Dealing with Changes During Your Bankruptcy Case

Section 5: Dealing with Changes During Your Case

Life doesn’t stop when you file for bankruptcy, and changes are bound to occur. We will guide you on handling various changes that might occur during your bankruptcy case.

What should I do if I change my financial circumstances while in my case?

Taking immediate action is essential if you experience a change in your financial circumstances during your bankruptcy case. This could be an increase or decrease in your income, an expense change, or a new financial obligation. Here’s what you should do:

4. Notify Your Attorney: The first step is to inform your bankruptcy attorney about the change. They can guide how to proceed based on your circumstances and local bankruptcy laws. If you have a change in financial circumstances during the term of your Chapter 13 plan, you must disclose the change to us in writing by sending a letter or e-mail to your attorney or paralegal as soon as possible.
5. Document the Change: Gather all relevant documentation that shows the change in your financial situation. This could include pay stubs, bills, or other documents that reflect your income or expenses change.
6. Amend Your Bankruptcy Forms: Depending on the nature of the change, you may need to amend your bankruptcy forms to reflect your new financial situation. This could include income and expense forms, financial affairs statements, or bankruptcy schedules. Following the disclosure of this information in writing, you must call and schedule an appointment with your attorney or paralegal to sign and submit any required documents. Typically, disclosing these changes requires signing and filing amended schedules and submitting documents to verify the changes with Court and the Chapter 13 Trustee. Simply notify our office staff without scheduling an appointment to meet with your attorney or paralegal to sign and submit any required documents will not be deemed sufficient disclosure and could result in you being accused by the Trustee or a Creditor of fraud, result in a denial of discharge of your debts, and dismissal or conversion of your bankruptcy case.
7. Change Your Payment Plan: If you’re in a Chapter 13 bankruptcy, a significant change in your financial circumstances may require a modification of your payment plan. This could mean increasing or decreasing your monthly payments, extending the length of your plan, or even converting your case to a Chapter 7 bankruptcy.
8. Attending a Hearing is typically Not Required: If you need to change your payment plan, you only have to attend a hearing before the Bankruptcy Court if advised otherwise. A Court hearing is typically only needed if some unresolved objection requires your testimony. These issues rarely arise, but if they do, the judge will review your proposed changes at this hearing and either approve or deny your request.
9. Continue to Comply with Bankruptcy Requirements: Even with a change in your financial circumstances, it’s essential to continue complying with all bankruptcy requirements. This includes making your plan payments on time, attending all required meetings and hearings, and completing your credit counseling courses.

Remember, this is a general overview; the specifics can vary based on your circumstances and local laws. If you’re a current client and have questions, try looking through these answers first; they’re made to answer frequent questions, but your specific situation may vary. If you still need help, call the office at the top of this page nearest you or email your paralegal directly. Our team is ready to help you; if needed, we can set up a meeting with your attorney. Always consult with your bankruptcy attorney for personalized advice.

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What if I lose my job during my Chapter 13 case?

Losing your job during a Chapter 13 bankruptcy can be stressful, but knowing you have options and resources is essential. Here’s what you should do:

1. Inform Your Attorney: The first step is to inform your bankruptcy attorney about your job loss as soon as possible. They can guide you on the best course of action based on your circumstances. If you have a change in financial circumstances during the term of your Chapter 13 plan, you must disclose the change to us in writing by sending a letter or e-mail to your attorney or paralegal as soon as possible.
2. Document Your Job Loss: Gather all relevant documentation related to your job loss, such as a termination letter or unemployment benefits. This will be important for any adjustments that may need to be made to your bankruptcy plan.
3. Consider Modifying Your Payment Plan: If your income has significantly decreased due to job loss, you may be able to change your Chapter 13 payment plan. This could involve reducing your monthly payments or extending the length of your plan. Your attorney can help you with this process. Depending on the nature of the change, you may need to amend your bankruptcy forms to reflect your new financial situation. This could include income and expense forms, financial affairs statements, or bankruptcy schedules. Following the disclosure of this information in writing, you must call and schedule an appointment with your attorney or paralegal to sign and submit any required documents. Typically, disclosing these changes requires signing and filing amended schedules or submitting documents to verify the changes with Court or the Chapter 13 Trustee. Simply notify our office staff without scheduling an appointment to meet with your attorney or paralegal to sign and submit any required documents will not be deemed sufficient disclosure and could result in you being accused by the Trustee or a Creditor of fraud, result in a denial of discharge of your debts, or dismissal or conversion of your bankruptcy case.
4. Consider Converting to Chapter 7: If your financial situation has drastically changed and you can no longer afford your Chapter 13 payments, converting your case to a Chapter 7 bankruptcy might be a choice. In a Chapter 7 bankruptcy, most of your unsecured debts can be discharged or wiped out. However, this choice has its considerations, so discussing this with your attorney is essential.
5. Explore Other Options: If changing your plan or converting to Chapter 7 isn’t feasible or desirable, other options may be available. This could include seeking new employment, cutting non-essential expenses, or exploring debt relief options outside Bankruptcy.

