FAQ For Current 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 7 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 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. I received an Adversary Complaint from one of my creditors. What is this and what should I do?
10. When will I receive my discharge from the court?
11. What is the "personal financial management course"? Is it mandatory?
12. What do I do about creditors with liens on my property (cars, appliances, etc.)? What is reaffirmation and redemption?
13. What is the difference between discharge and dismissal?
14. How do I clean up my credit after bankruptcy?
15. What if I receive an inheritance while in my Chapter 7 bankruptcy?
16. I filed a chapter 7 and now want to sell or refinance something (my house, car etc). May I?
Chapter 7 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. However, if your case includes a debt for personal property you are intending to keep, like your car, then the creditor will ask you to agree that you will continue to owe the debt after bankruptcy. This agreement is called a Reaffirmation Agreement. Once you sign that agreement and send it to the Court for approval, the Court will set a special hearing to ask you some simple questions to make sure you understand the agreement and can afford to make the payments.
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3. For Portland Chapter 7 cases, the meeting of creditors is at the United States Trustee's Office at the Gus Solomon U.S. Courthouse, 620 S.W. Main Street, Room 223, Portland, Oregon 97205. Some parking is available on the street, and there are several pay parking garages nearby. "Smart Park" garages are located at 1st & Jefferson or at 4th & Yamhill for about $1.25 per hour. 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 will ask a series of simple questions, the same as we asked you in our office consultation. An example of a question asked is, "Do you expect any tax refund for this year and how much?" The trustee is looking for non-exempt assets or to identify other legal issues in your case. Your attorney almost certainly will have discussed those issues with you well before the meeting. 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 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.
You will also need to bring a copy of statements for all bank accounts showing the balances on the date your case was filed plus a copy of your paystub through the date your case was filed.
The Trustee assigned to your case may send you a letter before your hearing asking you to complete a questionnaire and bring additional documents. If you fail to bring the requested documents, you may have to go to another hearing thereby increasing the time you are in bankruptcy and increasing your legal costs.
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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 missed a creditor in your bankruptcy filing, call the paralegal handling your case to see if you still have time to add the creditor. There is usually a fee to add creditors.
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9. It usually means a creditor is seeking a declaration by the court that its particular debt should not be discharged as part of your case. Contact us immediately so we can review the complaint with you and discuss your options.
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10. A notice of discharge is typically issued by the Court 60-75 days after the meeting of creditors. This assumes: (1) no creditor or trustee has filed an objection to your discharge; and (2) you have completed your financial management course and filed the certificate of completion with the court. The course can be done in person, via telephone, or by the internet. The list of approved agencies for the course can be viewed here: www.usdoj.gov/ust/eo/bapcpa/ccde/index.htm
If you do not receive your discharge from the court after 75 days, please contact our office.
Although a discharge is issued, you are not officially out of bankruptcy until the Court declares the case closed. Sometimes, a case can stay open for many months after issuance of a discharge. For example, in a case in which the Trustee determines that he wants money from you in exchange for keeping a non-exempt asset, the Court will not close the case until you send the Trustee the money and he files his final report.
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11. All individuals in Chapter 7 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 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
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12. You have three options in a chapter 7 case.
- First, you can "surrender" the property back to the creditor and discharge the debt.
- Second, you can "redeem" the property which means paying the creditor a lump sum based on the smaller of the amount you owe or the value of the item. If you cannot agree on the value, you can ask the court to determine it. You may be able to finance the lump sum payment thru family, friends, or companies that provide "redemption financing". . The sites listed below are operated by companies who provide that type of financing. Snyder & Associates does not endorse any particular redemption lender, these sites are provided for informational purposes only:
722 Redemption
http://www.722redemption.com/
Redemption Financial Services
http://www.freshstartloans.com/fslc/home.asp
- Third, you can keep the property and continue to pay the debt, but this option will usually require you to sign a "reaffirmation agreement" and you will once again be legally obligated to pay the debt. If you reaffirm a debt and fail to make the payments as agreed, the creditor can repossess the property and pursue you for any balance owed after they sell it. For a reaffirmation agreement to be valid, it must be approved by the court. You must attend a hearing where the judge will ask you whether you understand the agreement and can afford the payments. You have 60 days after the agreement is filed with the court to change your mind and rescind it.
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13. Obtaining a discharge is the goal of your case. It means the court has declared that your dischargeable debts are forever non-collectable. A dismissal is not good. It means the court has kicked you out of bankruptcy without a discharge. Usually a case is dismissed because you have failed to do something important in your case, after ample warning. If your case is dismissed, it may be possible to file a new case.
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14. A bankruptcy appears on credit reports for 10 years. You can rebuild your credit after bankruptcy. One approach is the use of a secured credit card. A secured credit card is simply a standard MasterCard or Visa backed by an interest-bearing savings account. Because the credit is secured by your cash deposit, the lender is assured you will stay within your credit limit and the debt will be paid. Only charge amounts that are within your means and make your payments on time. A regular payment pattern will help qualify you for unsecured increases in your credit limit. Other methods include using your savings account as collateral for a small loan or having a friend or relative co-sign a loan upon which you make the payments. Paying the loan on time will establish a new credit record with that bank. Using one of these methods over a one to two year period will help you establish new credit for purchasing such things as a home or an automobile. Other tips are available at www.bankrate.com. Also, there is a good book called "Bounce Back From Bankruptcy" by Paula L. Ryan.
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15. You need to let us know immediately. Depending on your circumstances you may be able to keep your inheritance. Do not spend any of it until you speak with your bankruptcy attorney.
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16. While you are in an open case, all your assets are under the technical control of the Trustee. So, it is only after the case is closed that you are allowed to sell or refinance something, like your house. If you must sell or refinance before your case is closed, call our office as we may be able to get the Trustee to allow it.
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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.
