In order to initiate a chapter 13 case, a debtor must file complete bankruptcy schedules including but not limited to the voluntary petition, creditor matrix, Statement of Social Security Number, and the Means Test, referred to as Form B22A, with the Bankruptcy Court. The debtor must also simultaneously file a valid certificate of credit counseling with the Court. A certificate of credit counseling is valid if the counseling course was completed by the debtor within 180 days of the bankruptcy filing and if the counseling course was administered through an agency approved by the Department of Justice (See Credit Counseling Agencies). The certificate of credit counseling is the debtor’s ticket into the bankruptcy.

The major procedural difference between a chapter 7 and chapter 13 case is that the chapter 13 debtor must propose a chapter 13 plan to repay his or her creditors. The chapter 13 debtor must file such chapter 13 plan with the court within fifteen (15) days of the original filing. The trustee will move to dismiss the case if the plan is not filed in a timely manner. Furthermore, the chapter 13 debtor must begin making plan payments to the chapter 13 trustee within thirty (30) days of the bankruptcy filing. The trustee typically will not conduct the debtor’s 341 meeting of creditors unless the first plan payment is received. Worse, though, failure to make the required plan payments could result in the dismissal of the case.

Failure to file all required documents may also result in the dismissal of the case. The court allows the filing of a skeleton petition (known as a "bare-bones" filing). However, the balance of the schedules are due within fifteen days of the initial filing. Rather than risk dismissal, it is highly recommended to file all bankruptcy schedules and the certificate of credit counseling at the initial filing.

The chapter 13 debtor must provide copies of various financial records to the assigned chapter 13 trustee at least fifteen (15) days prior to the scheduled Meeting of Creditors. The debtor’s production of documents is a serious matter. The chapter 13 trustee may refuse to conduct the scheduled Meeting of Creditors, continue the matter to another day, or seek dismissal of the case. Any documents that the debtor fails to provide will be demanded within a legal document entitled "Trustee’s Opposition to Confirmation and Request for Dismissal". The chapter 13 trustee uses the confirmation process as leverage to obtain missing document(s). In other words, the chapter 13 trustee will oppose confirmation of the debtor’s plan unless all documents are provided.

The financial documents that the chapter 13 trustee generally requires include but are not limited to:

*Credit counseling certificate

*Statement of Social Security number

*Bank statements for all financial accounts for six months prior to  filing;

*Four most recent years of federal income tax returns;   

*Paychecks covering the full six (6) months prior to filing;

*Divorce decrees and property settlement agreement if divorced within the prior three years;

*Profit and loss statements for any business owned or operated within six months prior to filing; and

*Affidavit of child support if child support is owed.

Chapter 13 Trustees in the Las Vegas area also require the completion of a Trustee’s Questionnaire prior to the scheduled Meeting of Creditors. Sending all required documentation well in advance of the scheduled Meeting of Creditors is strongly recommended. Doing so should expedite and simplify the debtor’s Meeting of Creditors because the Trustee will have had sufficient time to review the debtor’s financial information and to prepare relevant questions.

As soon as the case is filed, the Bankruptcy Court issues a case number. The first part of the case number represents the year of the filing. The second part of the case number generally is assigned sequentially based on the number of cases filed for that year. The final portion of the case number refers to the judge assigned to the case.

The court also assigns a Chapter 13 trustee to review your financial affairs and assess the value of your property. Please click link for a listings for the Chapter 13 trustees in the Reno and Las Vegas areas. The Chapter 13 trustee does not work for you and is in an adversarial position with you. The Chapter 13 trustee is a federal employee who must operate within the constraints of federal law. The Chapter 13 trustee is paid a salary by the federal government and earns a statutory commission of up to ten percent (10%) on every Chapter 13 case filed.

The Bankruptcy Court shortly after filing issues a notice entitled, "Notice of Commencement of Chapter 13 Bankruptcy Case and Meeting of Creditors", which contains a wealth of information. The Notice lists the trustee assigned to the case; the date and time of the Meeting of Creditors; the date and time of the confirmation hearing; the deadline for creditors to file a complaint objecting to the debtor’s discharge, also known as the nondischargeability deadline; and the deadline for creditors to file claims, also known as the claims bar date.

The non-dischargeability deadline is a crucial date because creditors must object to the discharge of debts within a specific period of time. If the creditors fail to do so within the allotted time, they lose the right to complain about the discharge of those debts. A similarly important date is the claim bar date. Creditors must file claims in order to be included in the chapter 13 trustee’s distribution to creditors. Creditors who fail to file claims or tardily file claims are excluded from the process. In limited circumstances, the exclusion of a creditor’s claim may result in lower plan payments or a shorter plan because the debtor ultimately has less debt to repay.

The Court will automatically issue a general discharge order at the completion of the chapter 13 plan (after all plan payments are completed) and after an affidavit of child support is filed with the court, if necessary.

