Chapter 13 bankruptcy can help when you feel like your financial life is spinning out of control.
This option allows you to keep your property, while continuing to pay
back all or a portion of your debts within a three to five-year time period.
As you go through the process, you will be required to submit many documents,
create a repayment plan, and follow through on your end of the deal. In
order to be successful in your bankruptcy, you need to be cognizant of
the documentation you may receive once your plan is confirmed.
Proof of Claims
When a creditor wants to assert their right to receive a payout from the
bankruptcy, they must submit a proof of claims. This written statement
notifies all interested parties, including the court, the trustee, and
the debtor, of their wish. The document must be submitted by the claims
deadline to in order for the creditor to receive payment through your
Chapter 13 payment plan.
Following your first creditor meeting, you should receive your copies of
proofs of claims within 90 days. Should you find information you dispute
on the creditor’s claim, contact your attorney.
trustee’s office sends ledgers to you. This document details your payment history, along
with the payment date and method showing that the trustee has paid each
creditor. Take time to look over the statement to make sure the information
matches up with your bankruptcy schedules. Also, watch the amounts to
make sure they are close to your estimates. Otherwise, you may have to
amend your payment plan to complete it within the time allotted. If you
notice any discrepancies, immediately contact your trustee or attorney.
During your Chapter 13 bankruptcy, many things can happen. Your trustee
may wish to dismiss your case if you haven’t filed the proper documents.
One of your creditors may not agree with your plan. Your mortgage lender
may file a motion for relief from stay. It is crucial to pay attention
to this documentation and contact your attorney right away.
Being successful in your Chapter 13 bankruptcy does take some effort. Stay
on top of any documentation you receive to assure you stay in compliance
with the court. Want to learn more? Don't hesitate to
contact our office.