AFTER FILING THE PETITION
Procedure After Filing
When the petition is filed, the Court will issue a Notice of Chapter 13 Bankruptcy Case, Meeting of Creditors, and Deadlines. This Notice will be sent to all creditors, to the debtor, and his attorney. The Notice will give the date and time of a meeting with the Chapter 13 Trustee. The debtor should receive this Notice from the bankruptcy court approximately ten (10) days after the bankruptcy petition is filed.
The Automatic Stay/Suggestion of Bankruptcy
The automatic stay begins immediately upon the filing of the bankruptcy petition. It protects the debtor from creditors during the bankruptcy. The stay prohibits the commencement or continuation of judicial proceedings against the debtor as well as all collection efforts. If you are a respondent in a foreclosure or other civil case and you intend to reaffirm the debt to save the property, the attorney will file a Suggestion of Bankruptcy in the civil case. Provide your bankruptcy lawyer a copy of any lawsuits you have received and contact information of the Creditor’s attorney. You should call your bankruptcy attorney upon receiving your 341 Notice to confirm that a Suggestion has been filed. The attorney's filing of a Suggestion of Bankruptcy in your state court case does not necessarily mean that your bankruptcy attorney represents you in such case.
Motion for Relief from Stay
Motion for Relief From Stay is a Motion filed by secured creditors who want to pursue foreclosure of a delinquent secured loan. These Motions are not typically filed in Chapter 13 cases because secured creditors are paid through the Plan. In the event a secured creditor does file a Motion for Relief From Stay these Motions are typically denied as long as the creditor is adequately provided for in the Plan and as long as your payments under the Plan are current.
Handling Creditors After Filing
The Court mails the “341 Notice” to your creditors about one week after the petition is filed.
- If a creditor contacts you after you have received the 341 notice, advise them that you have filed bankruptcy, give them your case number, and ask them to contact the court appointed Trustee or your attorney.
- If you receive any bills after filing, you should mail a copy of the 341 Notice to the creditor that sent you the bill.
- If a creditor continues to call you or write to you after you have advised them of your bankruptcy case number and filing date, make a record of the creditor’s contact including, if possible, the name of the person contacting you, and dates and times of contacts. You may want to keep a log of unauthorized creditor contacts after your bankruptcy filing. If you have a written log or other evidence that a particular creditor has contacted you repeatedly after notification you should call your attorney for assistance.
What is a Trustee and What Does He Do?
The Chapter 13 Trustee advises and assists the debtor in formulating an acceptable Plan, collects your Plan payments, and disburses some or all of the funds to the creditors.
Creditors Meeting with Trustee
A meeting with the Chapter 13 Trustee (“the 341 Meeting”) will be approximately four weeks after you file your bankruptcy. The meeting is held in a meeting room, not the court room, and the federal bankruptcy judge will not be there. You are required to attend the 341 Meeting (if filing jointly, both husband and wife must attend). Your attorney will accompany you and represent you at the meeting, and some creditors may attend as well. At the meeting, the Trustee will hand you payment envelopes with the Trustee’s mailing address and will confirm the date your first payment is due. The Trustee will also point out if there are any changes that need to be made in your Plan through an Amended Plan. Typically, most clients will have to submit one or more amended Plans after creditors file their claims showing precise amounts owed to them.
What if you cannot attend the meeting?
Creditors meetings are scheduled by the Trustee based on the Trustee’s schedule. Your bankruptcy attorney is not able to request a particular meeting date or time. If you are unable to attend the 341 Meeting you should notify your bankruptcy attorney at least one week in advance so your attorney can contact the Trustee for a continuance. The Trustee will reschedule the meeting approximately two weeks after the first date. If you do not attend the second meeting, the Trustee will move to dismiss your case.
Bankruptcy Procedures after the 341 Meeting
At the conclusion of the meeting with your Trustee, creditors are given a limited amount of time to submit claims if they believe you owe them money. Secured creditors almost always file a claim. The creditor’s claim indicates the amount of total debt, including what the creditor believes is the amount of arrearage owed for past payments. The arrearage amount can include past due interest, costs, and attorneys fees to date. Some, but not all, unsecured creditors will also file claims. Your bankruptcy attorney will send you copies of claims for your review. If you believe that a claim is in error, you should let your attorney know because you have the option of objecting to the amount of any claim filed.
The next day following the bar date, the last day creditors have to file claims, your bankruptcy attorney will review all claims filed in your case. Your bankruptcy attorney will likely prepare an amended Plan which includes the amounts set forth in the filed claims subject to any objections which you may have to a particular claim. The next step is a confirmation hearing before the Bankruptcy Judge where your Plan will be reviewed, and confirmed by the Court if it finds it acceptable.
Your attorney will let you know if you have to attend your confirmation hearing. You will have at least 30 days notice of the court date. After your confirmation hearing, if your financial situation should change, you should contact your bankruptcy attorney to discuss whether or not you want to seek a modification of your Plan. Any increase or decrease in your ability to pay may warrant a modification. Modifications can be submitted for approval at any time for the life of your Plan. Chapter 13 Debtors may not incur any new debt after filing the bankruptcy Petition.
Contact a Chapter 13 Attorney at Dominguez & Associates, P.A.
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