Bankruptcy FAQs – Majors Law Group

Answer: Chapter 13 bankruptcy, also known as a “wage earner’s plan,” allows individuals with regular income to create a repayment plan to pay back all or part of their debts over three to five years. Unlike Chapter 7, debtors can keep their property (such as a home or car) while making payments through a trustee to creditors. It’s ideal for those who want to avoid liquidation and catch up on secured debts like mortgages.

Answer:

These differences help determine which chapter fits your situation.

Answer: For Chapter 7, you must pass the means test, which compares your income to the state median—if above, your disposable income must be low enough to not fund a repayment plan. You also need credit counseling within 180 days before filing. For Chapter 13, you need regular income, and your secured debts can’t exceed $1,395,875 and unsecured debts $465,275 (as of 2024 adjustments). You can’t have filed a Chapter 7 in the last 8 years or Chapter 13 in the last 6 years for a discharge.

Answer: Both start with credit counseling, filing a petition, schedules of assets/debts, and paying fees. In Chapter 7, a trustee reviews assets for liquidation; in Chapter 13, you propose a repayment plan for court confirmation. Both involve a 341 meeting of creditors, and end with a discharge if successful.

Steps Overview:

1. Complete credit counseling.
2. File petition and documents with the bankruptcy court.
3. Attend 341 meeting (4-6 weeks after filing).
4. For Chapter 7: Trustee handles asset sales; discharge in 60-90 days post-meeting.
5. For Chapter 13: Court confirms plan; make payments; discharge after plan completion.

Answer: Yes, you can file pro se (on your own), but it’s complex and risky due to legal nuances. Resources are available on uscourts.gov for self-filers. Non-attorney petition preparers can only type forms, not give legal advice.

Answer: If you are served with a lawsuit, you generally have 20 days to respond, depending on your jurisdiction’s rules. If you are pursuing Chapter 7 or Chapter 13 bankruptcy, you can include the creditor or law firm from the lawsuit in your bankruptcy petition once you retain our office, pay the attorney fees and filing fees in full, and we begin preparing your filing. Our firm will request information about any lawsuits at that time to ensure all relevant creditors are included. Once the bankruptcy is filed, an automatic stay goes into effect, halting most lawsuits and collection actions, including those from creditors listed in the filing. This stay prevents creditors from pursuing legal action while your bankruptcy case is active. Majors Law Group is not retained to defend civil actions brought by creditors, nor will we take any formal action on your behalf in such matters. If you wish to defend the lawsuit outside of bankruptcy, you must seek separate legal representation from another firm. For specific questions about your lawsuit or bankruptcy case, our attorneys will provide detailed guidance once we reach the filing stage after attorney fees and filing fees are paid. This information is for informational purposes only and not legal advice—consult an attorney to understand your options.

Answer: Yes, if you are married and live in a community property state like Arizona or Washington, you must include information about your non-filing spouse in your bankruptcy petition, even though they are not filing for bankruptcy. In community property states, all community property assets and debts—those acquired during the marriage—are considered part of the bankruptcy estate, regardless of which spouse files. This includes assets like real estate, bank accounts, vehicles, and personal property, as well as debts like mortgages, credit cards, or loans incurred during the marriage. You must disclose your non-filing spouse’s income, assets, and debts to provide a complete financial picture for the bankruptcy trustee to evaluate. Failure to include this information could lead to case dismissal or other penalties. For specific questions about your spouse’s information or its impact on your case, our attorneys will provide detailed guidance once we reach the filing stage after attorney fees and filing fees are paid.

Breakdown and Explanation:

• Community Property States: States like Arizona, Washington, California, and others consider most assets and debts acquired during marriage as community property, owned equally by both spouses. In bankruptcy, the filing spouse’s share of community property is included in the bankruptcy estate, even if the other spouse does not file.
• Impact on Chapter 7: The trustee may liquidate non-exempt community property to pay creditors, affecting both spouses’ assets. The non-filing spouse’s income is also considered in the means test.
• Impact on Chapter 13: Community property debts must be included in the repayment plan, and the non-filing spouse’s income is used to calculate disposable income for plan payments.
• Why It’s Required: The bankruptcy court needs a complete financial picture to ensure fair treatment of creditors and compliance with the law. Omitting this information risks dismissal or fraud allegations.

