Most of the time the actions we take and the things we do, are considered as being public and as such they can be viewed by anyone. This fact also holds true for the individuals who have gone through with bankruptcy. Once you have filed for bankruptcy it becomes public property and anyone can look for your bankruptcy records.

In most cases prospective employers who are looking to employ someone will sometimes look in bankruptcy records. These records can be accessed by anyone. You can find this information by calling the bankruptcy courts’ voice automated service. This service will provide you the information that you require.

To gain this information you will need to supply the case number, social security number or the name of the person that you are looking for information about. You will also be able to access these bankruptcy records from the bankruptcy courts website.

At the moment the information about bankruptcy records is free but you should check to see if this is the case the next time that you look for various bankruptcy records. The bankruptcy records will contain lots of information about the bankruptcy case.

This information generally is the name of the person who is filing for bankruptcy and which bankruptcy for filed for. Additional information like bank account information, current and past residential addresses can be found from the bankruptcy records. You can also find the person’s social security number and their date of birth.

These bankruptcy records hold the information about the person’s family – the names of the spouse and the children – and employment records. Basically you will be able to access the entire life history of the person. This information is helpful if you want to know if the person has a history of finance problems.

In the bankruptcy records once you provide the case number of the bankruptcy case you will be able to look at the entire proceeding. This information will include the names of the lawyers who worked on the bankruptcy case. The various assets and property that were not part of the bankruptcy payment scheme will be listed as well.

Besides having information on bankruptcy clients bankruptcy records can deal with other matters that deal with bankruptcy. These matters can be the different types of information that are required for the various forms of bankruptcy. You can also access information about where to find and get the bankruptcy forms that you need.

While bankruptcy records hold information about a person who has gone through a bankruptcy case they are usually looked up by people who need this information for their company’s credit purposes. The system of public access makes this information readily available and easy to find.



Thanks to Muna wa Wanjiru for contributing this article to our Bankruptcy blog:

How To File Chapter 7 Bankruptcy

Now days, with the wide availability of bankruptcy form processing services on Internet, filing bankruptcy online has now become easier and the good part of the story is that the process is very easy and time saving. If you understand the legal requirements associated with filing bankruptcy and you know what are the forms that you need to fill and submit in this regard, you do not even require hiring a bankruptcy attorney to help you with the procedure of filing bankruptcy.

Ways To File Bankruptcy

In fact, there are plenty of ways you can use to file court petition for bankruptcy. For example, if you can hire bankruptcy lawyers to do the job for you or you can avail the various online bankruptcy services available on Internet, or if you are a legal expert and you know the ins and outs of the various bankruptcy laws, you may choose to go for personal filing.

How Much Does Filing Bankruptcy Online Cost?

Depending upon the type of filing process you have chosen, the costs will vary. For example, filing bankruptcy online for chapter 7 bankruptcy and chapter 13 may cost you somewhere around two hundred dollars or less, depending upon the type of bankruptcy you are filing for. If your bankruptcy case is a bit complicated and you know that you are not capable enough to defend your bankruptcy claims yourself successfully, it is always recommended to avail the valuable services of an expert bankruptcy attorney. They will never let you down. These days, even the bankruptcy lawyers choose to go for filing bankruptcy online, as it makes the process much easier and most importantly, it saves a lot of time both for the debtor and the bankruptcy attorney, but of course, it costs a little more.

Advantages Of Filing Bankruptcy Online

If you do not want to hire a bankruptcy attorney, it will be wiser for you to take advantage of the various online bankruptcy services. They are known as online bankruptcy form processors. They will help you in several ways. For example, when you submit your specific bankruptcy case to them along with all the relevant information, they will suggest you the right type of bankruptcy that you should claim for and they will provide you the right bankruptcy forms to fill. Once you submit those forms, they will review all the information you provided with the forms. If some information is missing, the online bankruptcy forms processor will inform you regarding the same and will ask you to submit the missing information.

Once they approve everything, on your request, they will even file a court petition for bankruptcy for you. This way, we can see that filing bankruptcy online will take away the pain out of the complicated proceedings.



