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chapter 13 plan summary
Camp Rock 2 Chapter 13
Chapter 13 Plan Base Amount vs Claim Amount?
I filed chapter 13 in 2004. I was told that my plan would be for 5 years…my payments were changed 3 times so that I would meet the 5 yr time frame. When I check my acct summary, I notice that the plan base amount is about $11k less than the claim amount. I never paid it attention, just kept making my payments. A few weeks ago I called my attorney’s office to inquire about possibly refinancing for a buyout. When the assistant went online to check my balance (which I would’ve needed for the refi) She said the trustee made notes that he would be discharging my case 12/07 which corelates with the base plan amount being paid out at that time. What is the difference in those amounts. Why was I told I would be in BK for 5 years? Who should I believe?
not to worry — count your blessing and take the money and run!!! and get out of debt in the future!!!
The Chapter 13 process can be very complicated and a debtor should always seek legal advice to ensure that the case be treated properly. Although each case is different, there is a general timeline that is followed in all cases. A Chapter 13 is a reorganization of debt staff like a Chapter 11 is corporate debt. This means that the debtor will make monthly payments to the trustee for a period of three to five years. This payment is determined by assessing the revenues and expenditures of the debtor. The assumption is that all disposable income will be paid to the trustee to be distributed to creditors. The Trustee will distribute money to creditors based on priority and amount of the creditor's claim. If the debtor makes all payments required under Chapter 13 Plan and any remaining debt is discharged.
When preparing a Chapter 13 bankruptcy, the first thing that the debtor must do is gather the information needed to file their case. Some parts in common information the debtor will need are the tax returns filed in recent years, the last six months of pay statements and information concerning their creditors. The debtor will also have to attend a consultation on credit in the six months prior to filing their case this class can generally be completed online or by phone. Please contact a bankruptcy attorney for a complete list of what information is required to file a Chapter 13 bankruptcy as each case is different.
After gathering information, the debtor's attorney will draft all documents necessary to file the case, including the proposed Chapter 13 Plan. Once everything is in order, the debtor must review and sign documents and the prosecutor will file with the court. The day that a Chapter 13 bankruptcy is filed, an automatic stay goes into place preventing any effort collection by creditors. This means that creditors can not sue, garnish or even call the debtor. The next major step in the process is Meeting of Creditors (aka 341 Meeting). At the meeting of creditors, the debtor will sit down and meet a number of issues for the trustee assigned to their case. The line of questioning will depend on the facts of each case, but the trustee is sure how overall everything has been filed by the debtor and their counsel are true and correct.
Approximately three weeks after the meeting creditors, there will be a confirmation hearing. At the confirmation hearing, the judge presiding over the case will be heard by counsel for the debtor and the Trustee as to all issues. In some cases, the debtor and the opposition are unable to resolve their dispute and it is necessary to take the matter to the hearing so that the judge may resolve it. More often, however, the parties agree and it is not necessary take the matter to hearing. Once all outstanding grievances are resolved by the judge signing the plan and the debtor will make payment as agreed with the trustee.
WARNING: The information contained in this distribution is for informational purposes only. It is not intended to serve legal advice. Your situation may vary and different facts creates different opinion. So do not take legal action based on this content! Always communicate with a lawyer near you. The attorney, by displaying these boards are only permitted in Colorado and then in May there be a dramatic difference in the procedures in any other state. This is not an advertisement for legal services except where authorized by law.
If you are interested in reading more about Denver bankruptcy lawyers or articles by Rob, check out his law firm’s website: Denver Bankruptcy or his blog: Legal Information. Rob Cohen has been working bankruptcy cases in Colorado for the last 8 years. Rob has extensive prior experience in a range of legal areas including civil litigation, contract drafting/disputes, domestic relations, consumer litigation, and real property. Rob continues to actively represents both debtors and creditors in bankruptcy adversary proceedings and uses his range of experience to provide comprehensive legal guidance to the firm’s clients.
