Priority claims are those granted special status by the bankruptcy law, such as most taxes and the costs of bankruptcy proceeding. R. Bankr. Unless the court orders otherwise, the debtor must also file with the court: (1) schedules of assets and liabilities; (2) a schedule of current income and expenditures; (3) a schedule of executory contracts and unexpired leases; and (4) a statement of financial affairs. The court will not enter the discharge, however, until it determines, after notice and a hearing, that there is no reason to believe there is any pending proceeding that might give rise to a limitation on the debtor's homestead exemption. §§ 1305(c), 1322(a)(1), 1327. A Chapter 13 plan is a document filed with or shortly after a debtor's Chapter 13 bankruptcy petition. 11 U.S.C. Search, Statement of Current Monthly Income and Disposable Income Calculation for Use in Chapter 13, Chapter 13: Repayment Plan and Confirmation Hearing. For example, a creditor may object or threaten to object to a plan, or the debtor may inadvertently have failed to list all creditors. § 341(c). A chapter 13 case begins by filing a petition with the bankruptcy court serving the area where the debtor has a domicile or residence. In such situations, the debtor may ask the court to grant a "hardship discharge." Payments to certain secured creditors (i.e., the home mortgage lender), may be made over the original loan repayment schedule (which may be longer than the plan) so long as any arrearage is made up during the plan. These amounts are adjusted periodically to reflect changes in the consumer price index. 11 U.S.C. After confirmation of a plan, circumstances may arise that prevent the debtor from completing the plan. Individuals will have no direct contact with creditors while under chapter 13 protection. §§ 109(g), 362(d) and (e). 11 U.S.C. A list of all creditors and the amounts and nature of their claims; The source, amount, and frequency of the debtor's income; A list of all of the debtor's property; and. § 1302(b). The number of installments is limited to four, and the debtor must make the final installment no later than 120 days after filing the petition. In order to preserve their independent judgment, bankruptcy judges are prohibited from attending the creditors' meeting. Priority claims are those granted special status by the bankruptcy law,... "Secured" Claims Under the Repayment Plan. 28 U.S.C. Secured claims are those for which the creditor has the right take back certain property (i.e., the collateral) if the debtor does not pay the underlying debt. § 1325(b)(2)(A) and (B). The email address cannot be subscribed. 11 U.S.C. If a husband and wife file a joint petition, they both must attend the creditors' meeting and answer questions. Modification of plan before confirmation § 1324. The bankruptcy clerk gives notice of the bankruptcy case to all creditors whose names and addresses are provided by the debtor. Administrative Oversight and Accountability, Chronological History of Authorized Judgeships - Courts of Appeals, Chronological History of Authorized Judgeships - District Courts. If the court declines to confirm the plan, the debtor may file a modified plan. Modification after confirmation is not limited to an initiative by the debtor, but may be at the request of the trustee or an unsecured creditor. Section 507 sets forth 10 categories of unsecured claims which Congress has, for public policy reasons, given priority of distribution over other unsecured claims. R. Bankr. This is one reason why many Chapter 13 filers hire an attorney. U.S. Code. The provisions of a confirmed plan bind the debtor and each creditor. The stay arises by operation of law and requires no judicial action. The debtor must provide the chapter 13 case trustee with a copy of the tax return or transcripts for the most recent tax year as well as tax returns filed during the case (including tax returns for prior years that had not been filed when the case began). In North Carolina and Alabama, bankruptcy administrators perform similar functions that U.S. trustees perform in the remaining forty-eight states. In contrast to secured claims, unsecured claims are generally those for which the creditor has no special rights to collect against particular property owned by the debtor. The debtor must attend the meeting and answer questions regarding his or her financial affairs and the proposed terms of the plan.11 U.S.C. A detailed list of the debtor's monthly living expenses, i.e., food, clothing, shelter, utilities, taxes, transportation, medicine, etc. § 1328. P. 1006(b). Id. A fee of $25 is charged for converting a case under chapter 13 to a case under chapter 7. Generally, such a discharge is available only if: (1) the debtor's failure to complete plan payments is due to circumstances beyond the debtor's control and through no fault of the debtor; (2) creditors have received at least as much as they would have received in a chapter 7 liquidation case; and (3) modification of the plan is not possible. Any individual, even if self-employed or operating an unincorporated business, is eligible for chapter 13 relief as long as the individual's unsecured debts are less than $394,725 and secured debts are less than $1,184,200. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply. (3) Secured claims are those for which the creditor has the right take back certain property (i.e., the collateral) if the debtor does not pay the underlying debt.