Thanks to Apurva Shree for contributing this article to our Bankruptcy blog:

Mortgage Loan After Bankruptcy

There are two broad forms of bankruptcy, no matter your definition - Liquidation and reorganization. Liquidation is provided for in the United States under Chapter 7 of the Bankruptcy Code while Reorganization is covered under chapters11, 12 and 13.

CHAPTER 7

Chapter 7 bankruptcy is the chapter of the Bankruptcy Code that provides for the sale of the debtor’s non-exempt assets for the distribution of the proceeds to creditors (liquidation). Usually, a trustee collects the debtor’s assets, which forms the bankruptcy estate, under court supervision and “converts” it to cash for onward distribution to creditors. This is subject to the rights of the debtor to keep certain assets, which are exempt (for example personal clothing). Also, distribution of the liquidated assets is subject to the rights of secured creditors. As may be expected, most Chapter 7 bankruptcy cases are “no assets” cases, as the debtor literally has no assets that can be liquidated.

An individual or business filing for a Chapter 7 bankruptcy case is required to begin by filing a petition with the relevant bankruptcy court serving his area or the area where the business is registered or operated with its main assets.

The petition stage can be described as the declaration stage. The debtor will also need to provide other documents to the court in addition to their petition. This may include but not limited to;

§ A schedule of assets and liabilities

§ A schedule of current income and expenditures

§ A schedule of executory contracts and unexpired leases

§ A statement of monthly net income and any anticipated increase in income or expenses after filing.

Basically, the additional documents would capture all your assets, debts and financial affairs. On the average, the process may take up to six months and may cost the debtor in terms of filing, and administrative fees. Unfortunately, you cannot file a Chapter 7 bankruptcy if you have a bankruptcy discharge in the last six to eight years and also if your current financial affairs can permit a Chapter 13 bankruptcy. Debts like priority taxes, support, student loans, liens and any debts that were reaffirmed are not discharged under Chapter 7 Bankruptcy.

CHAPTER 11

Knowing the different types of bankruptcy is very importance especially if you are into business. Always remember that businesses sometimes hit a bad spell so you have to be prepared for any eventualities. If you are a business owner, you need to know about Chapter 11 Bankruptcy also known as Re-organization Bankruptcy. Since with type of bankruptcy involves Partnerships and Corporations, it is imperative you should know about this type of bankruptcy.

Under Chapter 11 Bankruptcy, businesses are allowed to propose payment plan to their creditors. The payment plan shall include the length of time needed for the business to recover and settle its financial obligations. Although there are some provisions under Chapter 11 Bankruptcy that are similar to Chapter 13 Bankruptcy, the two are quite different in the sense that Chapter 13 bankruptcy is more concerned with individuals. The fees that apply to partnerships and corporations are also different to those fees imposed on individuals who file for bankruptcy.

What Fees Apply Under Chapter 11 Bankruptcy?

A mandatory filing fee of $1,000 and additional $39 miscellaneous administrative fees apply under Chapter 11 Bankruptcy. In cases of joint petitions, only one filing fee is imposed. Since these fees are considered as mandatory, the failure of the debtor to pay these fees may cause the dismissal of the petition. Once the case is already in progress, the business or the petitioner may be required to pay the court trustee every quarter. The amount of the fees differs depending on the amount involved. In most cases, the fees would range from $250 up to $10,000.



Thanks to Legal Helpers for contributing this article to our Bankruptcy blog:

Chapter 13 Bankruptcy Plan

Since Limited Liability Corporations (LLC) are a relatively new type of business entity, LLC owners have some difficulty finding out how courts will treat their bankruptcy LLC cases. As an LLC declaring bankruptcy, the owner may get some liability protection since their business is a separate legal entity. However, this protection is not absolute. Why? B ecause as CEO of the legal entity, the owner has fiduciary duties that effectively give them the same liabilities as a sole proprietorship.

So some important questions remain. Will the judge treat them like an LLC, as a corporation or as a partnership? What will happen during a bankruptcy LLC when the company has only one owner? Currently, there is no code or law that directly addresses bankruptcy LLC proceedings.

