Are you currently in a Chapter 13 or 7 bankruptcy? Have some questions? Here are some of the most common questions and answers that can help guide you through the process.
MY VEHICLE IS NO LONGER WORKING. HOW DO I OBTAIN A NEW ONE?
As long as your plan payments are current, you can almost certainly obtain a new vehicle. When you wish to obtain a new vehicle, many dealers will give you false information. Many will say you need trustee/Court permission BEFORE you get pre-approved. This is not the case. Because the Court needs to know if you're getting a bad deal, we need you to be pre-approved FIRST with the information below. Therefore, please email us a copy of the lease or purchase proposal from the dealer and also fill out the information belowf the dealer will not get you pre-approved, call around and find a dealer who deals with Chapter 13 cases on a regular basis. This process can take up to 6 weeks, so let your dealer know that before he/she gives you a short window of opportunity, and the payment must be $450 or less typically.
Type of Transaction: [INSERT: PURCHASE OR LEASE]
Type of Vehicle:
Finance Company: [__________________] or similar finance company
Term: Not to exceed____________months
Monthly Payment: Not to exceed____________
Interest Rate: Not to exceed____________________
Payment Method: Directly by Debtor
Down Payment: __________
Reason for purchase/lease (i.e. current car has broken down/repossessed):
Where are you getting the down payment from?:_____________________
We will also need a copy of your last 2 years of tax returns, and last two monnths of pay stubs from you and your spouse (if any).
As long as your plan payments are current, you can almost certainly obtain a new vehicle. When you wish to obtain a new vehicle, many dealers will give you false information. Many will say you need trustee/Court permission BEFORE you get pre-approved. This is not the case. Because the Court needs to know if you're getting a bad deal, we need you to be pre-approved FIRST with the information below. Therefore, please email us a copy of the lease or purchase proposal from the dealer and also fill out the information belowf the dealer will not get you pre-approved, call around and find a dealer who deals with Chapter 13 cases on a regular basis. This process can take up to 6 weeks, so let your dealer know that before he/she gives you a short window of opportunity, and the payment must be $450 or less typically.
Type of Transaction: [INSERT: PURCHASE OR LEASE]
Type of Vehicle:
Finance Company: [__________________] or similar finance company
Term: Not to exceed____________months
Monthly Payment: Not to exceed____________
Interest Rate: Not to exceed____________________
Payment Method: Directly by Debtor
Down Payment: __________
Reason for purchase/lease (i.e. current car has broken down/repossessed):
Where are you getting the down payment from?:_____________________
We will also need a copy of your last 2 years of tax returns, and last two monnths of pay stubs from you and your spouse (if any).
I RECEIVED AN OBJECTION FROM THE TRUSTEE OR A CREDITOR. WHAT DO I NEED TO DO?
Absolutely nothing unless we direct you to do so. Objections are quite common in Chapter 13 cases, and it is your lawyer's job to resolve those. If documents or amendments are needed, we will contact you right away.
MUST I TURN OVER TAX REFUNDS?
No. You can keep your tax refunds. We will, however, need a copy of your tax returns each year.
DO I NEED TO REPORT A BONUS, INHERITANCE OR OTHER LUMP SUM OF MONEY TO YOU?
Yes indeed. Please let us know right away so we can plan on the best way of handling the funds.. Do not spend these funds until you speak with us.
WHAT ABOUT A WAGE INCREASE?
Yes - we need to know about that too when it happens. It doesn't mean your payments will increase, however.
I received an objection from the Trustee and/or Creditor in my case and 'prays' for dismissal! What do I do? Is my case dismissed? This is scary!
Objections are filed in many cases and though they may look frightening, their bark is worse than their bite. They are essentially the way that a Trustee or Creditor says 'we have a little issue with your case that we need addressed, so please fix it or let's come to an agreement to get your plan approved'. Is there a typographical error in the paperwork? Do we need to list another address for a creditor? Should payments be higher (or lower) for some reason? You'll almost always see an objection. While it would be nice if the parties could just send an email to your attorney saying 'hey, can you change this sentence slightly', some attorneys don't take those as seriously as a formal objection, which must be resolved at times in front of the Judge. But unless your payments are not being made, the vast majority of objections are resolved without your case being dismissed. Bottom line: don't worry about it - let your attorney handle the matter.
I RECEIVED A DOCUMENT FROM THE COURT SAYING CONFIRMATION IS DENIED. WHAT DOES THIS MEAN?
This just means the confirmation of your plan has been pushed into the future so that your attorney can amend documents and resolve minor issues with the Trustee or Creditors. It may look frightening, but it's nothing to worry about.
YOUR OFFICE REQUESTED I SEND A DECLARATION PAGE FOR MY AUTO INSURANCE. WHAT IS THIS?