Answer: No, you cannot choose to exclude any creditors from your bankruptcy filing. Bankruptcy law requires that you list all creditors in your petition, regardless of whether you want to continue paying them or not. This includes creditors owed any amount, even those you intend to pay outside of bankruptcy. Full disclosure is mandatory to ensure transparency and compliance with bankruptcy rules. Omitting a creditor can lead to serious consequences, such as case dismissal or denial of discharge. However, it’s important to note that if a creditor’s account has a $0 balance at the time of filing, the account will likely be closed as part of the bankruptcy process, as there is no debt to discharge. For specific questions about including creditors in your case, our attorneys will provide detailed guidance once we reach the filing stage after attorney fees and filing fees are paid.

Breakdown and Explanation:

• Legal Requirement: The Bankruptcy Code mandates listing all debts to ensure creditors receive notice and can participate in the process. This protects the debtor’s right to a discharge and ensures fairness.
• Impact of Omission: If a creditor is not listed, their debt may not be discharged, and they could continue collection efforts post-bankruptcy. Intentional omission could be considered fraud.
• Zero-Balance Accounts: Accounts with no balance are typically closed by creditors upon notification of the bankruptcy, as there’s no debt to pursue. These must still be listed for transparency.
• Post-Filing Payments: You can voluntarily repay a discharged debt (e.g., to maintain a relationship with a creditor), but this must be arranged post-discharge, not by excluding them.

Answer: As of 2025, the court filing fee for Chapter 7 is $338, and for Chapter 13, it is $313. These fees must be paid to the bankruptcy court when filing the petition. In Chapter 7, low-income filers may qualify for a fee waiver or installment payments if their income is below 150% of the federal poverty guidelines. In Chapter 13, the fee is typically paid through the repayment plan. Additional fees may apply for amendments ($34) or case conversions (e.g., $25-$932 depending on the conversion type). For specific questions about filing fees in your case, our attorneys will provide detailed guidance once we reach the filing stage after attorney fees and filing fees are paid.

Breakdown and Explanation:

• Chapter 7 Fees: The $338 fee covers court processing and must be paid upfront unless a waiver or installment plan is approved. Waivers require proof of low income and inability to pay.
• Chapter 13 Fees: The $313 fee is often included in the repayment plan, reducing upfront costs. Installments may be allowed in rare cases.
• Additional Costs: Amending schedules (e.g., to add a creditor) incurs a $34 fee. Converting a case (e.g., Chapter 13 to Chapter 7) may involve additional fees, depending on the court.

Answer: If you are the legal owner of a vehicle primarily used by your child, and the associated debt (e.g., auto loan) is in your name, the vehicle and debt are considered part of your bankruptcy estate in both Chapter 7 and Chapter 13, regardless of who uses it. In Chapter 7, the trustee may liquidate the vehicle if it’s non-exempt, unless you claim an exemption (e.g., Arizona’s motor vehicle exemption up to $6,000 or Washington’s up to $3,250 as of 2025). If you wish to keep the vehicle, you must reaffirm the debt or redeem it by paying its current value. In Chapter 13, you can include the vehicle and debt in your repayment plan, allowing you to keep it by continuing payments, potentially restructuring the loan terms. You must disclose the vehicle and debt in your bankruptcy schedules, and the fact that your child uses it does not affect its inclusion in the estate. For specific questions about vehicles in your bankruptcy case, our attorneys will provide detailed guidance once we reach the filing stage after attorney fees and filing fees are paid.

Breakdown and Explanation:

• Legal Ownership: As the legal owner, the vehicle is part of your bankruptcy estate, regardless of your child’s use. The debt in your name must also be listed.
• Chapter 7: The trustee may sell non-exempt vehicles to pay creditors. Exemptions vary by state (e.g., Arizona: $6,000 per debtor; Washington: $3,250). Reaffirmation or redemption allows you to keep the vehicle but requires continued payments or a lump-sum payment.
• Chapter 13: The vehicle can be retained by including the debt in your repayment plan, often with modified terms (e.g., reduced interest rates via “cramdown” if the loan exceeds the vehicle’s value).
• Disclosure Requirement: You must list the vehicle and debt in your schedules, even if your child primarily uses it, to ensure compliance with bankruptcy rules.

