Home Archives for Chapter 13

What Will the Trustee Ask Me at My Bankruptcy Hearing?

Posted on June 24, 2009 Written by

Here are the standard questions that the bankruptcy trustee asks debtors at chapter 7 and chapter 13 bankruptcy hearings also called a meeting of creditors or a 341 hearing.  The bankruptcy trustee is required to ask all debtors the first group of questions.  The second group of questions are suggestions at the trustee’s discretion.  These questions are printed in the trustee handbooks by the Executive Office of the U.S. Trustee.

REQUIRED STATEMENTS/QUESTIONS[1]

1.         State your name and current address for the record.

2.         Please provide your picture ID and Social Security number card for review. [Read more…]

Filed Under: Chapter 13, Chapter 7

Kansas City, Kansas "Till" Rate

Posted on June 3, 2009 Written by

The trustee’s discount rate (“Till rate”) paid on secured claims in chapter 13 bankruptcy cases filed in Kansas City, Kansas, is 4.75% for cases filed in June 2009.

Filed Under: Chapter 13

Topeka Chapter 13 Trustee Inducted into American College of Bankruptcy

Posted on March 28, 2009 Written by
Jan Hamilton Trustee

Jan Hamilton Trustee

Jan Michael Hamilton, standing chapter 13 bankruptcy trustee for cases filed in Topeka, was inducted into the American College of Bankruptcy Friday.   Hamilton was in the private practice of law from 1973 through 1999 when he was named to the trustee post.

Hamilton traveled to Washington, D.C., for the ceremony at the U.S. Supreme Court building.  Thirty three attorneys and judges were in the 20th class inducted into the college.

The American College of Bankruptcy is an honorary association [Read more…]

Filed Under: Chapter 13, Exemptions & What You Get to Keep, Financial Help, Kansas Bankruptcy News, Vehicles

What Interest Rate Does the Chapter 13 Bankruptcy Trustee Pay on Secured Claims?

Posted on March 10, 2009 Written by

EXPLANATION OF THE TOPEKA DISCOUNT RATE

by Jan Hamilton, Standing Chapter 13 Trustee

  • The Discount Rate (Interest Rate) for chapter 13 bankruptcy cases filed in Topeka, Kansas, on or after March 1, 2009, is 4.75%.

This rate will typically be changed no more than once a month, on the beginning of the
month.

Beginning on July 1, 2004, we began using our version of the Till rate. [Till v SCS Credit Corporation, 541 U.S. 465, 124 S. Ct. 1951 (2004)]. We start with the Wall Street Journal Prime as reported by www.bankrate.com. We will adjust prime for new cases filed once per month on the 1st day of each month. We then add 1.5% to that rate as the risk factor. This rate has never been challenged but certainly, in the appropriate case, the risk factor might be higher or lower.

This rate was approved by Judge Karlin in In re Lowder, Case No. 05-44802, in a decision entered on August 14, 2006. [Read more…]

Filed Under: Chapter 13, Financial Help, Foreclosure, Mortgages, Vehicles

Do Mortgage Arrears Get Paid Interest in Chapter 13 Bankruptcy?

Posted on March 8, 2009 Written by

DOES THE MORTGAGE CREDITOR GET INTEREST ON THE ARREARAGE PAID IN THE PLAN?

By Jan Hamilton, Standing Chapter 13 Trustee

Frequently, arrearages on real estate mortgages are paid through the plan. Do they bear interest or not? If they do, at what rate?

While Judge Somers has (essentially on behalf of all of the judges in Kansas), ruled on certain language in plans relating to mortgages, (In re Seal, Case No 05-17262, order entered March 6, 2007), the decision leaves open the question of whether interest is to be paid and at what rate.

Section 1322(e) was enacted as part of the Bankruptcy Reform Act of 1994 to overrule the Supreme Court decision in Rake v. Wade, 508 U.S. 464, (1993). [Read more…]

Filed Under: Chapter 13, Financial Help, Foreclosure, Mortgages

Judicial Modification of Mortgages in Bankruptcy to House Floor Wednesday

Posted on February 23, 2009 Written by

Judicial mortgage modification in chapter 13 bankruptcy is expected to be considered on the floor of the U.S. House of Representatives as early as Wednesday of this week.   The proposed law eliminates the ban on restructuring primary residential mortgages to help people save their homes from foreclosure.  The law change will help people in foreclosure who don’t want to file bankruptcy also,  Chip Parker, Jacksonville bankruptcy lawyer, writes in the Bankruptcy Law Network blog.

