for a three-year plan under the Bankruptcy Code 11 U.S.C. § 1322(d)(2). This repayment period is typically the maximum length of time the court will allow for your plan unless an extension for cause is granted.
Five-Year Plans for Above-Median Income Filers
Those with incomes above the median typically must commit to a five-year plan. However, some courts allow above-median filers to propose a shorter plan if they have no disposable income or if all allowed claims can be paid in full.
Current Nevada Median Income
Median income amounts that are used in bankruptcies are set by the U.S. Census Bureau. Currently in Nevada, the median income based on household size is:
Household Size | Median Income Amount |
|---|---|
1 | $72,222 |
2 | $87,914 |
3 | $101,638 |
4 | $114,110 |
To calculate household sizes larger than 4, add $11,000 for each individual past 4.
How Long Does Each Stage of the Chapter 13 Process Take?
A Chapter 13 case includes several milestones, from the start of your repayment plan payments to the initial meeting of creditors, the plan confirmation hearing, and final payment completion. Each step has a specific timeframe, and understanding them is crucial for tracking your case.
Timeline | Event | Bankruptcy Code |
|---|---|---|
Within 180 days before filing | Complete an approved credit counseling course. | 11 U.S.C. § 109(h) |
Within 14 days after filing | Submit required financial schedules and a proposed repayment plan. | Rule 1007 & Rule 3015 |
Within 30 days after filing | Begin making proposed Chapter 13 plan payments. | 11 U.S.C. § 1326(a)(1) |
21-50 days after filing | Attend the meeting of creditors. | Rule 2003(a) |
Around 70 days after filing | Non-governmental creditors must file proofs of claim to participate in distributions | Rule 3002(c) |
Around 180 days after filing | Governmental entities must file proofs of claim | 11 U.S.C. § 502(b)(9) |
Payment Plan: 3 years | Typical length of a Chapter 13 payment plan for a filer under the median income. | 11 U.S.C. § 1325(b)(4) |
Payment Plan: 5 years | Typical length of a Chapter 13 payment plan for a filer above the median income. | 11 U.S.C. § 1325(b)(4) |
Maximum 5 Years | Chapter 13 plans are generally limited to 5 years. | 11 U.S.C. § 1322(d)(1) |
Before discharge | Complete an approved financial management course. | 11 U.S.C. § 1328(g) |
That table provides a general look at what a Chapter 13 bankruptcy case is. Individual cases can look very different due to exemptions and other unique circumstances. To get a full Chapter 13 timeline for your specific situation, schedule a free consultation with our Las Vegas bankruptcy lawyers today.
What Happens in the First Few Weeks After Filing?
Once you file your bankruptcy petition, the automatic stay takes effect under 11 U.S.C. § 362(a), meaning creditors cannot call you, sue you, garnish your wages, or seize property. The court also assigns a trustee to manage your case. Within the first two weeks, you'll likely receive court notices and must provide additional documents, such as financial statements and tax returns.
You also need to propose a plan and start making plan payments within 30 days, even before the court officially approves your plan.
The Automatic Stay and Immediate Creditor Protection
The automatic stay goes into effect immediately when you file for bankruptcy. The day you file, the moment the paperwork is filed, the automatic stay is in effect. This means most collection actions have to stop immediately.
Proposing Your Plan and Starting Payments
In a Chapter 13 case, you typically must submit a proposed repayment plan within 14 days of filing the petition. After submitting the petition and proposing the plan, the filer typically must start making payments within 30 days of filing, even if the Nevada bankruptcy court doesn't confirm the proposed plan.
If the court doesn't accept your plan, the bankruptcy trustee assigned to your case will typically return the payments you already made, minus any administrative expenses.
While there is a risk your plan won't be accepted, you should not wait to start making payments. To increase the chances of your plan being accepted, let our bankruptcy lawyers work with you to create the strongest plan.
Can You Finish a Chapter 13 Plan Early?
A Chapter 13 plan can typically be completed early in two situations: when creditors receive 100% of allowed claims or when a hardship discharge or another exception applies.
However, a common income increase, such as a bonus or a salary raise, will not shorten your plan enough to allow you to walk away. It will likely extend your plan by increasing the total amount owed.
In most cases, the best financial option for a Chapter 13 debtor is to follow the court-approved plan as originally filed, rather than trying to pay off the case early.
What Happens After You Complete Your Chapter 13 Repayment Plan?
Once you complete all payments required in your Chapter 13 plan, the court enters a discharge order, which wipes out most remaining debt. However, you must stay on top of your payments and follow court orders to avoid losing the case.
Also, under 11 U.S.C. § 1328(f)(2), you generally must wait 2 years from your filing date to file another Chapter 13.
Frequently Asked Questions About the Length of Chapter 13 Bankruptcy
What Factors Besides Median Income Can Extend the Length of a Chapter 13 Bankruptcy Case in Las Vegas?
Most Chapter 13 cases close after all plan payments are complete and the required court paperwork is filed, but several factors can delay closure. A contested creditor claim requires an adversary proceeding that can potentially add months to your case.
You may also need to file a final accounting after your last payment, and you typically must file a certificate confirming current domestic support is applicable before discharge.
Can You Modify a Chapter 13 Repayment Plan After Confirmation?
Yes, under 11 U.S.C. § 1329(a), you can modify your Chapter 13 plan after it's been confirmed. If your financial situation changes, you can ask the court to adjust your repayment terms, such as lowering your monthly payments or extending the repayment period.
The court may grant your request if it approves the modified plan, or deny it if you are not making enough payments or if the modified plan is not consistent with the original plan's confirmation rules. Before you file a motion to modify, you may want to consult with a Las Vegas bankruptcy attorney.
Contact Us Today
The Rodney Okano Law Offices is a Las Vegas Law Firm that specializes in representing those injured in motor vehicle accidents and those looking to become debt-free through Chapter 7 or Chapter 13 bankruptcy. Our firm has been in Nevada for over 20 years and has helped thousands with their car accident claims and bankruptcy filings. We offer a free attorney consultation, which can be set up by calling or sending an email inquiry.
