Is The First Plan Payment Required In A Chapter 13?

This video talks about the desire to have the first plan payment in hand when filing a Chapter 13 bankruptcy case.  It is required by my office in most cases.  There are some exceptions. Your office, Dave, you also do the first plan payment as well. Do you not? David Siegel: What I like to do in many cases is get first plan payment that’s going to go to the trustee upfront. The reason for this is its good faith, it shows the trustee when you go to meet him that you’ve already got one payment in the till, you show that you have the ability to pay and it also softens the creditor objections to a certain extent. Someone is not going to allege bad faith if you already can show that you + Read More

How Do I Pay The Chapter 13 Trustee?

This video talks about the method of paying the Chapter 13 Trustee.  Payroll control is the best way to have success in your Chapter 13 case. Jesse Barrientes: So how do I pay the trustee? Do I send them a check? A money order? How does that work? David Siegel: Well, if you are gainfully employed and you are working for an employer, then I’m going to mandate payroll control and that’s where the money comes directly out of your payroll check to the trustee. Jesse Barrientes: Does it have to come out? David Siegel: It has to come out through my office. I’m not going to do a case if you’re not going to go on payroll control because that basically tells me you don’t have a desire to + Read More

How Is The Chapter 13 Payment Amount Determined?

Your budget as compared to IRS standard allowances is going to determine, in part, how much you pay back to creditors over the life of your plan.  The video below touches upon that notion. Jesse Barrientes: Well, you mentioned the plan payment. How do I go about paying the trustee? So assume now we have gone through the numbers and we know what my disposable income is. And by the way, that’s pretty lean, right? There’s nothing else built in that budget. There’s nothing for entertainment or anything else. I’m going to be living lean for that period of time. David Siegel: Yeah, well, you should be living lean because you are depriving your creditors and making them wait 3 to 5 years. So + Read More

What Percentage Is Paid Back In A Chapter 13?

This video talks about the percentage that is paid back to creditors in a Chapter 13 bankruptcy case.  It will vary depending upon the assets, liabilities, income and expenses of a debtor.  Each case is particular to the facts of that case. Jesse Barrientes: What kind of percentage do you pay back in a Chapter 13 consolidation? David Siegel: It’s going to depend on a number of factors including your assets, your liabilities, your income, and your expenses. And whether or not you filed a Chapter 13 and got a discharge or a Chapter 7 in the last several years. In most cases is going to be the difference between your income and your expenses which is known as your disposable income. So + Read More

What Is The Automatic Stay In Chapter 13 Bankruptcy?

The video below talks about the automatic stay in a Chapter 13 bankruptcy case.  This is basically the protection from creditors that the filer is seeking. What is the Chapter – rather what is the automatic stay and is applicable in a Chapter 13? I know we talked of one of our other shows with respect to Chapter 7. We talked about the automatic stay. But is it applicable here, to Chapter 13 as well? David Siegel: It is. The automatic stay is what you get upon filing which basically tells creditors they cannot take certain collection actions. The automatic stay is everything the client is looking for. It stops the foreclosure dead in its tracks. As long as the sheriff’s sale hasn’t + Read More

Pre-Filing Requirements For Chapter 13 Bankruptcy Filing

This video discusses the pre-filing requirements for someone looking to file Chapter 13 bankruptcy.  They are similar, but not exactly the same as the requirements for filing Chapter 7 bankruptcy. What are the prefiling requirements for Chapter 13? David Siegel: Well, the first thing you have to do for Chapter 13, you have to provide your most recent federal, four years of federal tax returns. Jesse Barrientes: Four years? Why four years? David Siegel: Well, legislature felt that under Chapter 13, you should have to provide four. That’s not the case with other Chapters of the Bankruptcy Code but Chapter 13 is different. They want four years of federal tax returns. So if you have + Read More

Chapter 13 Bankruptcy: When Would Someone Want To File?

This video talks about under what circumstances someone would want to file for Chapter 13 bankruptcy.  Each case is different and each case needs the be evaluated to ensure that filing is going to accomplish the requested goal of financial relief. David Siegel: When would somebody want to file a Chapter 13? Jesse Barrientes: Well, to save a car or to save the house in arrears. We have a lot of mortgage issues going on. Sometimes people just need to kind to get a foothold on things. Maybe they haven’t been the best at managing their money and I find that there’s a lot of people – it really doesn’t matter. I’ve seen people that come in of all different types of income levels and have + Read More

Chapter 13 Bankruptcy: How It Works

The video below describes how Chapter 13 works.  This is just the starting point to what Chapter 13 can accomplish for those with financial issues. David Siegel: Okay, so what happens in a Chapter 13? How does it work? Jesse Barrientes: Well, in a Chapter 13, what happens is all of your assets kind of just go in one place. That’s what you call your estate. And depending upon what those assets are, the bankruptcy trustee kind of makes or pays off the secured and unsecured. With the Chapter 13, you have to be able to pay off 100% of your secured debt and as little as 10% all the way up to 100% of your unsecured debt within 36 or 60 months. So three or five years, that’s what they call + Read More

Chapter 13 Bankruptcy Introduction

The transcription below is from the Chapter 13 video explanation the general nature of what Chapter 13 bankruptcy is all about. David Siegel: You know, whether things are rolling in this country or whether they’re going downhill, there’s always a need for the Chapter 13, the reorganization, to find a way to pay back and get a fresh start to a certain extent. Let’s jump right in. What is Chapter 13 bankruptcy? Jesse Barrientes: Chapter 13 is a consolidation essentially is what it is. I also want to mention, there are a lot of companies that provide consolidation services, so-called. And my experience with them hasn’t been so good only because Chapter 13, right, is sanctioned by federal + Read More

Re-Filing Chapter 13 Bankruptcy Provides A Welcome Surprise

Current Chapter 13 Bankruptcy Client I have a client that is currently in a chapter 13 bankruptcy case, but is struggling to make her plan payments. The trustee has filed a motion to dismiss the case for failure to make timely payments. My client is approximately $1500 behind even though her trustee payments are being deducted out of her pay. This is primarily due to the fact that she was in between jobs and during that lapse in employment, she did not pay the entire plan payment on her own. Faced with the dilemma of the trustee's motion to dismiss, the client came to see me with regard to her options.  Option One One of the options of course is to get caught up with the trustee and save + Read More