Answer: Co-signers or co-borrowers on your debts are not included in your bankruptcy filing and do not receive bankruptcy protection unless they also file for bankruptcy. If you file for Chapter 7 or Chapter 13, creditors can pursue any co-signer or co-borrower for the full amount of the debt, even if your obligation is discharged or restructured. In Chapter 7, if you discharge a co-signed debt, the creditor can seek payment from the co-signer immediately. In Chapter 13, the automatic stay may temporarily protect co-signers on consumer debts (via the “co-debtor stay”), but this protection ends if the debt is not fully paid through the plan or the case is dismissed. You must list co-signed debts in your bankruptcy schedules, but the co-signer’s liability remains unaffected unless they file separately. For specific questions about co-signers in your bankruptcy case, our attorneys will provide detailed guidance once we reach the filing stage after attorney fees and filing fees are paid.

Breakdown and Explanation:

• No Protection for Co-Signers: Your bankruptcy only affects your liability for the debt. Co-signers remain fully liable unless they also file for bankruptcy.
• Chapter 7 Impact: If you discharge a co-signed debt, the creditor can immediately pursue the co-signer for the full amount, as they have no bankruptcy protection.
• Chapter 13 Co-Debtor Stay: In Chapter 13, a co-debtor stay may temporarily prevent creditors from pursuing co-signers on consumer debts (e.g., personal loans, credit cards), but this stay is lifted if the plan doesn’t fully pay the debt or the case is dismissed.
• Disclosure Requirement: You must list all co-signed debts in your bankruptcy schedules to ensure transparency and compliance with bankruptcy rules.

Answer: You must have filed all required tax returns for the relevant years before filing bankruptcy, and all tax debts must be listed in your petition. In some cases, income taxes can be dischargeable if they meet the “3-2-240 rule”: the tax return was due at least 3 years before filing, the return was filed at least 2 years before filing, the tax was assessed at least 240 days before filing, and there was no fraud, evasion, ongoing audit resulting in additional tax, or substitute return filed by the IRS. Priority taxes (e.g., recent taxes) are non-dischargeable and must be paid in full in Chapter 13, while non-priority taxes may be partially paid or discharged if qualifying. For specific questions about your tax debts, our attorneys will provide detailed guidance once we reach the filing stage after attorney fees and filing fees are paid.

Breakdown and Explanation:

• Filing Requirement: All tax returns must be filed; if not, the taxes are non-dischargeable. The IRS or state may file a substitute return, making the debt non-dischargeable.
• 3-Year Rule: The due date for the tax return (including extensions) must be at least 3 years before the bankruptcy filing date.
• 2-Year Rule: The tax return must have been filed at least 2 years before filing. Late-filed returns may not qualify unless filed voluntarily.
• 240-Day Rule: The tax must have been assessed (e.g., by IRS notice) at least 240 days before filing.
• Additional Conditions: No willful evasion or fraud; no substitute return filed by the IRS; no audit or tax court decision within certain time frames that results in additional tax liability.
• Chapter 7 vs. Chapter 13: In Chapter 7, qualifying taxes are discharged upon completion. In Chapter 13, non-qualifying (priority) taxes are paid in full through the plan, while qualifying taxes may be treated as general unsecured debts and partially discharged.

Answer: If you can’t find information about your debts, you can use our firm’s app to download your credit information, which will provide a comprehensive list of your creditors and debts reported to credit bureaus. This simplifies the process of identifying and listing all debts for your bankruptcy petition. If a debt is not reported on your credit report (e.g., medical bills, personal loans, or debts in collections not yet reported), you can manually enter the creditor’s details, such as their name, address, and amount owed, into the app or provide them directly to our firm. You are not required to provide physical statements for all debts, but you must ensure all known creditors are listed to comply with bankruptcy disclosure rules. Failure to list a creditor can lead to complications, such as non-discharge of the debt. For specific questions about identifying or listing your debts, our attorneys will provide detailed guidance once we reach the filing stage after attorney fees and filing fees are paid.

Breakdown and Explanation:

• Using Our App: Our firm’s app connects to credit reporting agencies to pull your credit report, listing most debts (e.g., credit cards, loans, collections). This reduces the need to manually gather statements.
• Non-Reported Debts: Some debts, like recent medical bills or private loans, may not appear on your credit report. You must identify these through other records (e.g., bills, emails, or creditor correspondence) and enter them manually.
• Legal Requirement: Bankruptcy law requires listing all creditors, even if you lack statements. The app or manual entry ensures compliance with this rule.
• Consequences of Omission: Failing to list a creditor risks non-discharge of their debt, allowing them to pursue collection post-bankruptcy.