Remember, this is a general overview of circumstances and local laws. If you’re a current client and have questions, try looking through these answers first; they’re made to answer frequent questions, but your specific situation may vary. If you still need help, call the office at the top of this page nearest you or email your paralegal directly. Our team is ready to help you; if needed, we can set up a meeting with your attorney. Always consult with your bankruptcy attorney for personalized advice.

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If my income decreases, can I lower my Chapter 13 payment?

If your income decreases during a Chapter 13 bankruptcy, it may be possible to lower your monthly payment. Here’s how:

1. Inform Your Attorney: As soon as you notice a decrease in your income, inform your bankruptcy attorney. They can guide the following steps and help you understand how this change might affect your bankruptcy plan. If you have a change in financial circumstances during the term of your Chapter 13 plan, you must disclose the change to us in writing by sending a letter or e-mail to your attorney or paralegal as soon as possible.
2. Document Your Income Change: Gather all relevant documentation showing your income decrease. This could include recent pay stubs, a letter from your employer, or unemployment benefits statements.
3. Request a Plan Modification: Your attorney can help you file a motion to change your Chapter 13 plan. This motion will explain the change in your circumstances and propose a new, lower monthly payment that reflects your current income. Depending on the nature of the change, you may need to amend your bankruptcy forms to reflect your new financial situation. This could include income and expense forms, financial affairs statements, or bankruptcy schedules. Following the disclosure of this information in writing, you must call and schedule an appointment with your attorney or paralegal to sign and submit any required documents. Typically, disclosing these changes requires signing and filing amended schedules or submitting documents to verify the changes with Court or the Chapter 13 Trustee. Simply notify our office staff without scheduling an appointment to meet with your attorney or paralegal to sign and submit any required documents will not be deemed sufficient disclosure and could result in you being accused by the Trustee or a Creditor of fraud, result in a denial of discharge of your debts, or dismissal or conversion of your bankruptcy case.
4. Attending a Hearing is typically Not Required: If you need to change your payment plan, you only have to attend a hearing before the Bankruptcy Court if advised otherwise. A Court hearing is typically only needed if some unresolved objection requires your testimony. These issues rarely arise, but if they do, the judge will review your proposed changes at this hearing and either approve or deny your request.
5. Continue Making Payments: Until the judge approves your modification, continue making your current plan payments to the best of your ability. If you cannot make total payments, pay as much as possible and keep your attorney informed.

Remember, this is a general overview of circumstances and local laws. If you’re a current client and have questions, try looking through these answers first; they’re made to answer frequent questions, but your specific situation may vary. If you still need help, call the office at the top of this page nearest you or email your paralegal directly. Our team is ready to help you; if needed, we can set up a meeting with your attorney. Always consult with your bankruptcy attorney for personalized advice.

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What do I do if I get a significant raise, get a new position, get a new job, or change employers while I am in my case?

If you experience an income increase, get a new job, or change employers during your Chapter 13 bankruptcy case, it’s essential to understand the potential implications and steps to take:

1. Inform Your Attorney: As soon as you notice an increase in your income, inform your bankruptcy attorney. They can guide the following steps and help you understand how this change might affect your bankruptcy plan. If you have a change in financial circumstances during the term of your Chapter 13 plan, you must disclose the change to us in writing by sending a letter or e-mail to your attorney or paralegal as soon as possible.
2. Document Your Income Change: Gather all relevant documentation showing your income increase. This could include recent pay stubs, a letter from your employer, or an employment contract.
3. Review Your Payment Plan: An increase in income could affect your Chapter 13 payment plan. Your attorney can help you review your current plan and decide if any adjustments are necessary.
4. Report the Change to the Trustee: In a Chapter 13 bankruptcy, you must report any significant financial situation changes to the trustee. This includes income increases. Your attorney can help you with this process. Depending on the nature of the change, you may need to amend your bankruptcy forms to reflect your new financial situation. This could include income and expense forms, financial affairs statements, or bankruptcy schedules. Following the disclosure of this information in writing, you must call and schedule an appointment with your attorney or paralegal to sign and submit any required documents. Typically, disclosing these changes requires signing and filing amended schedules or submitting documents to verify the changes with Court or the Chapter 13 Trustee. Simply notify our office staff without scheduling an appointment to meet with your attorney or paralegal to sign and submit any required documents will not be deemed sufficient disclosure and could result in you being accused by the Trustee or a Creditor of fraud, result in a denial of discharge of your debts, or dismissal or conversion of your bankruptcy case.
5. Attend a Hearing if Necessary: If your income increase is significant, the trustee or a creditor might request a hearing to review your payment plan. If this happens, your attorney can be you at the hearing and advocate for a fair and manageable payment plan.

Remember, this is a general overview of circumstances and local laws. If you’re a current client and have questions, try looking through these answers first; they’re made to answer frequent questions, but your specific situation may vary. If you still need help, call the office at the top of this page nearest you or email your paralegal directly. Our team is ready to help you; if needed, we can set up a meeting with your attorney. Always consult with your bankruptcy attorney for personalized advice.

