August 23rd, 2010
Any individual, even if self-employed or operating an unincorporated business, is eligible for chapter 13 bankruptcy relief as long as the individuals unsecured debts are less than $336,900 and secured debts are less than $1,010,650. 11 U.S.C. § 109(e).
These amounts are adjusted periodically to reflect changes in the consumer price index. A corporation or partnership may not be a chapter 13 bankrutpcy debtor. Id.
An individual cannot file under chapter 13 bankruptcy or any other chapter if, during the preceding 180 days, a prior bankruptcy petition was dismissed due to the debtor’s willful failure to appear before the court or comply with orders of the court or was voluntarily dismissed after creditors sought relief from the bankruptcy court to recover property upon which they hold liens. 11 U.S.C. §§ 109(g), 362(d) and (e).
In addition, no individual may be a debtor under chapter 13 or any chapter of the Bankruptcy Code unless he or she has, within 180 days before filing, received credit counseling from an approved credit counseling agency either in an individual or group briefing. 11 U.S.C. §§ 109, 111.
There are exceptions in emergency situations or where the U.S. trustee (or bankruptcy administrator) has determined that there are insufficient approved agencies to provide the required counseling. Also, if a debt management plan is developed during required credit counseling, it must be filed with the court.
For answers to your questions on Chapter 13 bankruptcy requirements and eligibility, call the law office of Dallas area attorney Patrick D. West
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August 23rd, 2010
A chapter 13 bankruptcy case begins by filing a petition with the bankruptcy court serving the area where the debtor has a domicile or residence.
Unless the bankruptcy 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 debtor must also:
a) file a certificate of credit counseling and a copy of any debt repayment plan developed through credit counseling
b) provide evidence of payment from employers, if any, received 60 days before filing
c) furnish the bankruptcy court a statement of monthly net income and any anticipated increase in income or expenses after filing and
d) provide records of any interest the debtor has in federal or state qualified education or tuition accounts.
The debtor must provide the chapter 13 bankruptcy 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 a chapter 13 bankruptcy , a husband and wife may file a joint petition or individual petitions.
Fort Worth bankruptcy attorney Patrick D. West will give you straight answers for your questions on chapter 13 bankruptcy. Mr. West has law offices in both Fort Worth and Irving for your convenience. For any questions on the bankruptcy filing process, call the Patrick D. West Law Firm.
Tags: bankruptcy, bankruptcy case, bankruptcy case trustee, bankruptcy court orders, bankruptcy process, certificate of credit counseling, chapter 13, Chapter 13 Bankruptcy, Chapter 13 Bankruptcy Process, credit counseling, debtor, schedule of current income, schedules of assets and liabilities, statement of financial affairs
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August 16th, 2010
A chapter 13 debtor is entitled to a discharge upon completion of all payments under the chapter 13 plan so long as the debtor: (1) certifies (if applicable) that all domestic support obligations that came due prior to making such certification have been paid; (2) has not received a discharge in a prior case filed within a certain time frame (two years for prior chapter 13 cases and four years for prior chapter 7, 11 and 12 cases); and (3) has completed an approved course in financial management (if the U.S. trustee or bankruptcy administrator for the debtor’s district has determined that such courses are available to the debtor). 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.
The discharge releases the debtor from all debts provided for by the plan or disallowed (under section 502), with limited exceptions. Creditors provided for in full or in part under the chapter 13 plan may no longer initiate or continue any legal or other action against the debtor to collect the discharged obligations.
As a general rule, the discharge releases the debtor from all debts provided for by the plan or disallowed, with the exception of certain debts referenced in 11 U.S.C. § 1328. Debts not discharged in chapter 13 include certain long term obligations (such as a home mortgage), debts for alimony or child support, certain taxes, debts for most government funded or guaranteed educational loans or benefit overpayments, debts arising from death or personal injury caused by driving while intoxicated or under the influence of drugs, and debts for restitution or a criminal fine included in a sentence on the debtor’s conviction of a crime. To the extent that they are not fully paid under the chapter 13 plan, the debtor will still be responsible for these debts after the bankruptcy case has concluded. Debts for money or property obtained by false pretenses, debts for fraud or defalcation while acting in a fiduciary capacity, and debts for restitution or damages awarded in a civil case for willful or malicious actions by the debtor that cause personal injury or death to a person will be discharged unless a creditor timely files and prevails in an action to have such debts declared nondischargeable.
The discharge in a chapter 13 case is somewhat broader than in a chapter 7 case. Debts dischargeable in a chapter 13, but not in chapter 7, include debts for willful and malicious injury to property (as opposed to a person), debts incurred to pay nondischargeable tax obligations, and debts arising from property settlements in divorce or separation proceedings.
The bankruptcy law regarding the scope of the chapter 13 discharge is complex. If you live in the DFW area, and are considering filing Chapter 13 , contact Fort Worth Bankruptcy attorney Patrick D. West Law for a free consultation
Tags: bankruptcy administrator, bankruptcy attorney, bankruptcy law, chapter 13, chapter 13 cases, chapter 13 debtor, Chapter 13 Discharge, chapter 13 plan, chapter 7, debtor’s homestead, filing Chapter 13, fort worth bankruptcy, fort worth bankruptcy attorney, nondischargeable
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