chapter 13 bankruptcy

Chapter 13 Bankruptcy Process

Each case is different, however, below is a summary of the progression of a typical chapter 13 case. Certain cases are more complicated than others and may deviate from this basic outline, which is provided for information purposes only.

Filing the Case:
Once you have signed your documents and paid the remaining balance of your fee, our office will be able to file your chapter 13 bankruptcy petition electronically. We may file your case on the day you come in to sign or sometime within the next week, depending on circumstances. Once the case is filed the Court will assign a trustee to your case, and will assign you a case number. The automatic stay pursuant to 11 U.S.C. § 362 will also go into effect. From this point forward, your creditors are prohibited by law from contacting you or from attempting to collect on any debts listed in your schedules. If you receive any creditor contact after your case is filed, you should notify them that you have filed bankruptcy and give them your case number and our name and telephone number. Keep track of all creditor contact on our Call Log Form. About a week or two after your case is filed you will get a notice from the Clerk of Court that informs you of the date, time, and location of your creditors meeting, the date, time, and location of your confirmation hearing, and the date by which creditors must file claims in your case. You must attend your creditors meeting, which will be held between 20 to 40 days after your case is filed. You also must attend your confirmation hearing unless you are told otherwise by our office.

Mortgage Payments Due:
Many individuals file a Chapter 13 bankruptcy case in order to cure arrears on their home mortgage. In order for this process to work, the individual must make all of their mortgage payments that become due after their case is filed. So, if your case is filed in January, you must begin making direct mortgage payments in February, and you must make them every month thereafter. You must also provide proof of these mortgage payments to our office. Your chapter 13 plan will not be confirmed, or approved, by the Bankruptcy Judge if you do not provide our office with proof that your mortgage payments have been made. This is the case for first, second, and third mortgages, as well as mortgages on any rental property that you may own.

Plan Payments Due:
Your first payment on your chapter 13 plan is due 30 days after your case is filed. The plan payment will typically be payroll deducted however, your first plan payment must be made directly to the trustee in the form of a money order. Please see below for the payment address for your trustee.

Financial Management Class:
After your case is filed, you must take your financial management class and obtain a certificate of completion of the financial management class. Please see our Credit Counseling/Financial Management Course page for information and links to financial management courses that are approved for the state of Louisiana. You must bring your financial management certificate to your creditors meeting and provide it to our attorney for filing with the Court. If you do not complete the financial management course and provide the certificate to our office, you will not receive your bankruptcy discharge.

Creditors Meeting:
Your creditors meeting will be held approximately 20 to 40 days after your case is filed. The creditors meeting is also sometimes referred to as your bankruptcy hearing, or your § 341 meeting. You should arrive at your meeting at least 15 minutes before the scheduled time. For directions to the courthouse, please visit our Courts page. You must bring the following information and/or documentation to the meeting, failure to bring this information to Court could delay or harm your case:
• Your original driver’s license;
• Your original Social Security card;
• Your Financial Management certificate;
• Your most recently filed tax return;
• Your most recent bank statement; and
• Your most recent check stubs.

There will be security at the courthouse and you will not be allowed to bring in food, drinks, mobile phones, cameras, or weapons of any kind (this includes pocket knives). Also, if you have very small children, it may be a good idea to make arrangements for a babysitter on the day of your meeting. Our attorney will usually have the opportunity to meet with you prior to your hearing and you will also have the opportunity to listen to the cases called prior to yours so you will know what questions to expect.

Once your case is called it usually only lasts 5 to 10 minutes. The trustee that is appointed to your case will place you under oath and ask you a series of questions about your bankruptcy paperwork and the information provided therein. The whole proceeding is recorded on a tape recorder. In some cases, creditors will be present and will ask you questions, but most of the time, once the trustee is finished examining you, the meeting will be concluded and you will be free to go.

After the Creditors Meeting and Prior to the Confirmation Hearing:
Once your creditors meeting is concluded, there will be a period of approximately 20 to 60 days before your confirmation hearing. During the period between these two hearings, you must continue to make your monthly mortgage payments on your home and you must make sure that you plan payments are being made to the chapter 13 trustee, either by you directly or through a payroll deduction. Also during this time, the trustee usually requests additional documentation. You must provide this information to the trustee. Failure to do so may delay or harm your case. The trustee may also request that changes, called amendments, be made to your paperwork.

