What are the procedures of a Chapter 13 Bankruptcy?

Chapter 13 does have similar procedural requirements to a chapter 7, however, chapter 13 also has additional filing and payment requirements. Like a chapter 7 bankruptcy, in a chapter 13 a debtor must file a complete bankruptcy petition, schedules, declarations, creditor course, financial management course and all other documents.

In addition to the bankruptcy petition, schedules and other routinely required documents, the debtor must also serve and prepare a chapter 13 plan of creditors upon all existing creditors. In this plan, the debtor would indicate its intention to repay any amount under the plan, and also classify its outstanding balances accordingly.

In addition to the plan of reorganization, a debtor intending to keep any financed property such as a car or home, must also remain current on post-petition payments. In other words, after the petition is filed, in order to try and keep any property through the plan, the debtor must remain current with the obligations that are due after the plan is filed. This can be paid either outside the plan or within the plan.

Once paid, these items need confirmed by evidence of payment through a declaration filed with the court. All payments made to the trustee or creditors after the petition is filed need to be accompanied with a certified mailing receipt and proof of payment (i.e.: copy of check, stub from cashier’s check, electronic payment receipt).

Similarly to payments to creditors indicated above, the debtor must also remain current on all plan payments. Plan payments are due every month on the date which the bankruptcy petition was filed. Each respective trustee has a PO Box or specific payment procedure in place for payments to be made. These amounts are recorded and often times available online, however, it is important to include your case number and your name on your plan payments in order for the trustee to properly apply them to your matter.