Answers to chapter 13 bankruptcy questions along with information on how to file your own bankruptcy and save thousands in legal fees!
- How do I get started filing a chapter 13 bankruptcy?
- Is it true that I won't actually see a Judge?
- Do I get to pick my Trustee?
- Who are the players in the 341 meeting?
- Who else attends the 341 meeting?
- What happens after the 341 meeting?
Up 1. Filing a chapter 13 bankruptcy, how do I get started?
The first thing you must do is file a simple, two-page form called a "Petition"in court asking for relief under chapter 13 bankruptcy. The form must be signed by you and any other debtors filing with you such as a spouse.
This is the first official step in the chapter 13 bankruptcy process, and it's the actual filing of the petition that puts into motion what's called an "automatic stay".
From this point on creditors may no longer demand money from you, bring you to court to collect debt or even to proceed with foreclosure or repossession of your property.
The court will provide a "docket number" which is another way of saying your case number. This docket number can stop foreclosure proceedings and most other actions except those allowed by motion in the bankruptcy court.
The second thing that happens is about 7 - 10 days after filing the petition you'll be required to submit a document, called the Matrix, which lists of all your creditors names and addresses to the court.
The third thing that happens is about 7 - 10 days after submitting your Matrix, you'll need to submit a plan outlining exactly how you propose to reorganize under chapter 13. This plan includes your income, liabilities, all assets, monthly expenses, past financial history and evidence that you are capable of fulfilling your financial obligations under your plan.
Once you've filed your plan you'll have an opportunity to file amendments as necessary. For instance, you may need to add creditors, or modify your plan based on an income change, or some other unforeseen circumstance. Amendments may require additional filing fees.
Up 2. Is it true that I won't actually see a Judge?
Usually, people applying for Chapter 13 never see a Judge. More than likely you'll be assigned a Trustee who handles the particulars of your case. Only if your creditors contest your case and the Trustee cannot work out the issues, will you appear before a Judge.
Up 3. Do I get to pick my Trustee?
No, the court assigns all trustees. You'll be contacted for a 341 meeting 1 to 3 months after filing bankruptcy. This is a meeting at which the debtor is questioned under oath by creditors, a trustee, examiner, or the United States trustee about his/her financial affairs. Normally, there will only be one of these meetings.
Up 4. Who are the players in the 341 meeting?
Besides you, there is the court appointed trustee, all your creditors, and, if hired, your attorney. The trustee coordinates the meeting, asking most of the questions. The trustee acts on behalf of both you and the creditors to ensure your plan meets all the Bankruptcy rules, and ensures unsecured creditors are protected and allocated as high of a return as possible.
Up 5. Who else attends the 341 meeting?
Basically everyone you listed as a creditor will be invited to attend but, don't be alarmed since most creditors never show up except the largest ones. Each creditor that does show up has the right to question you, (you're under oath) regarding your financial situation and your proposed plan.
Up 6. What happens after the 341 meeting?
Hopefully you've outlined a solid plan (one with good intentions) and it's accepted by all. The meeting is adjourned and you'll be expected to start making the payments on the schedule outlined in the agreed upon plan.
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