Filing Chapter 13 Bankruptcy -
In the event of an emergency, a debtor can file a "skeleton" petition, where the face page of the petition and a list of all creditors is filed. The debtor then has 14 days within which to file a plan, and 45 days to file the balance of the documents. This type of petition is filed where the debtor has waited until the last minute before seeing counsel and filing.
Most of the time, it is done just before a scheduled foreclosure sale, eviction, or wage garnishment. It is generally the better practice to try to have all of the required papers filed with the initial petition. This makes the system function better and minimizes delay. However, the key is to file bankruptcy papers which are complete and accurate, so that the case can be properly analyzed by the trustee, creditors, and the bankruptcy judge.
Chapter 13 Trustee
The court appoints a person to act as the Chapter 13 trustee. In many districts, there is a "standing trustee" for each particular court or geographical area, who may have up to 10,000 cases or more and a staff of 30 or more. The trustee has the job of both evaluating the case and making recommendations to the court, and acting as the disbursing agent for the debtor's plan payments. The Chapter 13 trustee's officeis funded by a portion of the plan payments, usually anywhere between 4-10%. The Chapter 13 trustee is generally selected by the local United States Trustee.
Giving Documents to the Trustee
The debtor is required to provide the Chapter 13 trustee with paystubs for the 60-day period prior to the filing, as well as copies of his tax return for the most recent year. In certain cases, especially those involving sole proprietors, the trustee will request copies of business related records, including business bank statements, profit and loss statements, evidence of business liability insurance, and related items. The debtor has a duty to cooperate with the trustee in providing this documentation.
Foreclosure or Eviction During the Automatic Stay
Where there is a foreclosure or eviction or other serious
action about to occur, it is common for the debtor or his counsel
to voluntarily advise the creditor in writing of the bankruptcy filing,
immediately upon filing, so that the creditor observes the stay. Acts
taken in violation of the automatic stay are either completely void,
or voidable at the instance of the debtor. A creditor may be subject
to a suit for damages and attorney's fees for a willful violation
of the automatic stay.
Written by Henry Rendler
Written by Henry Rendler
Types of Bankruptcy
- Filing Chapter 13
- Meeting of Creditors
- Filing Chapter 13 Plan
- Creditors' Claims
- Plan Confirmation
- Order Confirming Plan
- Appealing OCP
- Modifying Plan
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