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Am I required to report my income increases in my Chapter 13 or Chapter 7 case?

In both Chapter 7 and Chapter 13 bankruptcy cases, it’s crucial to maintain transparency about your financial situation, which includes reporting any significant changes in your income.

Here’s what you need to know:

Chapter 7 Bankruptcy: In a Chapter 7 bankruptcy, your income at the filing time matters most. This is because Chapter 7 is designed to help those who don’t have enough disposable income to repay their debts. If you receive a significant raise after filing but before closing your case, you should report it to your attorney. However, it’s likely to affect your case if it’s a substantial amount that could move you from a no-asset case (where creditors receive nothing) to an asset case (where creditors could receive some payment).

Chapter 13 Bankruptcy: In a Chapter 13 bankruptcy, you must repay some of your debts through a repayment plan. This plan is based on your income, expenses, and types of debt. If your income increases while you’re in a Chapter 13 case, you’re generally required to report this to the bankruptcy trustee. The trustee may adjust your repayment plan based on your new income level. It’s important to note that only some of your extra income will go toward your debts. Your necessary living expenses are considered, and only your disposable income — the income left after these expenses — is considered for repayment purposes.

General Duty to Disclose:  If any significant changes occur during your case, you must disclose their occurrence to us in writing by sending a letter or e-mail to your attorney or paralegal as soon as possible. Following the disclosure of this information in writing, you must call and schedule an appointment with your attorney or paralegal to sign and submit any required documents. Typically, disclosing these changes requires signing and filing amended schedules or submitting documents to verify the changes with the Court or the Trustee. Simply notify our office staff without scheduling an appointment to meet with your attorney or paralegal to sign and submit any required documents will not be deemed sufficient disclosure and could result in you being accused by the Trustee or a Creditor of fraud, result in a denial of discharge of your debts, or dismissal or conversion of your bankruptcy case.

Remember, this is a general overview of circumstances and local laws. If you’re a current client and have questions, try looking through these answers first; they’re made to answer frequent questions, but your specific situation may vary. If you still need help, call the office at the top of this page nearest you or email your paralegal directly. Our team is ready to help you; if needed, we can set up a meeting with your attorney. Always consult with your bankruptcy attorney for personalized advice.

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What happens if I get married during my Chapter 13 case?

Getting married during a Chapter 13 bankruptcy case can have implications for you and your spouse, especially in a community property state like Louisiana. When you marry, your spouse’s income becomes part of the household income, potentially affecting your Chapter 13 repayment plan. In Louisiana, a community property state, all income earned and assets bought during the marriage are generally considered community property, owned equally by both spouses.

If you’re already in a Chapter 13 bankruptcy case when you get married, your new spouse’s income might be considered in determining your ability to pay your debts. This could increase your monthly plan payments. However, your new spouse’s assets are typically not part of your bankruptcy estate unless jointly owned. This means that your spouse’s separate property is usually not at risk.

However, it’s important to note that your spouse’s income could be considered “disposable income” to pay your creditors. This could affect the amount you must pay into your Chapter 13 plan each month. If your spouse has a significant income, this could make your Chapter 13 plan unaffordable.

On the other hand, if your spouse has many debts, their payments could be considered necessary expenses, which could lower your disposable income and possibly your plan payments. It’s also possible that your spouse’s income could make you ineligible for Chapter 13 and force you into a Chapter 7 case involving liquidating assets to pay creditors.

Suppose you’re considering getting married while in a Chapter 13 bankruptcy case; it’s crucial to consult with your bankruptcy attorney. They can recommend the potential impacts and help you navigate any changes that might need to be made to your bankruptcy plan.

Remember, this is a general overview of circumstances and local laws. If you’re a current client and have questions, try looking through these answers first; they’re made to answer frequent questions, but your specific situation may vary. If you still need help, call the office at the top of this page nearest you or email your paralegal directly. Our team is ready to help you; if needed, we can set up a meeting with your attorney. Always consult with your bankruptcy attorney for personalized advice.

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What happens if my spouse dies during my Chapter 13 case?

When a spouse dies during a Chapter 13 bankruptcy case, it can be a challenging and emotional time. The impact on the bankruptcy case can vary based on several factors. Here’s a general overview to help you understand the possible scenarios:

1. Continuation of the Case: If the deceased spouse was the only one who filed for Bankruptcy, the case might continue if it is in the estate’s best interest. The executor or administrator typically makes this decision for the deceased’s estate.
2. Dismissal of the Case: In some situations, the bankruptcy case may be dismissed upon the debtor’s death. However, this is not automatic and usually requires a motion to dismiss to be filed with the Court.
3. Hardship Discharge: If the debtor was on a Chapter 13 repayment plan and had made noteworthy progress, the Court might grant a “hardship discharge.” This discharge is like the discharge received at the end of a completed Chapter 13 plan, relieving the debtor of their remaining debts.
4. Modification of the Chapter 13 Plan: If the bankruptcy case was filed jointly with a spouse, the surviving spouse could continue with the bankruptcy case on their own. They may also be able to change the repayment plan based on their current income and expenses.

