In addition, no individual may be a debtor under chapter 13 or any chapter of the Bankruptcy Code unless he or she has, within 180 days before filing, received credit counseling from an approved credit counseling agency either in an individual or group briefing. 11 U.S.C. §§ 109, 111.
Checking to Make Sure Payments Are Made to Your Creditors. Most Chapter 13 trustees maintain a website that can be accessed by your attorney to see an accounting of the payments made by you to the trustee and the disbursements made to your creditors.
In some districts, the U.S. trustee or bankruptcy administrator (2) appoints a standing trustee to serve in all chapter 13 cases. 28 U.S.C. § 586(b). The chapter 13 trustee both evaluates the case and serves as a disbursing agent, collecting payments from the debtor and making distributions to creditors. 11 U.S.C. § 1302(b).
Chapter 13 entitles debtors to cure a default but not otherwise modify the terms of the mortgage. The debtor may spread the payments for missed months before the filing over the course of the repayment plan, but may not reduce monthly payments or the repayment schedule.
In most cases, unless the trustee or one of your creditors objects to the confirmation of your plan, the court will approve it. But if you don't propose a feasible plan that complies with all bankruptcy laws, the trustee can object to its confirmation.
If a secured creditor fails to file proof of claim, then you will not make any payments toward what you owe on your house or car during your repayment plan. At the end of the bankruptcy process, to keep the collateral, you will still owe the full amount of these secured debts.
A creditor or the trustee can object to the discharge of one or all of your debts in bankruptcy. The purpose of filing for bankruptcy is often to wipe out (discharge) qualifying debt, such as credit card balances, medical bills, and personal loans.
U.S. Trustee Program (Department of Justice) - this program oversees the administration of bankruptcy cases and private bankruptcy trustees and enforces the bankruptcy laws pursuant to 28 U.S.C. § 586 and 11 U.S.C. §101 et seq.
Does Chapter 13 Trustee Check Your Bank Account? Yes, it's highly likely that your appointed trustee will check both your personal bank accounts and any business-related bank accounts which you may have under your name.
After dismissal, an unsecured creditor can again start collection action against you. This means your debt is again collectible in full, and the creditor can send you account statements, call you at a reasonable hour to arrange repayment, or file a lawsuit to enforce the debt in civil court.
The trustee will let you know whether you need to appear at the confirmation hearing. If your case is confirmed, you'll make monthly payments according to your repayment plan until it is paid off (usually three to five years). After completing the plan, you'll receive your discharge.
For instance, Bankruptcy Rule 2004 authorizes the bankruptcy trustee to examine: the acts, conduct, property, liabilities or financial condition of the debtor. any matter which may affect the administration of the bankruptcy estate, or. any matter which may affect the debtor's right to a discharge.
The term "disinterested person" is defined in the Bankruptcy Code to include one who is not a creditor and "does not have an interest materially adverse to the interest of the estate or of any class of creditors or equity security holders, by reason of any direct or indirect relationship to, connection with, or ...
Creditors can request involuntary bankruptcy if they think that they will not be paid if bankruptcy proceedings don't take place. They must seek a legal requirement to force a debtor to pay their debts. Typically, the debtor is able to pay their debts but chooses not to for some reason.
As soon as you file for Chapter 13, you start making payments to the Chapter 13 trustee. The payment amount is determined by the repayment plan you...
Once the case is confirmed, you will pay in accordance with the confirmed plan or the procedures in place in your district. You might continue to m...
Depending on the procedures in place where you are filing for Chapter 13, at some point, the Chapter 13 trustee starts to make distributions to cre...
Most Chapter 13 trustees maintain a website that can be accessed by your attorney to see an accounting of the payments made by you to the trustee a...
When you file Chapter 13 bankruptcy, you must provide a list of your creditors and debts. You can use the Chapter 13 repayment plan to get current with your secured debts (like a house), and your unsecured debts (like credit card debt) will be discharged at the end of the bankruptcy process. However, each of your creditors must file a proof ...
The only exception is government bodies, which have 180 days. If you believe a creditor’s proof of claim is incorrect for any reason, you may object to it. The exact procedure for objecting varies, but your Chapter 13 bankruptcy attorney can assist you through the process. Generally, your attorney will file an objection, ...