Answer: Whether you can pay attorney fees and court filing fees with a credit card depends on our firm’s policies and bankruptcy court rules. At Majors Law Group, we may accept credit card payments for attorney fees, subject to our payment processing terms, but you should confirm this with our office when retaining our services. However, using a credit card to pay attorney fees or filing fees can raise concerns in bankruptcy, as new credit card debt incurred shortly before filing may be scrutinized by the trustee for potential fraud or non-dischargeability. Court filing fees ($338 for Chapter 7 and $313 for Chapter 13 as of 2025) are typically not payable by credit card directly to the bankruptcy court, but alternative payment methods (e.g., money order, cashier’s check) are required. In Chapter 7, low-income filers may request a fee waiver or installment payments, and in Chapter 13, the filing fee is often included in the repayment plan. For specific questions about payment options for your case, our attorneys will provide detailed guidance once we reach the filing stage after attorney fees and filing fees are paid.

Breakdown and Explanation:

• Attorney Fees: Our firm may allow credit card payments for attorney fees, but this is subject to our payment policies and must be confirmed during the retention process.
• Court Filing Fees: Bankruptcy courts generally do not accept credit cards for filing fees. You must use approved payment methods, such as cashier’s checks or money orders, unless a waiver or installment plan is granted.
• Risks of Using Credit Cards: Incurring new credit card debt to pay fees close to filing may be viewed as an attempt to discharge that debt through bankruptcy, potentially leading to objections from the trustee or creditors.
• Chapter 7 and Chapter 13 Options: In Chapter 7, low-income filers may qualify for a fee waiver if income is below 150% of the federal poverty guidelines. In Chapter 13, filing fees can often be paid through the plan, reducing upfront costs.

Answer: Before filing for Chapter 7 or Chapter 13 bankruptcy, certain actions can complicate your case or lead to adverse consequences. We generally advise clients to avoid the following: 1) Withdrawing large amounts of cash without keeping receipts, as the trustee may presume the funds are missing and require repayment to the estate; 2) Transferring property without receiving fair market value, which may be deemed a fraudulent transfer; and 3) Repaying insiders (e.g., family or friends) within one year or ordinary creditors within 90 days before filing, as these may be considered preferential payments. These actions can lead to trustee objections, recovery actions, or denial of discharge. For specific questions about actions to avoid in your case, our attorneys will provide detailed guidance once we reach the filing stage after attorney fees and filing fees are paid.

Breakdown and Explanation:

• Withdrawing Cash Without Receipts:
  • Issue: Withdrawing significant cash before filing without documenting how it was spent can raise suspicions. The trustee may presume the funds are hidden assets and demand repayment to the bankruptcy estate.
  • Example: You withdraw $5,000 from your bank account a month before filing to pay for miscellaneous expenses but have no receipts. The trustee questions the withdrawal during the 341 meeting and may require you to repay $5,000 to the estate, assuming it was hidden or improperly spent.
  • Advice: Keep detailed records and receipts for all cash expenditures in the months leading up to filing to demonstrate legitimate use of funds.
• Transferring Property Without Fair Market Value:
  • Issue: Transferring assets (e.g., property, vehicles) to someone else without receiving fair market value within two years (or longer in some cases) before filing may be considered a fraudulent transfer, as it could be seen as an attempt to hide assets from creditors. The trustee can reverse the transfer and recover the asset for the estate.
  • Example: You transfer your car, worth $10,000, to a friend for $1,000 six months before filing to keep it out of bankruptcy. The trustee identifies this as a fraudulent transfer, reverses it, and includes the car in the bankruptcy estate for liquidation or plan payments.
  • Advice: Do not transfer assets for less than their fair market value before filing. Consult our firm before making any transfers to ensure compliance with bankruptcy rules.
• Paying Back Insiders or Creditors Before Filing:
  • Issue: Repaying insiders (e.g., family, friends, business partners) within one year or ordinary creditors (e.g., credit card companies) within 90 days before filing may be considered a preferential payment. The trustee can recover these payments to redistribute them equitably among creditors.
  • Example: You repay $3,000 to your sister for a personal loan six months before filing, or you pay off a $2,000 credit card balance 60 days before filing. The trustee may demand that your sister or the credit card company return the funds to the estate for distribution to all creditors.
  • Advice: Avoid repaying insiders or creditors selectively before filing. If you must make payments, discuss with our firm to understand the potential consequences.