Remember, this is a general overview of circumstances and local laws. If you’re a current client and have questions, try looking through these answers first; they’re made to answer frequent questions, but your specific situation may vary. If you still need help, call the office at the top of this page nearest you or email your paralegal directly. Our team is ready to help you; if needed, we can set up a meeting with your attorney. Always consult with your bankruptcy attorney for personalized advice.

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What do I do if involved in a personal injury case while in Bankruptcy?

If you’re involved in a personal injury case while in Bankruptcy, it’s crucial to immediately communicate this to your bankruptcy attorney. Personal injury claims can be considered an asset in your bankruptcy case, and how it’s handled can vary depending on the specifics of your situation and the bankruptcy laws in your state. You must disclose their occurrence to us in writing by sending a letter or e-mail to your attorney or paralegal as soon as possible. Following the disclosure of this information in writing, you must call and schedule an appointment with your attorney or paralegal to sign and submit any required documents. Typically, disclosing these changes requires signing and filing amended schedules or submitting documents to verify the changes with the Court or the Chapter 13 Trustee. Simply notify our office staff without scheduling an appointment to meet with your attorney or paralegal to sign and submit any required documents will not be deemed sufficient disclosure and could result in you being accused by the Trustee or a Creditor of fraud, result in a denial of discharge of your debts, or dismissal or conversion of your bankruptcy case.

During the time your bankruptcy is pending, you must promptly disclose in writing on Schedule A/B or the Statement of Financial Affairs all your rights to lawsuits, rights to sue someone else, claims against someone else, causes of action, or if you have hired or plan to hire a lawyer other than us to represent you in any way. Failure to promptly disclose in writing, sign, and file a Schedule A/B or an amended Schedule A/B disclosing all rights you have or later acquire to any lawsuits, claims, or causes of action will likely result in you permanently losing your rights to those lawsuits, claims, or cause of action. Failure to list, sign and file a Schedule A/B or an amended Schedule A/B disclosing any claims, lawsuits, rights to sue, or causes of action you have at the time of filing or incur during the time your bankruptcy is pending may also result in you being accused by the Trustee or a Creditor of fraud resulting in a denial of discharge of your debts or dismissal or conversion of your bankruptcy. If you hire an attorney to represent you regarding any claim, right to sue, lawsuit, or cause of action, you must disclose to us in writing the name of the attorney(s) you hire, and you must inform the attorney(s) that you are in active bankruptcy. Lawsuits, Claims, and Causes of Action include but are not limited to the following:

• Personal Injury Claims
• Motor Vehicle Accident Claims
• Wrongful Death Claims for the loss of a loved one or relative
• Medical Malpractice Claims
• Medical reimbursement claims caused by someone’s negligence
• Worker’s Compensation Claims
• Unemployment Claims
• Wrongful Termination Claims
• Sexual Harassment Claims
• Class Action Claims

In some cases, you may be able to exempt a part of your personal injury settlement from your bankruptcy estate, meaning it won’t be used to pay your creditors. However, this depends on the exemption laws in your state and the nature of your injury claim. For example, some states allow you to exempt a certain amount of compensation for bodily injury but not for pain and suffering or punitive damages.

Suppose your personal injury claim is not exempt. In that case, the bankruptcy trustee may have the right to take control of the lawsuit, negotiate a settlement, and distribute the funds to your creditors. This could leave you with little compensation for your personal injury claim.

It’s also important to note that if you receive a personal injury settlement after you’ve filed for Bankruptcy but before your case is discharged, you may be required to amend your bankruptcy filings to include the settlement as an asset. Not doing so could lead to complications in your bankruptcy case, including potential allegations of bankruptcy fraud.

Remember, this is a general overview of circumstances and local laws. If you’re a current client and have questions, try looking through these answers first; they’re made to answer frequent questions, but your specific situation may vary. If you still need help, call the office at the top of this page nearest you or email your paralegal directly. Our team is ready to help you; if needed, we can set up a meeting with your attorney. Always consult with your bankruptcy attorney for personalized advice.

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What do I do if I acquire a new asset while I am in my Chapter 13 case? 

If you acquire a new asset during your Chapter 13 bankruptcy case, it’s crucial to understand the potential implications and the steps you need to take. Chapter 13 bankruptcy, often referred to as a wage earner’s plan, allows individuals with regular income to develop a plan to repay all or part of their debts. During this process, debtors propose a repayment plan to make installments to creditors over three to five years.

When you file for Chapter 13 bankruptcy, you create a bankruptcy estate that includes all your property and assets. This estate is overseen by a bankruptcy trustee, who ensures your creditors receive as much payment as possible. If you acquire a new asset after filing for Bankruptcy, such as an inheritance, a gift, or a lottery win, this asset may become part of your bankruptcy estate.

