Paying The Chapter 13 Bankruptcy Trustee

If you are gainfully employed, the payment will most likely come directly from your wages in the form of a payroll control order. If you are self-employed or do not receive a regular pay check, then you will have to make the payment directly to the Chapter 13 Trustee. If you fall behind on your payments, the Trustee or a creditor can bring a motion to dismiss your case. + Read More

Chapter 13: There Are Times When Not To Pay Off Your Case

Chapter 13 Question: The question arose recently as to whether or not a person should pay off their chapter 13 with inherited money that was received after the case was filed. The answer to that really depends upon whether or not the person is in a 100% paid back or whether or not the person is in a less than 100% pay back. If you are paying back less than 100%, then your case needs to last at least 36 months. If you make the mistake of prepaying or overpaying in a 10% case, you will be forced to pay in additional funds which were not actually required. If, on the other hand, you are in a 100% repayment plan, then you can pay off the case at any time with inherited funds at no detriment to + Read More

Interesting Development in Some Chapter 13 Bankruptcy Cases

When the bankruptcy laws were changed on October 17, 2005, there was an effort to curb abusive filings. To do so, a means test was authored utilizing IRS standards for acceptable expenses. In addition to the means test, there were requirements such as having completed a credit counseling session before a case can be filed and financial management instruction completion before a case can be discharged. There were also measures aimed at curbing repetitive filings. This all centered around the creation of and the existence of the automatic stay. If someone was filing a chapter 13 bankruptcy within one year after a prior case was dismissed, then the automatic stay would only last in the new + Read More

Will My Employer Know About My Chapter 13?

This video talks about your employer as it relates to your Chapter 13 bankruptcy filing. Jesse Barrientes: Well, Dave, what happens – you’d mentioned before about payroll control where the money is coming out. If I didn’t do payroll control, would my employer find out? Obviously if I’m doing payroll control, they’re going to know. But if I didn’t want to do that? David Siegel: Well, your employer only needs to find out if you are either on payroll control or if there’s a garnishment pending and therefore we need to send proof of your Chapter 13 bankruptcy filing to your employer to stop the garnishment. Otherwise your employer does not need to know. Your neighbors don’t need to know. + Read More

What Are The Costs Associated With Filing Chapter 13?

This video talks about the costs associated with filing a Chapter 13 bankruptcy case. David Siegel:               What is it, other than paying the stuff back, what is it going to cost me in terms of attorney’s fees, court filing fees and I’m just guessing that the trustee is going to have to be paid. Jesse Barrientes:         Right.  The way it works right now and this is forever changing, the filing fee for a Chapter 13, anywhere in the country, the court cost is $281.  The attorney’s fees are going to vary by jurisdiction.  But here in the northern district of Illinois, the judges have adopted what’s known as a model retention agreement which provides for a flat fee of $4000 over + Read More

Dismissing A Chapter 13 Bankruptcy Case To Re-File

This video talks about the ability, at times, to dismiss a Chapter 13 bankruptcy case in order to re-file another Chapter 13 bankruptcy case. Jesse Barrientes:         Let’s take the situation that we were talking about before about getting credit.  So if we are getting credit for an automobile, let’s say that it becomes difficult for me because of the reasons you said.  Can I dismiss my 13 and refile it?  David Siegel:               You can. Jesse Barrientes:         And include that automobile that before was post petition? David Siegel:               Yes, if you dismiss your case and then refile, you are basically starting over.  That new filing date controls.  However, if you + Read More

Paying Off A Chapter 13 Bankruptcy Plan Early

This video talks about the ability to pay off a Chapter 13 bankruptcy case early.  There are times when this is not a good idea. Jesse Barrientes:         Well, Dave, what happens if we are in this plan here for a couple years and let’s just say that I have inherited some money.  And you know what?  I never wanted to do a bankruptcy in the first place.  I just didn’t have much of a choice.  But now I find myself in a position where hey, guess what.  I can pay everybody off. David Siegel:               If your case is paying back 100% anyway, then you can go ahead and pay it off, just like you are prepaying a mortgage or paying off your vehicle.  If however you are in a 10% or 20% plan + Read More

Obtaining Credit While In A Chapter 13 Bankruptcy Case

This video talks about obtaining credit while in a Chapter 13 bankruptcy case. Jesse Barrientes:         What happens if – because it’s going to be lean living during this time.  What happens if I need to get credit?  If I’m going to be able – if I’m locked into this plan for three years or five years, and I need – I probably shouldn’t, not the greatest idea but I need credit, Dave.  Help me out. David Siegel:               Well, you are not going to get general credit for credit cards are things like that but what you will see is a case where someone has a vehicle in a bankruptcy Chapter 13 and the vehicle becomes in disrepair where it cannot run.  That person needs transportation to + Read More

Keeping Property In A Chapter 13 Bankruptcy Case

This video talks about keeping all of your property in a Chapter 13 bankruptcy case.  However, the debtor could elect to surrender property as well.  It really depends upon the desires of the debtor. David Siegel: Does someone get to keep all of their property when they are in a Chapter 13 or do they have to give up some property in exchange for this reorganization? Jesse Barrientes: Typically they get to keep all of their property. I suppose there have been some instances and I think I was referring to that before where you have people that are all over. People – low-wage earners and really high wage earners. And when you get to the top nonchalant or if somebody’s got 12 cars, yeah, + Read More

Creditor Objections In A Chapter 13 Bankruptcy Case

This video talks about creditors and their acceptance or rejection of a proposed plan. David Siegel: Let me ask you this, Jesse. Do creditors object to your plan for your organization or do they just accept it? Jesse Barrientes: It depends on the creditor. Sometimes they object. Essentially, and we talked about this which is similar in a Chapter 7. It’s a 341 Meeting. It’s essentially the same, Meeting of Creditors. But this is a meeting with the trustee to approve the plan. And I’ve seen some trustees for example; they want to maximize what it is. So let’s say for example that part of the money that’s coming out, okay, is voluntary contributions to your pension. Well, unless it’s what + Read More