Partnership Versus Corporation In Bankruptcy LLC

There are two different ways a bankruptcy court may handle the case of Limited Liability Corporation with a single owner. First, the judge may treat the bankruptcy LLC like a partnership. In this case the court would dissolve the LLC and deal out all remaining assets to creditors. Anything remaining goes to the owner. And as in most business bankruptcy cases, there isn’t usually much left.

But the judge may decide the LLC is a corporation. Here the judge would not dissolve the owner from the bankruptcy LLC. The former owner could give over ownership interest to another party. If the former owner decided not to do this, the bankruptcy judge would treat the former owner like a corporate shareholder. The owner would not have to give up stockholdings, just as a shareholder wouldn’t in a large corporation bankruptcy case. Usually under this scenrio, the owner ends up a little better off.

Legalities of a Bankruptcy LLC

One of the greatest drawbacks to filing bankruptcy as an LLC is that owner has no idea how the judge will treat them. Unfortunately, there are no specific rules for dealing with a Limited Liability Corporation in a business bankruptcy filing.

Because of this, there may be several different factors that a bankruptcy court considers when deciding what to do. The most important factor is the number of member owners in the corporation. That said bankruptcy laws do not define the number of individual owners a corporation must have, especially for an LLC.

Because the lines are so blurry here, it is hard to tell how the bankruptcy court will decide who needs to consent to the bankruptcy filing. All members of the LLC may have to consent to the bankruptcy LLC filing. On the contrary if the judge treats it like a corporation, then only one member must consent. Most often in LLC proceedings, the bankruptcy judge looks to state laws and codes to determine how to deal with the bankruptcy. Therefore these proceedings may vary from state to state.

Filing The Bankruptcy LLC

Before filing for bankruptcy as a corporation or partnership, schedule an appointment with a bankruptcy lawyer to discuss these issues. As an alternative, you can also talk to state or county bankruptcy officials who can clarify how they will determine the proper procedures for bankruptcy LLC. Make sure you interview several lawyers before you select one. They should specialize in bankruptcy and be well versed in the specific rules for your state. If possible, try to find an attorney who has experience filing bankruptcy cases for Limited Liability Corporations.



Thanks to Kevin Muir for contributing this article to our Bankruptcy blog:

How To File Chapter 7 Bankruptcy

 

BANKRUPTCY LITIGATION IN USA

 

INTRODUCTION

 

A bankruptcy case is a special kind of a civil case, involving people or companies who can no longer pay their debts.

 

Congress has established a special court, called as the bankruptcy court to adjudicate bankruptcy matters. Bankruptcy protects both the debtors and creditors

 

HIERARCHY OF COURTS

 

Ø     US Supreme Court

 

Ø     The Circuit court of appeals

 

Ø     The district courts or bankruptcy appellate tribunal (BAP )

 

Ø     The bankruptcy courts

 

GOVERNING LAWS

 

Ø     Title 11 Federal rules of bankruptcy procedure

 

Ø     Title 18 Crimes (sec.151 through 158 deals with bankruptcy fraud and other bankruptcy crimes). E.g.

 

Ø     Title 26 IRC Implication of tax avoidance

 

Ø     Title 28 Judiciary and judicial process

 

Ø     Federal rules of appellate procedure

 

Ø     Federal rules of Evidence.

 

BANKRUPTCY JUDGESHIPS

 

The judges to the bankruptcy courts are appointed by the judges of US circuit courts for such circuits for the period of 14 years. Currently there are 324 judgeships in the US.

 

THREE MAIN CHAPTERS ON BANKRUPTCY

 

There are mainly three chapters under the bankruptcy law in USA.

 

Chapter 7: liquidation

 

Chapter 11: Reorganization

 

Chapter 13: Adjustment of debt of the persons, having regular income.

 

CHAPTER 7: LIQUIDATION

 

Bankruptcy under this chapter offers a fresh start for the individuals. In this chapter, most of the debtor’s property will be sold to raise the amount of the creditor. If the value of the asset is more than the debt owed, the remaining amount will be paid to the debtor.