Here’s what you should do if you acquire a new asset during your Chapter 13 case:

4. Notify Your Attorney: The first step is to inform your bankruptcy attorney. They can supply specific advice based on your situation and local bankruptcy laws. If you have acquired a new asset during your Chapter 13 plan term, you must disclose the change to us in writing by sending a letter or e-mail to your attorney or paralegal as soon as possible.
5. Disclose the Asset: You must show the bankruptcy court and your trustee any new assets. This includes assets acquired through inheritance, gifts, lottery winnings, or other means. You must disclose the acquisition to us in writing by sending a letter or e-mail to your attorney or paralegal as soon as possible.
6. Amend Your Bankruptcy Schedules: If necessary, your attorney may need to amend your bankruptcy schedules to include the new asset. Following the disclosure of the asset in writing, you must call and schedule an appointment with your attorney or paralegal to sign and submit any required documents. Typically, disclosing these assets requires signing and filing amended schedules or submitting documents to verify the changes with the Court or the Chapter 13 Trustee. Simply notify our office staff without scheduling an appointment to meet with your attorney or paralegal to sign and submit any required documents will not be deemed sufficient disclosure and could result in you being accused by the Trustee or a Creditor of fraud, result in a denial of discharge of your debts, or dismissal or conversion of your bankruptcy case.
7. Review Your Repayment Plan: Depending on the new asset’s value, it may affect your Chapter 13 repayment plan. Your attorney can help you understand how the new assets might affect your plan and whether any changes are necessary.

Remember, this is a general overview of circumstances and local laws. If you’re a current client and have questions, try looking through these answers first; they’re made to answer frequent questions, but your specific situation may vary. If you still need help, call the office at the top of this page nearest you or email your paralegal directly. Our team is ready to help you; if needed, we can set up a meeting with your attorney. Always consult with your bankruptcy attorney for personalized advice.

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What happens if I inherit property or money while in Chapter 13?

When navigating through a bankruptcy process, whether Chapter 7 or Chapter 13, and you suddenly inherit property or Money, it can introduce a new layer of complexity to your case. Here’s what you need to know about how this situation is typically handled.

For Chapter 7 bankruptcy, the rules are straightforward. If you become entitled to an inheritance within 180 days of filing your bankruptcy petition, that inheritance becomes part of your bankruptcy estate. This means the bankruptcy trustee can use it to pay off your creditors. It doesn’t matter when you receive the inheritance; what matters is the date of the deceased’s death. If it falls within the 180-day window, the inheritance is considered part of the bankruptcy estate.

In contrast, Chapter 13 bankruptcy is a bit more complicated. Chapter 13 involves a repayment plan where you pay back some of your debts over three to five years. If you receive an inheritance during a Chapter 13 bankruptcy, the Court may require you to amend your repayment plan to include the inherited assets. This could result in higher payments to your creditors.

Here’s what you should do if you acquire a new asset during your bankruptcy case:

4. Notify Your Attorney: The first step is to inform your bankruptcy attorney. They can supply specific advice based on your situation and local bankruptcy laws. If you have acquired a new asset during your Chapter 13 plan term, you must disclose the change to us in writing by sending a letter or e-mail to your attorney or paralegal as soon as possible.
5. Disclose the Asset: You must show the bankruptcy court and your trustee any new assets. This includes assets acquired through inheritance, gifts, lottery winnings, or other means. You must disclose the acquisition to us in writing by sending a letter or e-mail to your attorney or paralegal as soon as possible.
6. Amend Your Bankruptcy Schedules: If necessary, your attorney may need to amend your bankruptcy schedules to include the new asset. Following the disclosure of the asset in writing, you must call and schedule an appointment with your attorney or paralegal to sign and submit any required documents. Typically, disclosing these assets requires signing and filing amended schedules or submitting documents to verify the changes with the Court or the Trustee. Simply notify our office staff without scheduling an appointment to meet with your attorney or paralegal to sign and submit any required documents will not be deemed sufficient disclosure and could result in you being accused by the Trustee or a Creditor of fraud, result in a denial of discharge of your debts, or dismissal or conversion of your bankruptcy case.
7. For Chapter 13 Cases, Review Your Repayment Plan: Depending on the new asset’s value, it may affect your Chapter 13 repayment plan. Your attorney can help you understand how the new assets might affect your plan and whether any changes are necessary.

Additionally, it is essential to note that bankruptcy laws vary by state, and some states have exemptions that may allow you to keep a part of your inheritance. It’s also worth mentioning that these rules apply to any inheritance, whether it’s cash, real estate, or other types of property.

Remember, this is a general overview of circumstances and local laws. If you’re a current client and have questions, try looking through these answers first; they’re made to answer frequent questions, but your specific situation may vary. If you still need help, call the office at the top of this page nearest you or email your paralegal directly. Our team is ready to help you; if needed, we can set up a meeting with your attorney. Always consult with your bankruptcy attorney for personalized advice.