After the bankruptcy filing but before the discharge, every debtor must complete a financial management course, also known as the Debtors Education (DE) course, from an agency approved by the Department of Justice (See Debtor Education Agencies). It is imperative that the certificate of completion of the DE course is filed with the Bankruptcy Court prior to the discharge date. The certificate of Debtor Education is the debtor’s ticket out of the bankruptcy. Failure to file the certificate in a timely manner will result in the closing of the debtor’s case without the issuance of a discharge order. The debtor must then file an appropriate request with the bankruptcy court to reopen the case and pay the court’s reopening fee which is currently $260.00.

The chapter 13 debtor must attend a court hearing known as the Meeting of Creditors or Section 341(a) hearing. This hearing is scheduled about thirty (30) to forty (40) days after the case is filed. This hearing is conducted by the assigned trustee who examines the debtor under penalty of perjury. The trustee reviews each case to verify the representations made by each debtor in his or her bankruptcy schedules, the debtor’s compliance with all filing requirements, and the debtor’s entitlement to chapter 13 relief. The trustee’s examination will specifically address the debtor’s past and future income. The trustee will also review the chapter 13 plan to ensure all disposable income is committed, the plan is feasible, and the proposed treatment of creditors is proper. The other purpose of the hearing is to allow the debtor’s creditors the opportunity to question the debtor regarding his or her financial affairs.

The Meeting of Creditors in a chapter 13 case is conducted differently than in a chapter 7 case. A staff member of the chapter 13 trustee will conduct a preliminary meeting with each debtor to verify the debtor’s identity. Each debtor must present his or her social security card and a valid driver’s license, passport, or state identification. A military id, medicare card, or letter prepared by a government agency is generally accepted in lieu of an actual social security card. The debtor’s tax return or W-2 will not suffice. Within this preliminary meeting, the staff member will provide a informational booklet to each debtor which answers the most frequently asked questions regarding chapter 13 bankruptcies. The staff member will also provide payment instructions for the chapter 13 plan payments including method of payment and address of the trustee’s lockbox.

The Meeting of Creditors is an informal hearing. Debtors will not appear before a judge. However, common rules of decency apply including the prohibition of cell phones, food, and drinks. The hearing is essentially a "cattle call" since many cases are scheduled for hearing each hour. The assigned trustee calls the cases in the order he or she chooses. The trustee rarely deviates from his or her calendar, and it can be unwise to ask for special accommodations unless the debtor is handicapped or there is an emergency. Once the trustee calls a case, the hearing on that matter should take approximately twenty (20) to thirty (30) minutes. Please be aware that if a debtor is represented by an attorney, the trustee cannot call the case unless the attorney is present.

After the conclusion of the Meeting of Creditors and on the designated date, the case proceeds to confirmation. Confirmation is the court’s approval of the debtor’s proposed chapter 13 plan. The goal of every chapter 13 debtor is to obtain confirmation of his or her proposed chapter 13 plan. Confirmation is binding on all the debtor’s creditors. If a creditor fails to file an appropriate objection to the confirmation, the plan should be confirmed. Amended plans are routinely filed with the court prior to confirmation to resolve any glaring deficiencies.

Unrepresented debtors or the attorney for the debtor must attend a pre-confirmation hearing with the chapter 13 trustee. Pre-confirmation hearings are heard at 8:30 a.m. on the date of the confirmation hearing. The hearings are typically held in the same location as the Meeting of Creditors. If all issues have been resolved, the chapter 13 trustee will request the debtor’s or attorney’s signature on the proposed plan at that time. Last minute changes or write-ins routinely occur at this pre-confirmation hearing and must be initialed by the debtor or attorney.

If all issues are resolved at the pre-confirmation hearing, then the debtor’s or attorney’s appearance is unnecessary at the afternoon confirmation hearing before the judge. The trustee merely goes on record requesting the confirmation of the proposed plan. If, however, changes are required or issues remain after the pre-confirmation, the trustee may permit the continuance of the confirmation hearing into the near future. If the debtor or attorney have reason(s) to disagreed with the trustee, then an appearance at the afternoon confirmation hearing will be required. The interested party(ies) should be prepared to argue the matter before the judge. The filing of an appropriate pleading may also be required to formally inform the court and all interested parties of the nature of the dispute.

After the chapter 13 plan is confirmed, the debtor must continue to make the required chapter 13 plan payments in addition to all regular monthly payments for homes, vehicles, and other secured assets that the debtor intends to keep. The chapter 13 debtor is also required to file all federal and state tax returns as they become due during the pendency of the case. The debtor must forward a copy of each return and the tax refund, if any, to the chapter 13 trustee for the duration of the chapter 13 case. Furthermore, the debtor must file an annual statement of income and expenditures if requested by any party in interest and copies of the debtor’s tax returns if requested by any interested party.

In summary, Chapter 13 cases are extremely complicated proceedings. There are many pitfalls in the Bankruptcy Code which will evade the unrepresented debtor. Legal representation is essential to protect every debtor’s rights. An attorney should be retained to navigate the debtor through the treacherous world of bankruptcy law. The information is intended to merely familiarize the debtor with the process. It has been provided in simplest terms possible but is not all inclusive.

                 ***All Users of this Website Are Subject to the Terms of Use Policy .***