An auto insurance declaration page is a summary of your auto policy provided by your auto insurance provider. This page will include the following information:
- Name of your car insurance provider
- Policy number
- Policy term
- Types of coverage you have elected
- Limit for each coverage
- Cost for each coverage
- Specified vehicles covered by the policy and information describing those vehicles
Contact your insurance agency to have them fax this to you or email to you, so you can send to our office.
CREDITORS KEEP CALLING ME EVEN AFTER I FILED MY BANKRUPTCY. WHAT DO I DO?
Typically creditors will only call you for a week or so after filing because they haven't received notice yet. Either way, when a creditor calls AFTER you have filed bankruptcy:
(a) Ask for their name/address/phone and fax number.
(b) Provide that information to your lawyer.
(c) Give them your attorney contact information and your bankruptcy case number, and politely tell them to stop contacting you.
If they need to be added, they will be notified and added to your case.
WHAT IF I FORGOT TO LIST A CREDITOR?
The Court charges $31 each time we add a creditor, so wait until you have all of the ones you forgot to add and then provide their name/address/amount owed and account number information to your attorney so they can be added.
WHY DO I HAVE TO MAKE MY FIRST PAYMENT PRIOR TO MY COURT HEARING OR THE APPROVAL OF MY PLAN?
It's the law. 11 U.S. Code § 1326 states as follows:
(1) Unless the court orders otherwise, the debtor shall commence making payments not later than 30 days after the date of the filing of the plan or the order for relief, whichever is earlier, in the amount--
(A) proposed by the plan to the trustee;
'No later' means within the 30 day time frame - so it's best to start those payments two weeks after filing because, with processing time, it can take a few days for them to post. I always say, send payments early and often. It's best to be ahead of schedule than trying to catch up because if you miss one or two payments, your case could be dismissed.
WHAT ABOUT A WAGE INCREASE?
Yes - we need to know about that too when it happens. It doesn't mean your payments will increase, however.
I received an objection from the Trustee and/or Creditor in my case and 'prays' for dismissal! What do I do? Is my case dismissed? This is scary!
Objections are filed in many cases and though they may look frightening, their bark is worse than their bite. They are essentially the way that a Trustee or Creditor says 'we have a little issue with your case that we need addressed, so please fix it or let's come to an agreement to get your plan approved'. Is there a typographical error in the paperwork? Do we need to list another address for a creditor? Should payments be higher (or lower) for some reason? You'll almost always see an objection. While it would be nice if the parties could just send an email to your attorney saying 'hey, can you change this sentence slightly', some attorneys don't take those as seriously as a formal objection, which must be resolved at times in front of the Judge. But unless your payments are not being made, the vast majority of objections are resolved without your case being dismissed. Bottom line: don't worry about it - let your attorney handle the matter.
I RECEIVED A DOCUMENT FROM THE COURT SAYING CONFIRMATION IS DENIED. WHAT DOES THIS MEAN?
This just means the confirmation of your plan has been pushed into the future so that your attorney can amend documents and resolve minor issues with the Trustee or Creditors. It may look frightening, but it's nothing to worry about.
YOUR OFFICE REQUESTED I SEND A DECLARATION PAGE FOR MY AUTO INSURANCE. WHAT IS THIS?
An auto insurance declaration page is a summary of your auto policy provided by your auto insurance provider. This page will include the following information:
- Name of your car insurance provider
- Policy number
- Policy term
- Types of coverage you have elected
- Limit for each coverage
- Cost for each coverage
- Specified vehicles covered by the policy and information describing those vehicles
Contact your insurance agency to have them fax this to you or email to you, so you can send to our office.
CREDITORS KEEP CALLING ME EVEN AFTER I FILED MY BANKRUPTCY. WHAT DO I DO?
Typically creditors will only call you for a week or so after filing because they haven't received notice yet. Either way, when a creditor calls AFTER you have filed bankruptcy:
(a) Ask for their name/address/phone and fax number.
(b) Provide that information to your lawyer.
(c) Give them your attorney contact information and your bankruptcy case number, and politely tell them to stop contacting you.
If they need to be added, they will be notified and added to your case.
WHAT IF I FORGOT TO LIST A CREDITOR?
The Court charges $31 each time we add a creditor, so wait until you have all of the ones you forgot to add and then provide their name/address/amount owed and account number information to your attorney so they can be added.
WHY DO I HAVE TO MAKE MY FIRST PAYMENT PRIOR TO MY COURT HEARING OR THE APPROVAL OF MY PLAN?
It's the law. 11 U.S. Code § 1326 states as follows:
(1) Unless the court orders otherwise, the debtor shall commence making payments not later than 30 days after the date of the filing of the plan or the order for relief, whichever is earlier, in the amount--
(A) proposed by the plan to the trustee;
'No later' means within the 30 day time frame - so it's best to start those payments two weeks after filing because, with processing time, it can take a few days for them to post. I always say, send payments early and often. It's best to be ahead of schedule than trying to catch up because if you miss one or two payments, your case could be dismissed.