Answer: Whether you lose your property, house, or cars in bankruptcy depends on the type of bankruptcy (Chapter 7 or Chapter 13) and the application of state or federal exemptions. At Majors Law Group, most of our clients receive “no-asset distribution reports,” meaning the trustee does not take assets because we are typically able to protect most assets using available exemptions. In Chapter 7, non-exempt assets may be sold by the trustee to pay creditors, but exemptions (e.g., Arizona’s homestead exemption up to $150,000 or Washington’s up to $125,000 for a home, and vehicle exemptions of $6,000 in Arizona or $3,250 in Washington as of 2025) often protect your house and cars if their equity falls within these limits. In Chapter 13, you generally keep your property by including secured debts (e.g., mortgage, car loans) in your repayment plan. Our attorneys will evaluate your assets and advise you of any risks of property loss during the filing stage to ensure you understand which assets may be at risk. For specific questions about protecting your property in bankruptcy, our attorneys will provide detailed guidance once we reach the filing stage after attorney fees and filing fees are paid.

Breakdown and Explanation:

• Exemptions in Bankruptcy: Exemptions are state or federal laws that protect certain assets from being sold in bankruptcy. Most clients’ homes and cars are fully or partially protected under exemptions like Arizona’s homestead ($150,000 equity) and vehicle ($6,000 per debtor) exemptions or Washington’s homestead ($125,000) and vehicle ($3,250) exemptions. If the equity in your property exceeds exemption limits, the trustee may sell it in Chapter 7, but we will advise you of these risks.
• Chapter 7 Impact: In Chapter 7, the trustee liquidates non-exempt assets. However, most of our clients have “no-asset” cases, meaning all assets are exempt or have no equity (e.g., a house with a mortgage equal to or greater than its value), so nothing is taken.
• Chapter 13 Impact: In Chapter 13, you retain your property by continuing payments through the plan, often restructuring debts (e.g., catching up on mortgage arrears or reducing car loan interest via “cramdown”).
• Risk Assessment: Our firm will review your assets, debts, and applicable exemptions to identify any property at risk of being taken. For example, if your home has significant equity beyond the homestead exemption, we will discuss options like Chapter 13 to protect it.

Answer: Common questions include:

• Did you review and sign your petition, and is it accurate?
• Have you listed all assets and creditors?
• Have you filed bankruptcy before?
• Has anything changed since filing?
• How did you value your assets?
• Are you owed a tax refund or involved in any lawsuits?

Trustees may ask about unusual items, like recent transfers or business interests.

Answer: Core documents for filing: Petition, schedules of assets/debts/income/expenses, statement of financial affairs, credit counseling certificate, and recent tax returns. For the 341 meeting: Photo ID, Social Security proof, pay stubs, bank statements, and any additional documents requested by the trustee (e.g., vehicle titles, mortgage statements). You must provide these to the trustee at least 7 days before the meeting.

Answer: In Chapter 7, if no issues, discharge occurs 60 days later. In Chapter 13, the court holds a confirmation hearing for your plan, then you begin payments. Complete debtor education for final discharge.

Answer: Most unsecured debts (e.g., credit cards, medical bills) are dischargeable, but not student loans, recent taxes, child support, or fraud-related debts. Chapter 13 discharges more types, like certain divorce obligations.

Answer: In Chapter 7, the trustee sells non-exempt assets and distributes proceeds. In Chapter 13, they review your plan, collect payments, and distribute to creditors.

Answer: Personal injury (PI) cases or unexpected assets (e.g., inheritances, gifts) acquired before or during bankruptcy must be disclosed as they are part of the bankruptcy estate. In Chapter 7, non-exempt proceeds from a PI case or unexpected assets may be liquidated to pay creditors. In Chapter 13, they may increase plan payments or require plan modification. Under Arizona law, PI settlements are generally not protected (exempt) and may be used to pay creditors, though specific exemptions (e.g., for certain personal injury compensation) may apply. Under Washington law, personal injury settlements can be partially exempt (up to $21,500 for personal bodily injury, excluding pain and suffering, or $10,750 for lost earnings, as of 2025). If not listed initially, you must amend your petition to include them, which may incur a $34 fee. Failure to disclose can lead to case dismissal or fraud allegations. For specific questions about PI cases or unexpected assets in your case, our attorneys will provide detailed guidance once we reach the filing stage after attorney fees and filing fees are paid.