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What do I do if my vehicle is involved in an accident and is declared a total loss while I am in a Chapter 13 case?

If your vehicle is involved in an accident and is declared a total loss while you are in a Chapter 13 bankruptcy case, it is essential to know the steps to take. Here’s a simplified guide:

1. Report the Accident: The first step is to report the accident to your insurance company. They will assess the damage and decide if your vehicle is a total loss.
2. Inform Your Bankruptcy Attorney: You should inform your bankruptcy attorney about the accident. They will need to know about any changes to your financial situation, including losing your vehicle. Here are the items that you will likely need to provide to your attorney:

• Name of Insurance Company
• Telephone Number
• Claim Number
• Amount of Insurance Proceeds
• Payoff Amount to Lienholder
• Are any Insurance funds remaining after the payoff of the debtor? If so, how much?
• If money remains, what do Debtor(s) plan to do with it?
• Any Documentation Regarding: Insurance Claim

3. Work with Your Insurance Company: Your insurance company will typically offer a settlement based on the value of your vehicle before the accident. Working with your attorney during this process is essential to ensure the settlement is fair and follows your bankruptcy plan’s terms.
4. Inform the Bankruptcy Trustee: The bankruptcy trustee needs to be informed about the insurance settlement. Sometimes, the trustee may need to approve the settlement before you can accept it. Your attorney will do this for you.
5. Replacement Vehicle: If you need to replace your vehicle, you will need approval from the bankruptcy court. This is because taking on new debt, such as a car loan, can affect your bankruptcy plan. Below are links that discuss what you may need to do if you need a replacement vehicle: INCLUDE INTERNAL LINKS to:

• • Can I buy a car for cash while in Chapter 13 without permission from the Court?
  • Can I finance a car purchase while in Chapter 13? If so, what’s required?

6. Adjust Your Bankruptcy Plan: Depending on the insurance settlement and replacement vehicle cost, you may need to adjust your bankruptcy plan. Your attorney can guide you through this process.

Remember, this is a general overview of circumstances and local laws. If you’re a current client and have questions, try looking through these answers first; they’re made to answer frequent questions, but your specific situation may vary. If you still need help, call the office at the top of this page nearest you or email your paralegal directly. Our team is ready to help you; if needed, we can set up a meeting with your attorney. Always consult with your bankruptcy attorney for personalized advice.

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What do I do if I want to sell my home or other property while I am in Bankruptcy?

Suppose you’re in a bankruptcy case and considering selling your home or other property. In that case, it’s essential to understand that this process involves several key steps and considerations.

First, your property, including your home, is part of your bankruptcy estate. This means it’s under the control of the bankruptcy court and the trustee assigned to your case. Therefore, you can’t sell your property without the Court’s permission.

To get this permission, you’ll need to file a motion with the Court, explaining why you want to sell the property and providing details about the proposed sale, including the sale price and how the proceeds will be used. This motion must be sent to all your creditors and the trustee, who will have the opportunity to object if they believe the sale is not in the best interest of your bankruptcy estate.

If the Court approves your motion, you can continue with the sale. However, the proceeds from the sale may be used to pay your creditors as part of your bankruptcy plan. This means you may be unable to keep all the Money from the sale.

In some cases, you may be able to exempt some or all the sale proceeds, meaning you can keep this Money. The rules for exemptions vary by state, so you’ll need to check the laws in your area or consult a bankruptcy attorney to understand how this works.

Remember, this is a general overview of circumstances and local laws. If you’re a current client and have questions, try looking through these answers first; they’re made to answer frequent questions, but your specific situation may vary. If you still need help, call the office at the top of this page nearest you or email your paralegal directly. Our team is ready to help you; if needed, we can set up a meeting with your attorney. Always consult with your bankruptcy attorney for personalized advice.

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Can I change my mind about keeping and surrendering a vehicle after filing my case?

In a Chapter 7 bankruptcy case, you can reaffirm your vehicle loan. This means you agree to continue paying the loan as if you had not filed for Bankruptcy. The reaffirmation agreement is a new contract between you and the lender, and it reinstates your obligation to pay the debt.

However, what if you change your mind after reaffirming the vehicle loan? Can you still surrender the vehicle? The answer to this question can be complex and depends on several factors.

Generally, once a reaffirmation agreement is signed and approved by the Court, it is binding. This means you are legally obligated to continue making payments on the vehicle loan. Suppose you decide to surrender the vehicle after reaffirming the loan. In that case, you may still end up with any deficiency in balance, which is the difference between what you owe on the loan and what the lender can sell the vehicle for.

However, there may be some exceptions. For instance, if the Court still needs to approve the reaffirmation agreement, you may be able to rescind or cancel the agreement. The Bankruptcy Code allows a debtor to rescind a reaffirmation agreement at any time before the Court issues a discharge order or within 60 days after the agreement is filed with the Court, whichever comes later.