 

After, 2005 enactment by the congress, it is mandatory to pass the Means test in order to qualify for the filing bankruptcy under chapter 7.

 

How the case move through under chapter 7

 

1. Petition

 

The case begins with the filing of voluntary petition with the clerk of the bankruptcy court. Debtor must also file the following documents shortly after filing the petition, they are

 

1. the list if creditors

 

2. the schedule of assets

 

3. the statement of financial affairs

 

If the debtor is not in position to pay the fees at once, he can request for payment in installments.

 

It is not necessary that always the creditor must file the petition. Even the creditors can initiate the bankruptcy proceedings; these are called as the involuntary petitions. If the debtor has not more than 11 creditors, then the one creditor can file an involuntary petition. If it is more than 12 creditors, three creditors must join together to file a petition.

 

2. Automatic stay

 

Once the petition filed before the bankruptcy court, there will be an automatic stay. It stays the suits, claims, appeals filed against one another before or after

 

3. Trustee selection

 

After filing a voluntary petition in the bankruptcy court, a notice will be sent to all the creditors. The creditors are required to be present at the trustee selection. Then the case will be assigned to bankruptcy judge and added to the docket of the US Trustee. US trustees maintains the list of case trustees.These case trustees will liquidate the debtor property at the auction or at the private transactions and collect the money, deposit it in the account maintained for that purpose.

 

4. Creditors meeting

 

It is also called as the Sec.341 meeting. Interim trustee will preside over this meeting. After a notice issued to the creditors, creditors have to come before the court and attend the meeting. If the creditor is not found, it will be published in the newspapers on which date the creditors have to attend the court.

 

It is compulsory that the debtor must be present at the meeting. The debtor will be put under oath and he will be asked several questions by the creditors. The purpose of this meeting is get to know hidden assets or undervalued assets of the debtor. And finding out is there any claim by the debtor which would yield more money if pursued. And the goal is to accumulate more money for the bankruptcy estate.

 

5. Liquidation of assets

 

After the creditors meeting, the case trustees will sell the asset of the debtor either at the auction or at he private transactions.

 

If the debtor is the business, it will cease to exist. If it is an individual he will be discharged. However certain debts are not dischargeable such as the alimony, taxes etc.

 

6. Collection of the bankruptcy estate

 

Once the assets are liquidated, case trustee will deposits the amount in the bank account, along with any other amount accumulated from the legal suits.

 

7. Distribution of the bankruptcy estate

 

After the deposit of amount in the account, the amount deposited will be distributed among the creditors.

 

Majority of the cases are no asset cases. If there are no assets to distribute then the case trustee will simply file before the court a report no assets to distribute.

 

Even if there is money to distribute, sometimes the creditors would not get the whole amount which is due to him by the debtors. Sometimes some creditor will get less, some creditors will get more.

 

The question arises in our mind is that, who will be paid first. At the stage of distribution, the administration of the estate such as the professional fees of the trustee, attorney or accountant appointed by the bankruptcy estate will be paid first.

 

8. Claims

 

There are two kinds of the claim and creditors in the bankruptcy. One is the Secured claims and other one is an unsecured claims. Secured claims are one that gives the creditor an interest in property as assurance of payment. For example people will mortgage house in secure of loans. If the loan is not paid there will be foreclosure and sale of the house. Holder of unsecured claims cannot look into any such payments.

 

Under unsecured claims are again divided into two: Unsecured priority claims and unsecured non priority claims. Unsecured creditors who have priority must be paid first before paying to unsecured non priority claims.

 

In Campbell v. Countrywide Home Loans, Inc., 2008 U.S. App. LEXIS 21405 (5th Cir. October 13, 2008, Filed)

 

It was held that an automatic stay serves to protect the bankruptcy estate from actions taken by creditors outside the bankruptcy court forum, not legal actions taken within the bankruptcy court.

