Chapter 13

A Chapter 13 Bankruptcy is commonly referred to as a “reorganization” or wage earner plan. A trustee is assigned to your case, and a plan is created to make payments to your creditors. The plan payment will include priority debts such as mortgage arrears; past due taxes, past due child support, and past due alimony. Plan payments will last 3 to 5 years. Any unsecured debt not paid in full after the duration of your plan will be discharged.

Before filing, you will be required to take a “credit counseling” class, by an approved credit counseling agency. I will provide you with a list of approved agencies, or you can obtain the list from the United States Trustee’s website. Certification must be provided before your bankruptcy petition can be filed.

The “automatic stay” is a protection provided to you immediately upon the filing of your bankruptcy petition with the Court. This is an order from the court prohibiting any creditor from calling you, harassing you, pursing legal action against you, foreclosing on your home, repossessing your car or other secured property. This is a strong protection that will grant you the relief (and peace and quiet) you’ve been seeking and will last throughout the duration of your Chapter 13 Plan.

Once your case is filed, a trustee will be assigned. He will be responsible for verifying the accuracy and reasonableness of your plan. The trustee must ensure you have enough money to live on, but will challenge expenses that may be unreasonably high. The trustee’s job is to verify that you are making a “good faith” effort that is realistic. I will prepare your Chapter 13 plan based on the information you provide to me.  You will review it before the petition is filed with the court. Your first payment to the trustee will be due 30 days after you file, and thereafter for the duration of your plan.

Approximately five weeks after filing the bankruptcy petition a “Meeting of Creditors” (also known as the “§341 Hearing”) is held. If you are a Maricopa County resident, your hearing will be located in downtown Phoenix. Pinal County residents attend their 341 hearing in Casa Grande. At the hearing you will be placed under oath by the trustee, and the testimony will be recorded for the record. The assigned trustee will ask you several questions to verify that the information listed in your bankruptcy petition is truthful and accurate. Creditors may also attend this hearing and ask questions about your financial status, or your petition. I will attend this meeting with you, keep you informed of what to expect, and answer any questions you may have before and after the hearing.

After the hearing, you will be required to take a “financial management course”. Similar to the credit counseling course, this course is required before discharge of your debts. Once you have completed the course, a certificate should be sent to me so that I can file it with the court.

In a Chapter 13 Bankruptcy, non-dischargeable debts such as taxes, child support, and alimony can be paid through your Chapter 13 Plan. Also, a Chapter 13 allows you to pay any past due balances on your mortgage or car payments (secured debts) so that you can keep those things. Without bankruptcy you’d be at risk for foreclosure or repossession.  Essentially, a Chapter 13 Plan consolidates those debts into more manageable monthly payments.

After your hearing a Recommendation and/or Objection will be filed by the trustee regarding your Plan. This is filed by every trustee for every Chapter 13 case. I will work with you and prepare a “stipulated order confirming the plan” (“SOC”) which will be submitted to the trustee. Once the trustee gives his final approval, the court will “confirm” the plan.

1. Call 480-917-0340 to schedule your free consultation.
2. Meet with me to discuss your specific situation and all of your options.
3. Fill out documents, take your credit counseling class, and review all of these items with me at your follow-up appointment.
4. I will draft your court documents.
5. We will meet again to review and sign your petition.
6. Your case is filed with the Court.
7. Your first payment to the Trustee will be due 30 days after your case was filed (payable to the Trustee in the form of a cashier’s check or money order).
8. I will send you an email with your court date, a copy of your petition and Plan, and information on where and when to send your payments.
9. You will receive a letter from the trustee requesting documents such as pay stubs, bank statements and taxes.  You must comply with this request fully and promptly. (I do not receive this letter).
10. Your Meeting of Creditors will be held approximately 5 weeks after filing. You must bring photo Identification and your Social Security Card.
11. After your hearing, the Trustee will submit a recommendation and/or objection to the case. Please note, this is standard procedure, and happens for every case. (Sometimes the word “objection” makes people worry – I want you to know this is standard procedure for every Chapter 13 case).
12. I will submit a proposed stipulation order for confirmation (which is the customary response to the recommendation/objection).
13. When the stipulated order for confirmation is approved by the Trustee and the Judge, then your case is “confirmed.”
14. You will continue to make regular monthly payments to the Trustee during the process and then for the duration of your plan.

It is my goal to be your main contact during your case.  You will not be shuffled around from person to person. Don’t wait any longer.  Make your appointment to talk with me about your options.