Breakdown and Explanation:

• Personal Injury Cases: PI settlements or awards are assets. In Arizona, there’s no broad exemption for PI awards, so non-exempt portions are typically available for creditors. In Washington, exemptions protect specific portions (e.g., bodily injury up to $21,500), but pain and suffering awards are generally not exempt.
• Unexpected Assets: Assets acquired post-filing (e.g., inheritance within 180 days of Chapter 7 filing) must be reported. In Chapter 13, they may affect plan feasibility.
• Disclosure Requirement: All assets, even potential ones like pending PI claims, must be listed in schedules or amended promptly to avoid penalties.

Answer: If a creditor is not listed, you must amend your bankruptcy petition to include them, as all creditors must be disclosed. This involves filing amended schedules with the court, typically incurring a $34 fee. You must notify the omitted creditor by sending them the amended schedules and notice of the bankruptcy case. In Chapter 7, unlisted debts may not be discharged unless the case is a “no-asset” case, where no distribution is made to creditors. In Chapter 13, unlisted creditors may still file claims, but late claims may receive reduced payments. For specific questions about amending your petition, our attorneys will provide detailed guidance once we reach the filing stage after attorney fees and filing fees are paid.

Breakdown and Explanation:

• Why Amend? Omitting a creditor risks non-discharge of their debt and potential post-bankruptcy collection actions.
• Process: File amended Schedules D, E, or F with the court, pay the $34 fee, and serve the creditor with notice. The trustee and court must also be informed.
• Cost and Timing: The $34 fee applies per amendment. Prompt amendment minimizes complications, especially if the creditor attempts collection.

Answer: Filing bankruptcy triggers an automatic stay, which stops most wage garnishments immediately. In Chapter 7, garnishments stop, and non-priority debts (e.g., credit card debts) may be discharged. In Chapter 13, garnishments are halted, and debts are addressed through the repayment plan. You may recover pre-filing garnished funds if they were taken within 90 days before filing and exceed $600 (for non-priority debts), as these may be considered “preferential transfers.” A motion must be filed to recover these funds. For specific questions about garnishments or recovering funds, our attorneys will provide detailed guidance once we reach the filing stage after attorney fees and filing fees are paid.

Breakdown and Explanation:

• Automatic Stay: Stops garnishments for most debts (except certain priority debts like child support) upon filing.
• Preferential Transfers: Funds garnished within 90 days may be recoverable if they unfairly favor one creditor over others. Recovery requires a trustee or attorney motion.
• Chapter 13 Considerations: Garnished amounts may be factored into the repayment plan to ensure equitable creditor treatment.

Answer: Common motions in bankruptcy include:

• Relief from Stay: Creditors file to lift the automatic stay to pursue actions like foreclosure or repossession if you’re behind on payments or the asset isn’t adequately protected.
• Dismissal: The trustee or creditors may move to dismiss your case for non-compliance (e.g., missed payments, incomplete documents).
• Modification: In Chapter 13, you may file to modify the plan due to income or expense changes. Debtors or creditors may oppose motions, requiring a court hearing.

For specific questions about motions in your case, our attorneys will provide detailed guidance once we reach the filing stage after attorney fees and filing fees are paid.

Breakdown and Explanation:

• Relief from Stay: Granted if the creditor shows cause (e.g., no equity in the property, no payments). You can oppose by proving adequate protection or payment ability.
• Dismissal: Common in Chapter 13 for missed payments or failure to provide documents. Voluntary dismissal is also possible if bankruptcy is no longer needed.
• Modification: Requires updated financials and court approval to adjust plan terms.

Answer: Notices from the court or creditors provide important updates about your case, such as hearing dates, trustee requests, or creditor claims. Do not ignore them. Court notices may include the 341 meeting date, plan confirmation hearings, or motions (e.g., relief from stay). Creditor notices may involve proofs of claim or stay violations. Keep all notices and be prepared to provide them to our firm during the filing stage for review. For specific questions about notices, our attorneys will provide detailed guidance once we reach the filing stage after attorney fees and filing fees are paid.

Breakdown and Explanation:

• Court Notices: These are official and may require action (e.g., attending hearings, providing documents). Missing deadlines can lead to dismissal.
• Creditor Notices: May indicate attempts to collect debts (stay violations) or filed claims. Unauthorized collection attempts should be reported to the court.
• Handling: Organize notices chronologically and note any required actions or deadlines.

