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Office of the Chapter 13 Trustee

Office of the Chapter 13 Trustee. Orientation. Purpose of Orientation. To Welcome To Reassure To Empower To Offer Help (but no legal advice). Bankruptcy. Federal law provides protection from creditors to: Individuals Families Farmers Small businesses Corporations.

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Office of the Chapter 13 Trustee

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  1. Office of the Chapter 13 Trustee Orientation

  2. Purpose of Orientation • To Welcome • To Reassure • To Empower • To Offer Help (but no legal advice)

  3. Bankruptcy • Federal law provides protection from creditors to: • Individuals • Families • Farmers • Small businesses • Corporations

  4. Types of Bankruptcy • Chapter 11: Business and Corporations • Chapter 7: Liquidation • Chapter 12: Family Farmers • Chapter 13: Families and Small Business to reorganize

  5. Chapter 13 • Allowed to receive protection from creditors • Able to receive discharge from most debts • Chapter 13 allows debtors to reorganize and pay back some or all debts.

  6. Parties • Debtors • Attorney • Creditors • Trustee and staff • Judge

  7. Case Number • Put your case number on page iii in your handbook. • Use your case number on all checks and correspondence. • Know your case number when calling the Trustee’s Office.

  8. Payments • All payments must be mailed to the lockbox. • Most payments are made by wage order. • No payments can be dropped off or left at the Trustee’s Office. • Never send cash.

  9. Payments • Make checks or money orders payable to the Chapter 13 Trustee. • Put your name, case number, and last 4 digits of SS# on the check or money order. • Take payment to the 341 Meeting. • Continue to mail payments until it is taken directly from your paycheck.

  10. Length of Plan • Plan will last 36-60 months. • Plans can last no longer than 60 months (5 years.) • Plans offering less than 100% to. unsecured creditors must last at least 36 months.

  11. PAYMENTS • Direct payments are only permitted in certain circumstances. • Allowed to send extra payments to shorten the plan. • Cannot pay ahead. • Cannot ask to have a payment applied to a specific creditor.

  12. IRS • The IRS will be watching a little closer. • Make sure to file returns on time. • Will not receive a refund if any debt is owed to the IRS. • Refund will come to the Trustee’s Office to be applied to the debt. • If you do not owe and your case is not in arrears, the refund will come to you. You cannot get it electronically, and it will be slower in coming.

  13. Call Your Attorney (CYA) • For any legal questions • If you need to buy or sell items • Need court approval while in the plan • Applies to high-priced items – you can have a garage sale, but you can’t sell your car • If you change jobs or move to a new address

  14. Call Your Attorney • If you receive a Motion to Dismiss or a Motion for Relief from Stay • If you have concerns about co-debtors • If you lose your job or have a medical situation making it difficult to complete your plan

  15. Automatic Stays • Collection activity and creditor contact must stop. • Goes into effect as soon as case is filed. • Remains in effect with continued current payments and current insurance. • Creditors must ask court for release from automatic stay.

  16. How Debts Are Paid • Each creditor files Proof of Claim. • Notice of Intent • Friends and family owed money can file a claim. • Semi-Annual Reports sent every April & October • Website available 24/7

  17. Things to Remember

  18. Remember: • We do not send junk mail! Immediately open any letter from us, the Court or your attorney. • Confirmation • When you leave the 341 hearing, you will know if plan is ready for confirmation. • If something needs to be done, do it quickly. • If attorney needs to do something, cooperate.

  19. Remember: • Re-establishing your credit: pay utilities and other bills on time. • Mortgage companies: • Strictly follow automatic stays • Call them once a year • Watch your mail • Will file for foreclosure after discharge if you have missed any payments while in plan.

  20. Also Note: • Car Titles • The Trustee does not hold any car titles. • Contact the creditor after the vehicle is paid off to obtain the title. • Contact your attorney if you have problems getting the title.

  21. Remember: • Keep all bankruptcy papers together. • Do not send notes or letters with your payments to the lockbox. Use physical address on page 3 of handbook. • Notify us of any change of address or employers as soon as possible. Courts and attorney also need notification. • Keep insurance on cars and home at all times.

  22. Completion of Plan • Letter sent to you & employer to terminate wage withholding • Final report sent to creditors 4 -6 weeks later to check & compare records • Additional 4-6 weeks until you receive discharge • Need patience!

  23. Time • Keep final report and discharge for a minimum of 10 years. • A completed Chapter 13 will stay on credit report for 7 years from original filing date. • A case dismissed or converted to Chapter 7 will stay on credit report for 10 years.

  24. Website • Need password and log-in • Fill out and turn in last page of Website Agreement • Will receive password in about 2 weeks • Website includes: • Receipts page • Ledger page • Estimated pay-off amount • Other pages to track case

  25. Conclusion • Regaining control of your financial future • Re-establishing your credit • The office is here to help

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