Do's and Don't - Chapter 13 Debtors

The information contained herein is only to inform the public and does not create an attorney client relationship with the reader. You should always consult an attorney when seeking legal advice.

The Do's

Do pay on time and according to your plan.
Do make your plan payments payable to the Chapter 13 Trustee. The Trustee varies by county.
Do make your first payment within 30 days of the plan filing. See 11 U.S.C. § 1326(a)(1).
Do consider that the Bankruptcy Code prohibits all private and public employers from terminating employees or otherwise discriminating against employees solely because they filed for bankruptcy. See 11 U.S.C. §§ 525(a), 525(b).
Do make your payments in certified funds – i.e., money order, postal order, cashier’s check, or certified check. The Trustee will not accept cash, personal checks, or a check from the debtor’s business account.
Do write the Debtor(s)’ name(s) and their Chapter 13 bankruptcy case number on all payments.
Do make a habit of keeping pay stubs and receipts to prove payments were made.
Do immediately notify – in writing – Attorney Uhl and the Chapter 13 Trustee whenever you change your address, telephone numbers, or employment status.
Do read, review, and keep a copy of your bankruptcy schedules, statement of affairs, plan(s), and other documents filed on your behalf.
Do cooperate with Attorney Uhl so that he can protect your interests by complying in a timely manner with all of the requirements of the Bankruptcy Code and Local Bankruptcy Rules.
Do thoroughly read and review the “Trustee’s Reports”, and contact Attorney Uhl or the Trustee’s office if you have questions or concerns. Twice a year, usually in October and in April, the Trustee will send a “Trustee’s Report” which shows the payments the Trustee has received from you, a list of your creditors, the amount the creditors have indicated is owed to them, the amount that is still to be paid to the creditor, and the payments the Trustee has made to each creditor. The Trustee will assume that the report is correct if you or Attorney Uhl do not contact her about problems or questions.

The Do Not's

Do not expect the Trustee to give you permission to miss your payments. The Trustee does not have authority under any circumstances to allow you to miss a payment or pay less than the plan requires. Trustee will file a motion to dismiss whenever a regular payment has not been made.
Do not make any payments to creditors unless the plan(s) say that you are expected to pay a particular creditor directly and not through the Trustee’s office. (For example, it is generally accepted in this jurisdiction that debtors are responsible themselves to make their regularly monthly mortgage payments. The Chapter 13 Trustee’s Office does not make them.)
Do not expect the Trustee to make any payments to your creditors until the Chapter 13 plan is confirmed (approved) by the Court. See 11 U.S.C. § 1326(a)(2).
Do not buy anything on credit or use credit cards without Attorney Uhl’s advice and court permission while in a Chapter 13 bankruptcy.
Do not sell or dispose of any of your property – such as a car or house – without contacting Attorney Uhl and obtaining court permission, during the course of your Chapter 13 bankruptcy.
Do not contact the Trustee’s office to obtain your titles as this is not within her authority under the Bankruptcy Code. You must contact the creditor holding the title to obtain titles.

<<Back