Moreover, you can prove that you signed the reaffirmation agreement under duress without fully understanding the implications. In that case, the Court may allow you to rescind the agreement even after it has been approved.

It’s important to note that the laws surrounding reaffirmation agreements and surrendering a vehicle after reaffirmation can vary by state and by individual circumstances. Therefore, it’s crucial to consult with a bankruptcy attorney to understand your options and the potential consequences of your decisions.

In Chapter 13, Bankruptcy, the process is a bit more complex. If you initially decided to keep your vehicle but later chose to surrender it, you must change your Chapter 13 repayment plan. This is because your plan would have included payments towards your vehicle loan. You would need to file a motion to change your plan with the bankruptcy court, and the Court would need to approve the modification. Once the vehicle is surrendered, your repayment plan will treat the remaining debt as unsecured. In most cases, unsecured debts are paid a fraction of what is owed, and any remaining balance is discharged at the end of your Chapter 13 plan.

Remember, this is a general overview of circumstances and local laws. If you’re a current client and have questions, try looking through these answers first; they’re made to answer frequent questions, but your specific situation may vary. If you still need help, call the office at the top of this page nearest you or email your paralegal directly. Our team is ready to help you; if needed, we can set up a meeting with your attorney. Always consult with your bankruptcy attorney for personalized advice.

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What happens, and what do I need to do if a motion to dismiss is filed in my Chapter 13 case?

In a Chapter 13 bankruptcy case, a motion to dismiss can be filed for several reasons, including but not limited to failure to make plan payments, supply tax returns, or supply tax refunds. Let’s discuss each of these scenarios.

1. Failure to Pay: If you do not make your scheduled Chapter 13 plan payments, the trustee or a creditor may file a motion to dismiss your case. If this happens, you should at once contact your bankruptcy attorney. They can help you understand your options, including changing your payment plan, converting your case to a Chapter 7 bankruptcy, or opposing the motion to dismiss.
2. Failure to Provide Tax Returns: As part of your Chapter 13 bankruptcy, you must supply copies of your tax returns to the bankruptcy trustee. If you do not do this, a motion to dismiss your case may be filed. If you find yourself in this situation, you should supply the required tax returns as soon as possible and consult your bankruptcy attorney about how to respond to the motion.
3. Failure to Provide Tax Refunds: In some Chapter 13 cases, you may have to turn over your tax refunds to the bankruptcy trustee. If you do not do this, a motion to dismiss your case may be filed. If this happens, you should immediately turn over the required tax refunds and consult with your bankruptcy attorney about how to respond to the motion.

Remember, this is a general overview of circumstances and local laws. If you’re a current client and have questions, try looking through these answers first; they’re made to answer frequent questions, but your specific situation may vary. If you still need help, call the office at the top of this page nearest you or email your paralegal directly. Our team is ready to help you; if needed, we can set up a meeting with your attorney. Always consult with your bankruptcy attorney for personalized advice.

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Can I reinstate my case or re-file another case if it is dismissed?

If your bankruptcy case gets dismissed, you might wonder whether you can reinstate it or re-file another case. The answer to this question can depend on several factors, including the reason for the dismissal and the type of bankruptcy case you had initially filed.

In some situations, it may be possible to reinstate a dismissed bankruptcy case. This typically involves filing a motion with the bankruptcy court and explaining why the case was dismissed and how you plan to correct the issue. For example, if your case was dismissed because you did not make your Chapter 13 plan payments, you could reinstate it by catching up on these payments and proving to the Court that you can continue making them.

On the other hand, if reinstatement is not an option, you can re-file another bankruptcy case. However, there are certain restrictions and time limits that apply to re-filing. For instance, if you previously filed a Chapter 7 bankruptcy case and received a discharge, you must wait eight years from the first filing date before filing another Chapter 7 case. If you filed a Chapter 13 case and received a discharge, the waiting period is typically two years.

It’s also important to note that if your case was dismissed for specific reasons, such as fraud or failure to follow court orders, you may face additional restrictions or penalties when trying to re-file. The Court may even prohibit you from re-filing for a certain period.

Remember, this is a general overview, and the specifics can vary based on your Remember, this is a general overview of circumstances and local laws. If you’re a current client and have questions, try looking through these answers first; they’re made to answer frequent questions, but your specific situation may vary. If you still need help, call the office at the top of this page nearest you or email your paralegal directly. Our team is ready to help you; if needed, we can set up a meeting with your attorney. Always consult with your bankruptcy attorney for personalized advice.

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What happens, and what do I need to do if a motion to lift the automatic stay is filed in my case?

In a Chapter 13 bankruptcy case, the automatic stay is a powerful tool that protects you from creditors’ collection efforts. However, a creditor may file a motion to lift the automatic stay, seeking the Court’s permission to resume collection actions. This typically happens when the creditor believes they are not adequately protected, such as when you’re behind on your car or mortgage payments or your required insurance coverage lapses.

