FAQ For Current Chapter 13 Clients
Below are some of the common questions clients have about their case. Even though the answers are a bit generic, we hope this information is helpful. The information provided here is offered for informational purposes only; it is not offered as and does not constitute legal advice. You should always confirm your specific situation with your attorney.
Chapter 13 Questions
1. I am still getting calls from creditors. What do I do?
2. Do I have to go to a court hearing?
3. Where is the meeting of creditors held?
4. What will happen at the meeting of creditors?
5. Will an attorney be present with me at the meeting of creditors?
6. Do I need to bring anything to the meeting of creditors?
7. What happens if I accidentally miss my meeting of creditors?
8. I forgot to include a creditor. What can I do?
9. What is the "personal financial management course"? Is it mandatory?
10. Where do I mail my monthly plan payments?
11. My income has changed. What should I do?
12. Do I have to give my tax refunds to the Chapter 13 trustee?
13. How do I handle filing of tax returns after the Chapter 13 case is filed?
14. The car I am financing in my Chapter 13 Plan was in a wreck or is otherwise no longer functional. I need another car to get to work. What can I do?
15. I missed payments to the Chapter 13 Trustee and have received a Motion to Dismiss. What should I do?
16. I missed regular monthly payments on my house after filing a Chapter 13 case, and have received a Motion for Relief from Stay from the mortgage lender. What does this mean, and what can be done?
17. I want my monthly plan payment to be deducted from my paycheck by my employer. How can I do that?
18. Can I pay off my case anytime?
19. I plan to move out of state. Will this impact my Chapter 13?
20. When will I receive a discharge in my Chapter 13 case?
21. What if I receive an inheritance while in my Chapter 13 bankruptcy?
22. Can I buy, sell or refinance property while in Chapter 13?
Chapter 13 Answers
1. Sometimes it can take a month for creditor records to be updated to show you have filed bankruptcy. Always tell the creditor you have filed, give them your case number, and refer them to us.
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2. In most cases, you do not have to go to a "court" hearing. You have to go to a "Meeting of Creditors", but this is a short meeting with the trustee and no judge is present. One of our attorneys will be with you at the hearing. About 30 days after this meeting, one of our attorneys goes to Court for the Confirmation Hearing to get your Plan approved by the court. You are not required to attend unless we have specifically asked you to be there.
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3. For Portland Chapter 13 cases, the meeting of creditors is at the Chapter 13 Trustee's Office in the Wells Fargo Tower at 1300 S.W. Fifth Avenue, Suite 1700, Portland, Oregon 97201 . Parking is available on the street, in the Wells Fargo garage under the building for an hourly fee, or at one of the nearby "Smart Park". For cases filed outside of Portland, you will receive a notice from the court and a letter from us with the location.
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4. At the meeting of creditors, the trustee has an assistant who will ask you a standard list of questions that is asked of everybody. These questions are easy to answer with yes or no. For example, you will be asked if you got a tax refund for the tax year before you filed the bankruptcy. After these standard questions, the trustee's attorney may ask some questions, but these are usually directed at your attorney, and cover technical aspects of your Plan. One of our attorneys, who will sit with you at the hearing, will answer the technical questions. The hearing usually lasts about 10 minutes. Creditors are allowed to attend the meeting and ask relevant questions if they want, but few ever attend.
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5. Yes, an attorney will be with you at the meeting. If your hearing is in Portland, one of our attorneys will attend with you. If your hearing is outside of Portland, we usually arrange for an experienced local bankruptcy attorney to attend the hearing with you. Either way, the attorney will have reviewed your file thoroughly prior to the hearing, and will meet with you shortly before the hearing to answer any last-minute questions.
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6. In every bankruptcy case, the debtor is required to provide two pieces of proof of identity at the creditors' meeting, one of which verifies the social security number. The preferred proof is a driver's license and social security card. Other acceptable proof includes: (1) government ID, (2) a state picture ID, (3) a U.S. passport, (4) a military ID, (5) a resident alien card, (6) a medical insurance card, (7) a pay stub, (8) a W-2 form, (9) an IRS Form 1099, or (10) a Social Security Administration report.
Prior to the hearing, you are required to provide the trustee with a copy of your most recent tax returns (state and federal) and copies of paystubs for the previous 60 days. If you have not done so, you must bring them to the hearing.
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7. If you miss the meeting of creditors, you should immediately contact us. Depending on the circumstances, we may be able to file a motion asking the Court to reschedule the meeting. The decision is completely up to the judge. If the motion is denied, your case is dismissed and you will need to file a new case.