Answer: In Chapter 7 or 13, you can choose to surrender a vehicle (return it to the creditor) or retain it (keep making payments or redeem it). If you surrender, the creditor repossesses the vehicle, and any remaining debt is typically discharged. If you retain, you must stay current on payments or negotiate a reaffirmation agreement (Chapter 7) or include payments in the plan (Chapter 13). If the creditor doesn’t contact you post-discharge (e.g., to arrange repossession or confirm payments), the debt is likely discharged, but you should confirm with the creditor. For specific questions about vehicle surrender or retention, our attorneys will provide detailed guidance once we reach the filing stage after attorney fees and filing fees are paid.

Breakdown and Explanation:

• Surrender: The creditor takes the vehicle, and any deficiency balance is discharged, relieving you of further liability.
• Retention: Requires a reaffirmation agreement in Chapter 7 (legally binding you to the debt) or plan payments in Chapter 13. Non-contact post-discharge may indicate creditor error or discharge acceptance.
• Non-Contact Issues: Creditors may fail to act due to administrative oversight. You remain responsible for payments if retaining unless the debt is discharged.

Answer: If the trustee or court requests documents you believe you’ve already provided, do not refuse to comply. Verify with our firm what was submitted, as errors or miscommunications can occur. You may need to resubmit documents or provide additional clarification. Refusing to provide requested documents can lead to case dismissal or delays. If you believe no further documents are available, our firm can help explain this to the trustee or court. For specific questions about document requests, our attorneys will provide detailed guidance once we reach the filing stage after attorney fees and filing fees are paid.

Breakdown and Explanation:

• Why Requests Happen: Trustees may request duplicates due to missing files, unclear copies, or additional needs during review (e.g., 341 meeting or audits).
• Consequences of Non-Compliance: Failure to provide documents can lead to objections, dismissal, or denial of discharge.
• Resolution: Our firm will confirm what was submitted and work with you to address requests efficiently during the filing stage.

Answer: The bankruptcy trustee is an independent official appointed by the United States Trustee Program to oversee your bankruptcy case. In Chapter 7, the trustee’s primary role is to identify and sell non-exempt assets to pay creditors, review your petition for accuracy, and ensure compliance with bankruptcy laws. In Chapter 13, the trustee reviews your proposed repayment plan, collects monthly payments, distributes funds to creditors, and monitors plan compliance. The trustee also conducts the 341 meeting of creditors, where they question you about your finances. They act as an impartial administrator to ensure fairness to creditors and adherence to bankruptcy rules. For specific questions about the trustee’s role in your case, our attorneys will provide detailed guidance once we reach the filing stage after attorney fees and filing fees are paid.

Breakdown and Explanation:

• Chapter 7 Role: The trustee evaluates your assets, determines which are exempt, and liquidates non-exempt assets to pay creditors. They also investigate potential fraud or inaccuracies in your petition.
• Chapter 13 Role: The trustee assesses the feasibility of your repayment plan, ensures payments are made on time, and distributes funds to creditors according to the plan.
• Independence: The trustee is not your attorney or advocate but a neutral party ensuring the bankruptcy process follows legal requirements.

Answer: Reaffirming a vehicle or secured debt in bankruptcy means you agree to remain legally obligated to pay the debt, even after your bankruptcy case is discharged, in order to keep the collateral (e.g., a car or house). This is most common in Chapter 7 bankruptcy, where you sign a reaffirmation agreement with the creditor, which must be filed with the court before the discharge is granted (typically within 60 days after the 341 meeting). The agreement reinstates your personal liability for the debt, meaning you must continue making payments as agreed, and the creditor can pursue you for any deficiency if you default. In Chapter 13, reaffirmation is less common because secured debts are typically included in the repayment plan, allowing you to keep the collateral by making plan payments. Reaffirming is voluntary, but creditors may require it to avoid repossession or foreclosure if you want to retain the property. You can rescind a reaffirmation agreement within 60 days of filing it or before discharge, whichever is later. For specific questions about reaffirming debts in your case, our attorneys will provide detailed guidance once we reach the filing stage after attorney fees and filing fees are paid.