The bill will be part of a large package of financial services legislation.  You can support judicial modification of mortgages in chapter 13 bankruptcy by calling or faxing your Kansas Congressional delegation today.  Here is how to contact your member of Congress:

  • Sen. Sam Brownback,  (202) 224-6521, fax (202) 228-1265
  • Rep. Jerry Moran,  (202) 225-2715, fax (202) 225-5124 
  • Rep. Lynn Jenkins, (202) 225-6601, fax (202) 225-7986
  • Rep. Dennis Moore, (202) 225-2865, fax (202) 225-2807
  • Rep. Todd Tiahrt, (202) 225-6216, fax (202) 225-3489
Filed Under: Chapter 13, Foreclosure, Mortgages

How Do I Know the Chapter 13 Bankruptcy Trustee Got My Payment?

Posted on February 19, 2009 Written by

How do you know if the chapter 13 bankruptcy trustee received your plan payment?   The chapter 13 bankruptcy trustees in Kansas generally does not mail out receipts for your payments nor do they send you a monthly statement.  There is a handy way to monitor your case on the Internet.

Your canceled check or money order stub is your receipt.  If you are paying by wage order, your pay stub is your receipt.  Keep these records until your case completes in case there ever is an issue over payments.

If you have filed a chapter 13 bankruptcy case, you can signup for a free online access to your account data.  [Read more…]

Filed Under: Chapter 13

NPR Airs Story on Judicial Mortgage Modification in Chapter 13 Bankruptcy

Posted on February 12, 2009 Written by

Here is a report that aired on National Public Radio this morning about the judicial mortgage modification bill pending in Congress.

“On Capitol Hill, Democrats are supporting a bill that would let judges block home foreclosures. The measure would allow bankruptcy judges to alter home loans. Industry insiders say that would cause more harm than good, but economists disagree.”

Listen to today’s National Public Radio story

on judicial mortgage modification in chapter 13 bankruptcy.

Filed Under: Bankruptcy Legislation, Chapter 13, Foreclosure, Mortgages

Congress Considers Judicial Mortgage Modification in Chapter 13 Bankruptcy

Posted on February 11, 2009 Written by

The Helping Families Save Their Homes in Bankruptcy Act of 2009 is pending in Congress.  If passed, chapter 13 debtors will be able to  rewrite their delinquent mortgage loans by lowering the loan balance to the value of the home, reducing interest rates, eliminating the variable rate and fixing the interest rate, and stretching out the mortgage over 40 years.  The goal is to lower the payments enough to make them affordable for the borrower to keep the home and avoid foreclosure of the mortgage.

Mortgage bankers want your home not your money. They oppose the law change and are lobbying against the proposed legislation.

Filed Under: Bankruptcy Legislation, Chapter 13, Foreclosure, Mortgages

Save Your Home with Bankruptcy

Posted on February 3, 2009 Written by

Legislation is pending in Congress to change the law to allow judges to modify your home mortgage in chapter 13 bankruptcy. Delinquent mortgages could be stretched out to 40 years, principal due on the loan reduced to the value of the home, and adjustable rates changed to a low fixed rate if the Helping Families Save Their Homes in Bankruptcy Act of 2009 passes.  Judicial modification might lower the payments enough to make it possible to afford to stay in your home.

Contact your elected representatives today by email, phone or fax. This legislative, which President Barack Obama has pledged to sign, is on a fast track but opposed by the many in the mortgage and banking industries. Here is the contact information for contacting Congress: www.savehomewithbankruptcy.com/lobby.htm.

Filed Under: Bankruptcy Legislation, Chapter 13, Mortgages

Debtors Arrested for Ignoring Bankruptcy Court Orders, Spending Tax Refunds

Posted on February 1, 2009 Written by

Spending a tax refund that belongs to a bankruptcy estate or ignoring court orders may get you arrested by the U.S. Marshals Service and brought before the bankruptcy judge for contempt of court.

The moral of the story is don’t spend your tax refunds without talking to your bankruptcy lawyer first to make sure they are your refunds to spend.  Spending a refund that belongs to the bankruptcy estate can get you in a lot of hot water including denial of your discharge, judgment for the money and arrest if you ignore court orders to appear.

If you have made a mistake and spent refunds inappropriately, don’t ignore court orders.  Let you lawyer know so a plan can be made to make amends.  Getting arrested does not have to happen to you.

Judge Janice Miller Karlin of the U.S. Bankruptcy Court for the District of Kansas, Topeka Division, issued a new policy regarding bench warrants on January 26, 2009:

To assure the sanctity of this Court’s orders for turnover, appearance, etc., the Court will occasionally issue a Bench Warrant [Read more…]

Filed Under: Chapter 13, Chapter 7, Discharge, Exemptions & What You Get to Keep, Kansas Bankruptcy News, Trustees

What Else Should I Know About Filing Bankruptcy?

Posted on January 14, 2009 Written by

Utility services–Public utilities, such as the electric company, can not refuse or cut off service because you have filed for bankruptcy. However, the utility can require a deposit for future service and you do have to pay bills which arise after bankruptcy is filed.

