OFFICE OF THE CHAPTER 13 TRUSTEE DEBTOR ORIENTATION HANDBOOK “STRIVING FOR FINANCIAL STABILITY THROUGH EDUCATION” FRANK M. PEES STANDING TRUSTEE

Time in Plan is like a Journey FINANCIAL SECURITY

United States Bankruptcy Code Debtors Trustee Creditors Court

Types of Bankruptcies Chapter 7 Chapter 11 Chapter 12 Chapter 13

People Involved in Bankruptcy Debtor Individual or Family filing a bankruptcy Need to file accurate paperwork with the court listing your debts,assets, income and expenses Chapter 13 Trustee Reviews all paperwork Conducts 341 hearing Makes recommendation to Court as to whether case should be confirmed Receives your payments Pays your creditors Will ask for case to be dismissed if no payments Attorney Advises you on everything concerning your bankruptcy Files your paperwork Appears at hearings Negotiates with Creditors Court/Judge Resolves dispute between you and your creditors Can confirm, dismiss or convert your case Grants all discharges Creditors 3 Types of Creditors: Type determines how they are paid in plan

Case Number 05-56779 05-Year that your case was filed 5-Jurisdiction where it was filed 6779-Uniquely yours

Plan Payments: All Payments go directly to a bank lock box for posting, not to the trustee’s office Wage Order: Employer deducts payment from paycheck & sends it to the lock box. You are responsible for making payments until wage order takes effect. If in doubt, check with the employer & with Trustee’s office Direct Payment: Permitted only in certain circumstances. Must be made by cashier’s check or money order with name & case number clearly printed on it & mailed to lock box.

It takes time, but its worth it! Type & Length of Plan Base Plan- Pays 100% on secured & priority debts & the highest percentage possible on unsecured debts. Plan length is five years 100% Plan- Pays all filed claims in full as designated in the plan. Is considered a completed plan whenever this is accomplished, within five years It takes time, but its worth it!

I.R.S You must timely file your taxes each year If you owe IRS in the plan & are due a refund, you will not receive the refund. It will be applied to your IRS debt & the Trustee’s office will be notified to reduce the balance owed. If you do not owe IRS in you plan & are due a refund, you will receive it. It will not go to the Trustee. You will not, however, be eligible for an electronic refund. Anything to do with your taxes will be handled by the Special Procedures Dept.

CYA Remember to…… (Call Your Attorney) If you want to sell anything of Value (house, car, boat, etc. If you want to incur debt If you receive a “lift stay” or any legal papers by mail or hand delivery If you change jobs If you are unable to make your plan payment If you have any legal questions concerning your case (The trustee, including his staff, cannot give you legal advice.)

Automatic Stay Automatic Stay Stay Lift Repossession, Foreclosure and all Creditor contact has to stop Stay Lift Try to take away stay

Re-establishing your credit Plan will help you to re-establish your credit If you do not pay utilities, cable, telephone, etc. on time it will be harder to do so. The Trustee’s Office will help you on a case by case basis.

Mortgage Companies YOU Mortgage Companies take stays seriously, but remember that a stay means a creditor cannot contact you. This does not mean that YOU cannot contact them. Contact your mortgage company once a year to make sure that you are current on your mortgage Don’t let this happen to you forclosure

Things to remember Establish a “file 13”…a real one! Keep all paperwork pertaining to your plan in on secure place. Mail or fax written notification of any change of address. Also, notify your attorney. Notify both the trustee & your Attorney if you change jobs. Maintain insurance on home & vehicles, make timely payments on your home file taxes on time & make plan payments on time If you are making mortgage payments on your home, contact your mortgage company annually, or have your attorney do so, to make sure there have been no changes in the payment or escrow amount due.