In certain situations, you should file a proof of claim on behalf of your creditor (s) if they miss the deadline. However, depending on the type of debt you owe, you may not have to do anything. Common types of debt you might owe a creditor include:
Unsecured debt. This type of debt, which includes credit card bills and medical debt, is usually fully dischargeable in bankruptcy. This means that, regardless of whether your creditor files a proof of claim, these debts will be forgiven at the end of the bankruptcy process. Therefore, you typically do not have to do anything if an unsecured ...
Sometimes, one or more creditors fail to file a proof of claim within the time limit. Your bankruptcy trustee will send a report to you and/or your attorney ...
However, if your creditors do not file proofs of claim, you could still owe certain debts and be behind on payments at the end of the bankruptcy process. A Chapter 13 bankruptcy attorney can help make sure this does not happen.
If you choose not to pay these debts, you most often will have to surrender the collateral you pledged to secure those debts. Alternatively, you can agree to pay the debts and keep the collateral. However, the secured creditor still must file a proof of claim to be paid. If a secured creditor fails to file proof of claim, ...
Under the Bankruptcy Code, Chapter 13 is referred to as an “Adjustment Of Debts Of An Individual With Regular Income.” So from the title you can see that a Chapter 13 petition may only be filed by an individual (or a married couple), not a corporation or a partnership.
The essence of Chapter 13 is the “Plan” that your bankruptcy attorney prepares, in consultation with you, and that is filed with the Bankruptcy Court when you file your petition. Everyone who files Chapter 13 must file a Plan with the Court.
Most debts are “discharged” when you complete all payments due under your Plan, with the exception of most student loans. Of course your Plan can most likely lower your payments on your student loans during the Plan term and any other amounts due are deferred during the term of the Plan.
After you file your plan, both the trustee and creditors will have an opportunity to object to the provisions. If you aren't able to work out the problem informally, you'll respond to the objections. The bankruptcy judge will decide whether to approve your plan at a Chapter 13 confirmation hearing.
In Chapter 13 bankruptcy, you pay the Chapter 13 bankruptcy trustee the monthly payment required by your Chapter 13 repayment plan. The trustee distributes the funds to creditors each month. Here's how it all works.
Most Chapter 13 trustees maintain a website filers can use to see an accounting of the payments made by you to the trustee and the disbursements made to your creditors.
Continuing Payments After Chapter 13 Plan Confirmation. After you file your plan, both the trustee and creditors will have an opportunity to object to the provisions. If you aren't able to work out the problem informally, you'll respond to the objections. The bankruptcy judge will decide whether to approve your plan at a Chapter 13 confirmation ...
You'll likely continue to mail payments to the Chapter 13 trustee or pay through an online system. If you're working, the court might order your employer to withdraw the payment directly out of your paycheck and forward it to the Chapter 13 trustee through a wage deduction order.
An easy way to make sure that you pay the trustee on time is this: After the court sends you the trustee's name, check the trustee's website for payment instructions (or call the office). You'll want to know: 1 when the first payment is due 2 where to send your payment, and 3 whether to pay by check, money order, cashier's check, or in some other manner.
An easy way to make sure that you pay the trustee on time is this: After the court sends you the trustee's name, check the trustee's website for payment instructions (or call the office). You'll want to know:
Preparing a Chapter 13 is a huge amount of work and there are a lot of documents that we need from you. Of course, we do prepare all of the documents that are submitted to the court but we can’t do it without your help. A Chapter 13 consists of schedules that list assets, debts, income, expenses, a statement about your recent financial history, the Chapter 13 plan and the Means Test.
A Chapter 13 bankruptcy differs from the liquidation form of a Chapter 7 by restructuring your debt into a repayment plan that involves one monthly payment extending over three to five years. This type of filing is beneficial for those who have assets they would like to retain, such as collateral-backed property like a home or vehicle but who also have significant unsecured debt like medical bills or credit card debt. It is also an option for those who bring in an income that surpasses California’s median income for a similarly-sized household and thus are not eligible to file under Chapter 7.
Chapter 13 may allow you to do a Lien Strip. Lien stripping refers to the process of eliminating your junior liens (such as second or third mortgages or HELOCs) from your real estate. Lien stripping allows you to get rid of the “wholly unsecured” liens on your property and you can still keep the property.