To Do or Not To Do? For Chapter 13 Clients
👍 If you will be paying a mortgage or car payment directly, do continue making each payment on time continuing with the next payment that is due.
👎 Do not fall behind on payments you are supposed to make directly, such as car payments, mortgages, or child support. If you fall behind, the creditor may file a motion for relief from the automatic stay, and it could also jeopardize you getting your discharge.
👍 Do contact our office if you have any questions about your case at any point.
👎 Do not contact the Trustee’s office or the Clerk of Court with questions about your case, as they cannot give you legal advice.
👍 Do make your Chapter 13 plan payment on time each month. The payment is due on the first of each month.
👎 Do not miss a payment. If circumstances cause you to fall behind on payments, please reach out to our office as soon as possible to touch base. The Trustee may file a motion to dismiss your case, but we can normally get up to six months for you to catch up.
👍 Do file your tax returns on time each year. We may need copies of the returns in future years, depending on the type of case you are filing.
👎Do not file tax returns with the improper filing status. For example, if you are married and not separated, it would be improper to file a tax return as “Single” or “Head of household.”
👍 Do contact our office if you have questions about purchasing, selling, or otherwise disposing of property.
👎 Do not incur debt, purchase new property, sell property, or give away property without first contacting our office. Court approval may be required.
👍 Do fully disclose all assets and debts to our office and on your bankruptcy documents.
👎 Do not leave off any property or debts. Be sure you have disclosed everything. The bankruptcy code requires you list all property and all debts, and failure to do so could result in criminal and civil penalties or jail time.
👍 Do list all income.
👎 Do not leave out any income. It is very important that you have disclosed all sources of income on your bankruptcy schedules.
👍 Do keep your insurance current for vehicles, homes, etc.
👎 Do not continue paying secured debts for property that you are “surrendering” (i.e. giving back to the creditor).
👍 Do continue paying typical household bills for services you intend to keep, such as light bills, cable bills, cell phone bills, etc.
👍 If possible, do adjust your withholding to minimize the amount of tax refund you receive during tax season, so that you get more of your wages throughout the year.
👍 Do update our office if you experience a substantial increase or decrease in income or expenses during your case.
👍 Do report to our office if you become entitled to an inheritance or life insurance proceeds at any point during your case.
👍 Do report to our office if you receive any lottery winnings during your case.
👍 Do write your case number on any payment you send to the Trustee by mail.
👍 Do set up an account with the National Data Center: https://www.ndc.org/debtor-registration-instructions. This will allow you to monitor your case through an online portal.
👍 Do set up an account with TFS Bill Pay: https://www.tfsbillpay.com/signup. This will allow you to submit online payments conveniently and securely.
👍 Do keep us updated with any changes to your address, phone number, or other contact information.
👍 If you receive communications from creditors after your case is filed, do tell them you have filed, give them your case number, tell them to contact our office, and report the contact to our office.
👍 Do immediately contact our office if an insurance claim arises regarding a vehicle or your home. We may need to file various motions in your case. For example, if you total a vehicle that is being paid through the plan, we will need to modify your plan accordingly.
👍 Do immediately alert our office if you discover a personal injury or workers compensation claim that you may have against someone else.
👍 Do allow Kimberly to assist you with questions or concerns that may arise during your case. There are times when I am unavailable (in court, meeting with another client, etc.), and Kimberly is able to expedite handling concerns you may have. She will be more than happy to schedule a telephone conference for you to talk with me if needed.
👍 Do understand that our goal is to confirm your plan with the lowest possible payment allowed under the law. However, occasionally a creditor files a claim in an amount higher than you may have anticipated, which may cause your plan payment to change during your case. If the Trustee advises that your payment must increase for some reason, rest assured that we have reviewed the Trustee’s calculations and will only recommend that you agree to the increase if we have independently confirmed the Trustee’s calculations.