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OFFICE OF THE CHAPTER 13 TRUSTEE DEBTOR ORIENTATION HANDBOOK

"Striving for Financial Stability Through Education" - A comprehensive guide to understanding Chapter 13 bankruptcy, including information on the United States Bankruptcy Code, types of bankruptcies, people involved in bankruptcy, payment methods, and tips for re-establishing credit.

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OFFICE OF THE CHAPTER 13 TRUSTEE DEBTOR ORIENTATION HANDBOOK

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  1. OFFICE OF THE CHAPTER 13 TRUSTEE DEBTOR ORIENTATION HANDBOOK “STRIVING FOR FINANCIAL STABILITY THROUGH EDUCATION” FRANK M. PEES STANDING TRUSTEE

  2. Time in Plan is like a Journey FINANCIAL SECURITY

  3. United States Bankruptcy Code Debtors Trustee Creditors Court

  4. Types of Bankruptcies Chapter 12 Chapter 7 Chapter 11 Chapter 13

  5. People Involved in Bankruptcy • Chapter 13 Trustee • Reviews all paperwork • Conducts 341 hearing • Makes recommendation • to Court as to whether • case should be confirmed • Receives your payments • Pays your creditors • Will ask for case to be dismissed if no payments Debtor • Individual or Family filing a bankruptcy • Need to file accurate paperwork with the court listing your debts,assets, income and expenses • Attorney • Advises you on everything concerning your bankruptcy • Files your paperwork • Appears at hearings • Negotiates with Creditors • Court/Judge • Resolves dispute between • you and your creditors • Can confirm, dismiss or • convert your case • Grants all discharges • Creditors • 3 Types of Creditors: Type determines how they are paid in plan

  6. Case Number • 05-56779 • 05-Year that your case was filed • 5-Jurisdiction where it was filed • 6779-Uniquely yours

  7. Wage Order: Employer deducts payment from paycheck & sends it to the lock box. You are responsible for making payments until wage order takes effect. If in doubt, check with the employer & with Trustee’s office Direct Payment: Permitted only in certain circumstances. Must be made by cashier’s check or money order with name & case number clearly printed on it & mailed to lock box. Plan Payments:All Payments go directly to a bank lock box for posting, not to the trustee’s office

  8. 100% Plan-Pays all filed claims in full as designated in the plan. Is considered a completed plan whenever this is accomplished, within five years Base Plan- Pays 100% on secured & priority debts & the highest percentage possible on unsecured debts. Plan length is five years Type & Length of Plan It takes time, but its worth it!

  9. I.R.S • You must timely file your taxes each year • If you owe IRS in the plan & are due a refund, you will not receive the refund. It will be applied to your IRS debt & the Trustee’s office will be notified to reduce the balance owed. • If you do not owe IRS in you plan & are due a refund, you will receive it. It will not go to the Trustee. You will not, however, be eligible for an electronic refund. • Anything to do with your taxes will be handled by the Special Procedures Dept.

  10. Remember to…… CYA (Call Your Attorney) • If you want to sell anything of Value (house, car, boat, etc. • If you want to incur debt • If you receive a “lift stay” or any legal papers by mail or hand delivery • If you change jobs • If you are unable to make your plan payment • If you have any legal questions concerning your case (The trustee, including his staff, cannot give you legal advice.)

  11. Automatic Stay • Automatic Stay • Repossession, • Foreclosure and all • Creditor contact has to stop • Stay Lift • Try to take • away stay

  12. Re-establishing your credit • Plan will help you to re-establish your credit • If you do not pay utilities, cable, telephone, etc. on time it will be harder to do so. The Trustee’s Office will help you on a case by case basis.

  13. Mortgage Companies • Mortgage Companies take stays seriously, but remember that a stay means a creditor cannot contact you. • This does not mean that YOU cannot contact them. • Contact your mortgage company once a year to make sure • that you are current on your mortgage Don’t let this happen to you forclosure

  14. Things to remember • Establish a “file 13”…a real one! Keep all paperwork pertaining to your plan in on secure place. • Mail or fax written notification of any change of address. Also, notify your attorney. • Notify both the trustee & your Attorney if you change jobs. • Maintain insurance on home & vehicles, make timely payments on your home file taxes on time & make plan payments on time • If you are making mortgage payments on your home, contact your mortgage company annually, or have your attorney do so, to make sure there have been no changes in the payment or escrow amount due.

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