When a creditor files a motion to lift the automatic stay, you will be notified and given a chance to respond. If you wish to keep the property the creditor is trying to repossess or foreclose on, you may need to change your Chapter 13 plan or provide the creditor with adequate protection, like proof of insurance. This modification would involve adjusting your plan payments to ensure that the creditor is paid in total over the life of the plan. This could mean increasing your monthly plan payment or extending the length of your plan.

However, it’s important to note that modifying your plan is only sometimes a guaranteed solution. The Court will consider the creditor’s motion and your response, then decide whether to lift the automatic stay. If the Court favors the creditor, the creditor can go ahead with foreclosure, repossession, or other collection actions.

Remember, this is a general overview; the specifics can vary based on your circumstances and local laws. If you’re a current client and have questions, try looking through these answers first; they’re made to answer frequent questions, but your specific situation may vary. If you still need help, call the office at the top of this page nearest you or email your paralegal directly. Our team is ready to help you; if needed, we can set up a meeting with your attorney. Always consult with your bankruptcy attorney for personalized advice.

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Can I convert my Chapter 13 case to a Chapter 7 case?

Converting a Chapter 13 bankruptcy case to a Chapter 7 case is possible for debtors who can no longer afford their Chapter 13 plan payments. However, this process involves several considerations and steps.

Chapter 13 and Chapter 7 are different types of bankruptcy. Chapter 13 is a reorganization bankruptcy designed for debtors with regular income who can pay back at least a part of their debts through a repayment plan. On the other hand, Chapter 7 is a liquidation bankruptcy where the debtor’s non-exempt assets are sold to pay back the creditors.

To convert a Chapter 13 case to Chapter 7, you must qualify for Chapter 7. This may involve passing the means test, which compares your income to the median income in your state. If your income is too high, you may not be eligible for Chapter 7. Furthermore, you may not be eligible if you have prior bankruptcy cases.

The conversion process involves filing a Notice of Conversion with the bankruptcy court and paying a conversion fee. Once the conversion is approved, a new trustee will be assigned to your case, and you will need to attend a new meeting of creditors.

Most debtors convert their Chapter 13 bankruptcy to Chapter 7 because they can no longer afford to make Chapter 13 plan payments due to a change in their financial circumstances, or they wish to surrender a property (such as a house or car) that Chapter 13 was designed to save.

However, it’s important to note that converting to Chapter 7 might affect your property and ability to discharge some debts. While Chapter 13 allows you to keep all your property, Chapter 7 may result in some of your property being sold to pay back your creditors. Additionally, while Chapter 13 allows for a broader range of debts to be discharged, Chapter 7 has more restrictions. Therefore, some debts that could be discharged under Chapter 13 might not be discharged under Chapter 7.

In some circumstances, the court can force you to convert your Chapter 13 bankruptcy to Chapter 7 so that your non-exempt assets can be sold to pay your creditors. The most common reasons a court may force you to convert include lying in your bankruptcy documents, hiding assets, filing for bankruptcy primarily to hinder or delay creditors, or abusing the bankruptcy system.

In conclusion, converting a Chapter 13 case to a Chapter 7 case is a significant decision that should be made carefully and preferably with the advice of a knowledgeable bankruptcy attorney.

Remember, this is a general overview; the specifics can vary based on your circumstances and local laws. If you’re a current client and have questions, try looking through these answers first; they’re made to answer frequent questions, but your specific situation may vary. If you still need help, call the office at the top of this page nearest you or email your paralegal directly. Our team is ready to help you; if needed, we can set up a meeting with your attorney. Always consult with your bankruptcy attorney for personalized advice.

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Can I dismiss my Chapter 13 case?

Yes, you can dismiss your Chapter 13 bankruptcy case, but it’s crucial to understand the implications. When you dismiss your case, the bankruptcy proceedings stop, and you’re no longer under the automatic stay protection of the bankruptcy court. This allows creditors to resume their collection efforts, including lawsuits, wage garnishments, and foreclosure proceedings.

Generally, the right to dismiss a Chapter 13 case is absolute for those who voluntarily file. However, in rare cases, the court may deny your request to dismiss if it finds that dismissal would be prejudicial to your creditors. The court might deny a dismissal request in extreme cases, such as if there’s evidence of bankruptcy fraud or abuse of the bankruptcy system.

It’s also important to note that dismissing your case will not erase the bankruptcy filing from your credit report. The bankruptcy filing will remain on your credit report for up to seven years, even if the case is dismissed and no debts are discharged. This could affect your ability to obtain credit during that time.

If you’re considering dismissing your Chapter 13 case, it’s essential to consult with your bankruptcy attorney first. They can help you understand the potential consequences and explore other options that may be more beneficial to your financial situation.

Remember, this is a general overview; the specifics can vary based on your circumstances and local laws. If you’re a current client and have questions, try looking through these answers first; they’re made to answer frequent questions, but your specific situation may vary. If you still need help, call the office at the top of this page nearest you or email your paralegal directly. Our team is ready to help you; if needed, we can set up a meeting with your attorney. Always consult with your bankruptcy attorney for personalized advice.

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