Bankruptcy Plan Questions
What should do if paying out my Chapter 13?
If paying your Chapter 13 case out, request an audit from our office for formal case payout and contact your attorney before making final payment. Do not make your final payment using the E-pay system. There is a 60 day hold on all final payments using the E-pay system.
Payout with certified funds. Once your final payment is received and your case pays out, it is audited. Upon completion of the audit and case has successfully paid out, we file a notice of completion. You must file financial management certifications and a motion for discharge through your attorney in order to receive a discharge if you are entitled to one under the law. Audits may take 4-6 weeks and your Income Withholding Order will be released during this process.
What is a Claim Bar Date?
A date set in which a creditor can no longer file a claim against the debtor as long as the creditor has received sufficient notice regarding the bankruptcy filing.
The bar date is included on your Notice of Bankruptcy Filing and the 341 Notice. When the bar date passes, you should contact your attorney to see what claims have been filed in your case and what claims need to be filed by your attorney, if any, for a successful completion of your plan.
Is the length of my plan fixed?
The length of your plan per the Confirmation Order is a close approximation. Over the life of your Plan there are several factors that affect Plan length. Sometimes a claim filed by a creditor reflects a higher dollar amount than what was stated in the Plan. This could mean that it would take more than 60 months to pay all the creditors. (Bankruptcy law dictates that no Chapter 13 Plan shall go over 60 months in length.)
When this happens, we notify the attorney that the Plan is deficient. The attorney in turn contacts the Chapter 13 filer to discuss filing a Modification. Another factor affecting Plan length is creditors not filing claims which could result in your Plan being completed earlier than originally anticipated.
What does “Confirmation” of my plan mean?
Confirmation of your plan means the Court has approved your proposal for payment and has signed an order which binds you and your creditors to the terms of your plan. You will receive a copy of the Order Confirming Plan. The amount you must pay is set in the Order.
You should review this order carefully and consult your attorney if you do not understand it. In the event your circumstances change, it may be necessary to change your plan payments by modifying your plan.