Discrimination–An employer or government agency can not discriminate against you because you have filed for bankruptcy. Government agencies and private entities involved in student loan programs also can not discriminate against you based on a bankruptcy filing.

Driver’s license–If you lost your license solely because you couldn’t pay court-ordered damages caused in an accident, bankruptcy will allow you to get your license back.

Co-signers–If someone has co-signed a loan with you and you file for bankruptcy, the co-signer may have to pay your debt.  If you file under chapter 13, you may be able to protect co-signers, depending upon the terms of your chapter 13 plan.

Source: Answers to Common Bankruptcy Questions Pamphlet
National Consumer Law Center, Boston, MA
www.nclc.org

Remember:  The law often changes.  Each case is different.  This pamphlet is meant to give you general information and not to give you specific legal advice.

Filed Under: Chapter 13, Filing Bankruptcy

What Else Must I Do to Complete My Case?

Posted on January 12, 2009 Written by

After your case is filed, you must complete an approved course in personal finances.  This course will take approximately two hours to complete.

Many of the course providers give you a choice to take the course in-person at a designated location, over the Internet (usually by watching a video), or over the telephone.

Your attorney can give you a list of organizations that provide approved courses, or you can check the website for the United States Trustee Program office at www.usdoj.gov/ust.

In a chapter 7 case, you should sign up for the course soon after your case is filed.  If you file a chapter 13 case, you should ask your attorney when you should take the course.

Source: Answers to Common Bankruptcy Questions Pamphlet
National Consumer Law Center, Boston, MA
www.nclc.org

Remember:  The law often changes.  Each case is different.  This pamphlet is meant to give you general information and not to give you specific legal advice.

Filed Under: Chapter 13, Chapter 7, Discharge, Filing Bankruptcy

Will I Have to Go to Bankruptcy Court?

Posted on January 11, 2009 Written by

In most bankruptcy cases, you only have to go to a proceeding called the “meeting of creditors” to meet with the bankruptcy trustee and any creditor who chooses to come.  Most of the time, this meeting will be a short and simple procedure where you are asked a few questions about your bankruptcy forms and your financial situation.

Occasionally, if complications arise, or if you choose to dispute a debt, you may have to appear at a hearing.  In a chapter 13 case, you may also have to appear at a hearing when the judge decides whether your plan should be approved.  If you need to go to court, you will receive notice of the court date and time from the court and/or from your attorney.

Source: Answers to Common Bankruptcy Questions Pamphlet
National Consumer Law Center, Boston, MA
www.nclc.org

Remember:  The law often changes.  Each case is different.  This pamphlet is meant to give you general information and not to give you specific legal advice.

Filed Under: Chapter 13, Chapter 7, Filing Bankruptcy

Tax Refund in Bankruptcy

Posted on January 10, 2009 Written by

Cathy Moran on the Bankruptcy Soapbox reminds us of an important asset in bankruptcy:  tax refunds.

Your federal and state income tax refunds are property of the bankruptcy estate when you file bankruptcy in Kansas.  That is true for all refunds you are entitled to receive on the date your bankruptcy is filed, which includes the refunds for the year you filed that you will not receive until the following spring.

Example:  You file bankruptcy in January 2009.  The tax refunds for 2008 you will receive in 2009 belong to the bankruptcy trustee.  The trustee also will be entitled to a pro rata share of the 2009 refund you receive in 2010.

Kansas has no bankruptcy exemptions for tax refunds or earned income credits.  Some states do.

In chapter 13 bankruptcy, your tax refunds for years after you filed, we call post-petition years, are also property of the estate.

It is a federal crime to spend a tax refund that should be turned over to the bankruptcy trustee.  Your bankruptcy discharge can be denied.  It does not matter how much you need the money. The refunds will be sent to you and it is very tempting to keep the money.  Stop and call your lawyer to make sure you understand exactly what you are required to do with your tax refunds!

Filed Under: Bad Outcomes, Fraud, Crimes, Chapter 13, Chapter 7, Exemptions & What You Get to Keep

Congress Considers Bankruptcy Change to Help Homeowners Stop Foreclosure

Posted on January 7, 2009 Written by

Senate Bill 61, Helping Families Save Their Homes in Bankruptcy Act of 2009 was introduced in the U.S. Senate yesterday.  A similar bill was introduced in the House of Representatives today and President-Elect Barrack Obama has vowed to sign such a bill on January 21, the day after he is sworn in as President of the United States.

The bill would lift the ban in the bankruptcy code on modifying a home mortgage down (cram down) to the value of the home in chapter 13 bankruptcy.  The bill also would allow a bankruptcy judge to modify the mortgage interest rate and repayment time so the homeowner could afford to stay in his home.  [Read more…]

Filed Under: Chapter 13, Kansas Bankruptcy News, Mortgages
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