Breakdown and Explanation:

• Purpose of Reaffirmation: Reaffirming ensures you keep the collateral (e.g., vehicle, home) by agreeing to continue paying the debt, excluding it from the bankruptcy discharge.
• Chapter 7 Process: You negotiate with the creditor (e.g., auto lender) to sign a reaffirmation agreement, which the court reviews to ensure it’s in your best interest and doesn’t cause undue hardship. The court may hold a hearing if you’re unrepresented or if the agreement appears burdensome.
• Chapter 13 Context: Secured debts are usually handled through the plan, but reaffirmation may occur if you want to pay a debt directly outside the plan (e.g., to maintain regular mortgage payments).
• Risks and Benefits: Reaffirming allows you to keep the property but commits you to the debt, risking future liability (e.g., repossession with deficiency balance). Not reaffirming may lead to surrender of the collateral unless you redeem it or negotiate with the creditor.
• Rescission: You can cancel the agreement within the specified period, but you must notify the creditor and court promptly.

Answer: If you choose not to reaffirm a vehicle loan in Chapter 7 and decide to let the car go back to the creditor (surrender it), the vehicle is typically repossessed by the creditor, and the associated debt is discharged as part of your bankruptcy, relieving you of personal liability for any remaining balance (deficiency). In Chapter 13, if you surrender the vehicle, it’s returned to the creditor, and the debt is addressed through the plan, with any deficiency treated as an unsecured debt, often discharged at plan completion. If you stop making payments and don’t reaffirm in Chapter 7, the creditor can repossess the vehicle even if you’re current, as the automatic stay lifts upon discharge, and they’re not obligated to let you keep the car without a reaffirmation agreement. You must coordinate with the creditor to arrange surrender, typically by notifying them of your intent in your bankruptcy schedules (Statement of Intention in Chapter 7) or plan (Chapter 13). If the creditor delays or fails to repossess, you remain responsible for the vehicle (e.g., insurance, storage) until they take it. For specific questions about surrendering your vehicle in bankruptcy, our attorneys will provide detailed guidance once we reach the filing stage after attorney fees and filing fees are paid.

Breakdown and Explanation:

• Chapter 7 Surrender: By not reaffirming, you indicate your intent to surrender the vehicle in your Statement of Intention. The creditor repossesses it after the automatic stay lifts (at discharge), and the debt is discharged, meaning no liability for any deficiency balance (e.g., if the car’s sale doesn’t cover the loan).
• Chapter 13 Surrender: You propose surrender in your repayment plan. The creditor repossesses the vehicle, and any deficiency is treated as an unsecured claim, often receiving partial or no payment and discharged at plan completion.
• Creditor Repossession: Creditors typically arrange repossession post-discharge in Chapter 7 or after plan confirmation in Chapter 13. Delays may occur due to creditor oversight, but you must maintain the vehicle (e.g., insurance) until repossessed to avoid liability.
• Impact of Non-Reaffirmation: Without reaffirmation in Chapter 7, creditors may repossess even if you’re current, as they’re not obligated to let you keep the vehicle without a binding agreement. In Chapter 13, plan terms govern retention or surrender.
• Practical Steps: Notify the creditor of your intent to surrender, keep records of communications, and ensure the vehicle is accessible for repossession to avoid complications.

Answer: Overtime, bonuses, and pay changes can affect your Chapter 13 plan because they impact your Disposable Monthly Income (DMI). When calculating your initial plan payment, your average income from the six months before filing, including overtime and bonuses, is used. If you receive significant overtime or bonuses during your case, or if your pay increases or decreases, you must report these changes to the trustee, as they may require plan modification to adjust payments. A significant increase in income could raise your DMI, increasing payments to creditors, while a decrease might lower payments if you file a motion to modify. Failure to report changes can lead to objections or dismissal. For specific questions about income changes in your case, our attorneys will provide detailed guidance once we reach the filing stage after attorney fees and filing fees are paid.

Breakdown and Explanation:

• Initial Calculation: Overtime and bonuses from the six months pre-filing are included in your income for DMI calculation.
• Ongoing Changes: Post-filing income increases (e.g., regular bonuses) may require higher plan payments, while decreases (e.g., loss of overtime) may allow reduced payments via modification.
• Reporting Requirement: You must notify the trustee of significant income changes to ensure plan feasibility and compliance.

Answer: Yes, you can request to modify your Chapter 13 repayment plan if your financial circumstances change (e.g., income loss, increased expenses, or unexpected assets). Modification requires filing a motion with the court, proposing new plan terms, and obtaining court approval. Common reasons include job loss, medical expenses, or changes in mortgage payments. The modified plan must still be feasible and meet creditor requirements (e.g., paying priority debts in full). Creditors or the trustee may oppose the modification, requiring a hearing. For specific questions about modifying your plan, our attorneys will provide detailed guidance once we reach the filing stage after attorney fees and filing fees are paid.