Chapter 13 FAQ

Melnyk Law Firm, P.C.

7436 Broad River Rd 803-732-7800
Building 1, Suite 110 803-732-0219 FAX
Irmo, SC 29063 david@melnyklawfirm.com

Postal Address:
P.O. Box 687
Irmo, SC 29063

Chapter 13 FAQ

1. When does my Trustee payment begin?
2. When does my mortgage payment begin?
3. Where do I send my mortgage payment?
4. My mortgage company isn’t sending me statements!
5. It has been one months since I filed, and Trustee payments have not begun coming out yet!
6. What is the Trustee Hearing?
7. What if I cannot attend the Hearing?
8. What do I bring to the Hearing?
9. What will the Trustee ask?
10. Why did my Chapter 13 payment increase?
11. What if my Chapter 13 payment increases before the Confirmation Hearing?
12. Do I continue making my car payments?
13. I am still getting calls from creditors. What do I do?
14. Do I attend the Confirmation Hearing? What is it?
15. What do I do if I change jobs?
16. Can I pay my Plan off early?
17. How can I track my Trustee payments?
18. Is it possible to convert a Chapter 13 to a Chapter 7?
19. What happens if I fall behind on my Trustee payments?
20. Can I petition the Trustee to have my payments stopped for a few months?
21. What happens if my Chapter 13 has been dismissed?
22. I need a loan. What do I do?
23. My child support arrearages are in the Plan. Do I need to continue making payments?
24. My car is in the Plan. When do I get the car title?
25. What happens if I fall behind on my mortgage payments while I am in a Chapter 13 plan?

1. When does my Trustee payment begin?
Your Trustee payments will begin roughly 3-4 weeks after you file. It is your responsibility to make sure the payments are being deducted from your pay stub. If they are not, please call the case administrator handling your case immediately.

2. When does my mortgage payment begin?
The “resumption date” of your mortgage payment is listed on your Chapter 13 plan. Generally it is due the first of the next month if filed before the 16th. If filed on the 16th or afterwards, it is due the first of the following month.

3. Where do I send my mortgage payment?
Send your mortgage payment to the same address you have been making payments unless told otherwise. I recommend for at least the first few months you send your payments certified mail in case there is some dispute.

4. My mortgage company isn’t sending me statements!
This is a common complaint. However, you are still responsible for making your payments on time. Many times the mortgage company will resume sending statements if you send them a letter asking them to do so.

5. It has been one months since I filed, and Trustee payments have not begun coming out yet!
You are still responsible for getting your payments in, even if they are not yet being deducted from your pay. Please call the Trustee’s administrator handling your case immediately!

6. What is the Trustee Hearing?
The Trustee Hearing (also known as the 341 Meeting of Creditors) is where the Trustee handling your case asks certain questions to make sure you qualify for a Chapter 13 and to question you about possible assets. The Hearing also allows creditors to come and ask questions, although creditors often do not come. Please note that enclosed is a list of possible questions the Trustee might ask.

7. What if I cannot attend the Hearing?
Call me immediately! Your case may be dismissed if you miss your Hearing. If I know in advance, I may be able to obtain another hearing date.

 

8. What do I bring to the Hearing?
Please bring your social security card and driver’s license.

9. What will the Trustee ask?
Please look at the enclosed handout.

10. Why did my Chapter 13 payment increase?
Please remember that the initial Plan submitted is only a proposal and an estimate of what the Plan payment will be. Many things can increase the Plan payment including: higher than expected mortgage arrearages, tax arrearages, and objections from car lien holders.

11. What if my Chapter 13 payment increases before the Confirmation Hearing?
Please note that you are responsible for all payments even if your Chapter 13 Plan goes up before confirmation. So, if your plan goes up $15.00 before confirmation, you are responsible for making the increased payment for all the months leading up to the confirmation.

12. Do I continue making my car payments?
It depends on whether your car payment is in the Plan. Most likely it is – so don’t make it! If you are unsure, look at your Plan or ask!

13. I am still getting calls from creditors. What do I do?
Please set pencil and paper beside the phone after filing. Do not speak to creditors unless they provide you their name, who they work for, and their phone number. Then give them the bankruptcy case number and my information. If they call you again, please contact me.

14. Do I attend the Confirmation Hearing? What is it?
Most likely not. I will tell you if you need to attend.

15. What do I do if I change jobs?
Call the Trustee administrator handling your case with the new job address.

16. Can I pay my Plan off early?
DO NOT TRY TO PAY OFF EARLY WITHOUT SPEAKING WITH ME FIRST!

17. How can I track my Trustee payments?
You can track your payments on the internet. Simply go to 13network.com.

18. Is it possible to convert a Chapter 13 to a Chapter 7?

Yes. Sometimes it is not pratical to stay in a Chapter 13. Feel free to ask me if you have questions.

19. What happens if I fall behind on my Trustee payments?
The Trustee usually will send a letter to you stating that your case will be dismissed within twenty (20) days if payments are late and you do not call to arrange payments.

20. Can I petition the Trustee to have my payments stopped for a few months?
Yes. This is called a Moratorium of payments. The trustee usually wants you to be in a Chapter 13 for at least a year before filing a motion. The Moratorium of payments usually can last for 1 to 3 months to assist you while you try to find new employment.

21. What happens if my Chapter 13 has been dismissed?
Please call me. I may have options for you such as filing a Motion to Reconsider.

22. I need a loan. What do I do?
Please call me first.

23. My child support arrearages are in the Plan. Do I need to continue making payments?
Absolutely!

24. My car is in the Plan. When do I get the car title?
After you finish the Plan, the finance company will send you your title.

25. What happens if I fall behind on my mortgage payments while I am in a Chapter 13 plan?
Most likely I will be able to object to the creditor’s Motion to life the automatic stay. In most cases we can reach an agreement to have you catch up over a six month period.