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8. As soon as you realize you have forgotten to include a creditor in your bankruptcy filing, call the paralegal handling your case. Depending on the circumstances of your case, it may be possible to add the creditor by amendment. There is usually a fee to add omitted creditors.
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9. For all cases filed after October 17, 2005, all individuals in Chapter 13 are required to go through a "personal financial management course" in order to get their discharge. A certificate of completion must be filed with the court before the completion of the case, preferably within 45 days of the meeting of creditors. Get the certificate to us and we will file it with the court with the appropriate forms. The list of agencies approved to offer the course can be viewed here: www.usdoj.gov/ust/eo/bapcpa/ccde/index.htm
The office of Brian D. Lynch, Chapter 13 Trustee offers Personal Financial Management Instructional courses free of charge to Chapter 13 Debtors where Mr. Lynch is the trustee. Classes will be held on Tuesdays every week, from 11:30 to 1:30 at the Trustee's office.
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10. If your trustee is Brian Lynch, send the payment here:
Brian D. Lynch Chapter 13 Trustee
P.O. Box 420
Memphis, Tennessee 38101-0420
If your trustee is Fred Long, send the payment here:
Fred Long, Trustee
P.O. Box 467
Eugene, OR 97440
If your trustee is Robert Ridgway, send the payment here:
Robert E. Ridgway, Trustee
PO Box 993
Pendleton, OR 97801
Be sure to make your payment only by money order or cashier's check, and put your name and case number on your payment. Keep your money order receipt stub for future reference.
Your first plan payment is due within 30 days after your case is filed.
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11. Contact our office and speak with your paralegal. They will update your income and expense information so we can determine what action needs to be taken. Just because your income went up does not mean your plan payment has to go up. Your plan payment may go up, may stay the same, or may go down. The Order confirming your Plan requires you to report income increases of more than 10% from when you started your case.
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12. Yes, but there are some exceptions, such as if your refund is all due to earned income credits or to additional child tax credits. In some circumstances, the Trustee may allow you to keep some of your refund for a specific emergency expense that has come up. If you think you have such a case, call our office. Never cash or spend a tax refund unless your attorney has advised you to do so.
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13. File the returns on time as normal. Please make a copy of the returns, and forward to our office. We will provide the Chapter 13 Trustee with a copy.
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14. The Trustee must approve a vehicle purchase before you finance it. Call our office to speak with your paralegal who knows how to help get the Trustee's approval and to make the necessary updates to your case. It is usually possible to obtain Trustee approval to purchase another vehicle, so long as the new vehicle's purchase price is less than $12,000, and the monthly payment is less than $325. We can refer you to several dealerships that know the process for vehicle purchases while in Chapter 13.
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15. You should immediately call the office to speak with your paralegal. We can usually resolve the issue by adding "strict compliance" language to your current plan or by filing a modified plan. Time limits are involved so call the office as soon as you get the motion.
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16. A Motion for Relief From Stay is the lender seeking court permission to foreclose. You should immediately call us. Under most circumstances, a settlement can be reached with the lender to prevent the foreclosure. Usually, you will have to catch-up the payments you missed within 6 months and make all future payments on time. Time limits are involved so call us as soon as you get the motion.
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17. Call our office and ask your Chapter 13 paralegal to have the wage deduction started. We will need the payroll address for your employer.
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18. It is usually best to wait until you have been in the case for 3 years before asking to pay it off. That is because the law says if you want to pay off a case sooner than 3 years, you have to pay 100% of your unsecured creditors, whereas, if you wait until after 3 years, you don't. Call us if you want to see how much it would be to pay off your case "early".
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19 . Your case is not affected by your move, and you can live anywhere you choose. Of course, we would like you to let us know your new address and telephone number, as well as any updates to your employment information.
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20. When it appears to the Chapter 13 Trustee that all payments required under the Plan have been made, the Trustee's office conducts an "audit" which is just a standard review all cases get before discharge. The review takes about 90 days after which the Trustee will ask the Court to issue your discharge.
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21. You will need to let us know immediately. Depending on your circumstances, you may be able to keep your inheritance. This is not a black and white area of the law.
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22. Yes, but before you do anything, call us and speak to your paralegal. There are procedures which must be followed for buying, selling or refinancing property while in chapter 13. We will help you through the process as well as your realtor, mortgage broker, and/or escrow agent. We also can refer you to realtors and lenders who are experienced in handling bankruptcy cases. The number one rule is to call us first.
