Valued Contributor
Posts: 1,507
Registered: ‎07-24-2011
Re: What to expect next...

Well each state works differently in the discharge process.  Below is what was sent to me when they were starting to prepare for discharge.  From start to finish it was 4 months.  I know how you feel about needing a car because my car too had turned into a money pit.  So 4 days after I received my discharge I leased a car.  I could have done a purchase but I just chose to lease.  My scores were all above 700 so it was a pretty painless process.  But that's because during the last 2 years of my bk I started cleaning up my credit preparing for this day.  


I can tell you that I started to receive all kinds of mailers to get a new car almost immediately after my discharge posted on pacer.  So I'm sure you will be able to get a car but it might be at a very high interest rate.  But if you pay promptly you can refinance probably with one of your local CU's to get the rate down within a year.  But you have to do that in conjunction with cleaning your reports.  Anyway here is the letter I recieved so you know what the process is and again from the time I received this letter until my discharge it was about 4 months.


The is the letter that was sent was titled "Notice of Preparation for Discharge"

You have successfully arrived at the final phase of completing your chapter 13 plan. We are preparing your case for discharge. Over the next 20 weeks your case will go through several phases as you move toward receiving your discharge from chapter 13 bankruptcy.

Please be patient during these final phases. These final phases will seem long because you have made many sacrifices and are finally near your goal. The phases of your plan will go through over the next 20 weeks are required. It is our goal that your plan proceeds to discharge without interruption. If it is determined that an oversight has occurred, we could be required to reinstate your wage assignment. In the event issues should arise, you should contract your attorney immediately. 

Attached to this letter is an informative "Discharge Checklist" that summarizes the steps your case will proceed through over the next 20 weeks. Review the list carefully and take appropriate action where necessary. If you have questions, please contact your attorney:

Termination of Wage assignment: Letter sent to employer to stop wage deductions.

Final disbursement and possible refunds: Your case has been set to pay your creditors in full on the next scheduled monthly disbursement and any remaining funds will be sent to you.

Attorney fee orders received prior to final disbursement:Your attorney may review your file to determine if there are any other attorney fees outstanding and due. In the event that we receive an order allowing attorney fees prior to the final disbursements, we are obligated to pay the attorney fees. This could interfere with the final disbursement or any refund that we amy anticipate. If your wage assignment has already been terminated by your employer, you will have to remit the additional payments to this office by money order so your case can proceed to discharge. 

Attorney fee orders received after final disbursement: If we receive an order for attorney fees after the final disbursement, your attorney will probably forward the order to you to pay the fees directly.

Mortgage payments: You are now responsible for making your own mortgage payments again. It is imperative that you contact your mortgage company immediately to determine your due date, monthly payment about.

Issued Checks: Once we have completed all disbursements on your case, your case is monitored monthly to determine if all issued checks on your case are cashed. Creditors have 90 days to cash checks. Your case will be monitored monthly closely to determine when all issued checks have been cashed. If checks are not cashed within 90 days or are returned or reissued for any reason, this could extend the time allowed to cash checks.

Creditors that cannot be located (unclaimed funds): If there is a creditor who filed a valid claim and we issued a check that is returned because the creditor cannot be located, these funds are required to be turned over to the Bankruptcy court as unclaimed funds.

Final Report: Once we determine that all issued checks have been cashed, we submit a final report to the court. You will receive a copy of this report. Please be advised that your creditors will also receive a copy of this report and have the right to object to your discharge within 30 days of receipt of this Final Report. 

Certifications for Dsicharge-Domestic Support obligation and personal financial management course: You may be required to file certifications witht he court regarding domestic support obligations (child support/alimony) and an additional personal financial management course to be eligible for discharge. Contact your attorney to discuss.

Discharge: You will receive a copy of the Discharge of Debtor directly from the Bankruptcy Court.

Major CC's - Barclay's ($5.5K) | Barclay's Sallie Mae MC ($5K) | DCU ($7.5K) | Discover IT ($1.4K) | Genisys Visa ($1.4K) | NFCU Visa ($22K) | Navcheck ($15K) | Chase Freedom ($5K) | SDFCU Visa ($8K) | Amex BCP ($9.5K) | Amex Delta ($10K) |Store CC's| -Amazon ($4K) | Catherines ($850) | JCP ($4K) | Macy's ($1.7K) | Avenue ($850) | Victoria's Secret ($1.4K) | Walmart ($4.1K) | Paypal SC ($1.3K) | HSN ($2.5) | Sears ($2.6K) | Sams Club ($4.1K) |Goal|: Age with grace to 750 across the board |Last app|: 3/3/2014