Typically, creditors such as your mortgage company will file Objections to your chapter 13 plan. This is an ordinary creditor tactic and should not be cause for concern. The creditor usually has only a minor dispute with respect to an interest rate, the value of collateral, or the exact dollar amount provided in your plan. These objections are usually cured by an amendment to your plan.

Individuals will often need to stop by the office for an appointment to sign amendments to their plans or schedules between the Creditors Meeting and the Confirmation Hearing. These amendments are usually made to comply with a request of the chapter 13 trustee or to cure an objection made by a creditor.

Confirmation Hearing:
The confirmation hearing is held before the Bankruptcy Judge at the date and time indicated in your original notice from the Clerk of Court. This hearing may be continued by the Bankruptcy Judge upon request from our office. In order for your chapter 13 case to succeed, you must have your chapter 13 plan confirmed by the Bankruptcy Judge. In order to have your plan confirmed, the following must occur:
• You must be current on plan payments to the chapter 13 trustee;
• You must be current on all post-petition mortgage payments and you must provide proof of these payments to our office; and
• All objections by your creditors and the chapter 13 trustee must be cured or overruled.

Post-Confirmation:
After your chapter 13 plan is confirmed by the Bankruptcy Judge, you must continue to make your direct mortgage payments, and continue to pay the chapter 13 trustee. If you receive a tax refund check, you must turn it over to the chapter 13 trustee to be paid to your creditors. If you receive a lawsuit settlement, you must turn it over to the chapter 13 trustee to be paid to your creditors. If you become entitled to an inheritance, you must turn it over to the chapter 13 trustee to be paid to your creditors. You are also not allowed to buy or sell property or to incur debt without court approval. If you want to try to buy or sell property, or incur debt you must contact our office immediately. In order to receive a discharge, you also must file a statement that you are current on your child support and/or alimony payments near the end of your case.

Discharge:
Upon completion of your payments under the chapter 13 plan, you should be current on your home mortgage(s), any vehicles included in your plan should be paid off, in addition to any tax debt, child support, or alimony that was included in your plan. At this point, you will receive your Discharge. The Discharge is the Order signed by the Bankruptcy Judge relieving you from personal liability on almost all debts. It is the Discharge Order that gives you a clean slate and provides you with the fresh start that you were seeking when you initially considered filing for bankruptcy. You should receive a copy of your Discharge Order in the mail.

Post-Discharge:
Once you receive a copy of your Discharge Order, it is a good idea to mail a copy of the Discharge Order along with a list of all the creditors that you listed in your case to the three main credit reporting agencies. This is a good first step to rebuilding your credit. The names and addresses of the major credit reporting agencies are as follows:

Equifax PO BOX 740256 Atlanta, GA 30374

Experian PO BOX 9701 Allen, TX 75013

Transunion PO BOX 2000 Chester, PA 19022

Once you receive your Discharge, you are protected by the Bankruptcy Code from attempts to collect on the debts listed in your bankruptcy case. If you receive a bill, a collection call, or are otherwise contacted by a creditor after you receive your discharge, please contact our office immediately so that we can take steps to stop this collection activity.

CHAPTER 13 TRUSTEES (MIDDLE DISTRICT OF LOUISIANA)

Mailing Address	Payment Address
Annette C. Crawford Chapter 13 Trustee PO BOX 64868 Baton Rouge, LA 70896 225.928.2531	Annette C. Crawford Chapter 13 Trustee PO BOX 2159 Memphis, TN 38101-2159 Website

CHAPTER 13 TRUSTEES (EASTERN DISTRICT OF LOUISIANA)

Mailing Address	Payment Address
S.J. Beaulieu, Jr. Chapter 13 Trustee 433 Metairie Road, Suite 307 Metairie, LA 70005 504.831.1313	S.J. Beaulieu, Jr. Chapter 13 Trustee PO BOX 6537 New York, NY 10249 Website