 

9. Conversion

 

A chapter 7 debtor has right to convert the chapter 7 case to one under chapter 11 or 13 at any time during the proceedings.

 

In re South Star Oil Co.,2008 Bankr. LEXIS 2426 (Bankr. D.Or., September 15, 2008, Decided) 

 

Held that a cause for conversion or the dismissal includes a number of criteria, including substantial or continuing loss to or diminution of the estate and the absence of a reasonable likelihood of rehabilitation

 

In Toibb v. Radloff, 501 U.S. 157 (1991)

 

In this case the voluntary petitioner, after discovering stock in an electronic power company, has substantial value, decided to avoid its liquidation by seeking conversion to chapter 11. His motion was granted and he was allowed to file a reorganization plan. But the court dismissed his petition finding that he did not qualify for relief under Chapter 11 because he was not engaged in an ongoing business. The District Court and the Court of Appeals affirmed.

 

10. Dispute resolution

 

The petition may be contested after filing the bankruptcy petition through the adversary proceedings. for example one party may initiate proceeding against the other by filing the complaint and questioning the validity of the petition such will be adjudicated if the parties are willing to adjudicate. There may even be motions objecting to the discharge of the debtor, objections to the sale of debtor’s property.

 

In Dewsnup v. Timm et al].

 

Petitioner Dewsnup, the debtor in a case under Chapter 7 of the Bankruptcy Code, filed an adversary proceeding, contending that the debt of approximately $120,000 that she owed to respondents exceeded the fair market value of the land securing the debt and that, therefore, the Bankruptcy Court should reduce respondents’ lien on the land to the land’s fair market value pursuant to 11 U. S. C. § 506(d), The court determined that the then value of the land in question was $39,000, but refused to grant the requested relief and entered a judgment of dismissal with prejudice. The District Court and the Court of Appeals affirmed.

 

Held: Section 506(d) does not allow Dewsnup to “strip down” respondents’ lien to the judicially determined value of the collateral, because respondents’ claim is secured by a lien and has been fully allowed pursuant to § 502 and, therefore, cannot be classified as “not an allowed secured claim” for purposes of the lien-voiding provision of § 506(d). Pp.414-420.

 

11. Discharge and closing of case

 

After the property of debtor is sold and distributed among its creditors, the debtor will get discharged. However the debts like alimony, child support and certain taxes which are due to the government cannot be get discharged.

 

In Roe v. College Access Network , 2008 U.S. App. LEXIS 21362 (10th Cir., October 9, 2008, Filed) 

 

It was held that a permanent medical condition will certainly contribute to the unlikelihood of a debtor earning enough money to repay her student loan debt, but such a condition is not a prerequisite to discharging the debt.

 

In re Hlavin, 2008 Bankr. LEXIS 2397 (Bankr. D. Ohio, September 30, 2008, Decided) 

 

It was held that under 11 U.S.C.S. § 707(b)(1), the court may dismiss a case filed by an individual debtor under Chapter 7 whose debts are primarily consumer debts if it finds that the granting of relief would be an abuse of the provisions of Chapter 7.  

 

12. Appeal

 

When there is a discharge of the debt or dismissal of the bankruptcy petition, there may be an appeal. If the petition dismissed, the debtor may go an appeal. If there is discharge without any payment to the creditors, the creditors may go an appeal. Appeal may be preferred either to the district court or to the bankruptcy appellate panel. Where there is no bankruptcy appellate panel, appeal is always preferred to the district court.

 

CHAPTER 11: REORGANIZATION

 

This chapter is known as the business reorganization chapter. Sometimes individuals may also seek remedy under this chapter. Once the petition is filed under this chapter the debtor shall also file plan of reorganization.

 

Debtor is also required to file following documents along with the voluntary petition.

 

Ø     Schedules A through J

 

Ø     Summary of Schedules

 

Ø     Statement of Financial Affairs

 

Ø     Matrix

 

Ø     Statement of No Prior Filing

 

Ø     List of Equity Security Holders

 

Ø     Corporate Resolution (when applicable)

 

Ø     Pro Se Debtor’s Statement

 

How the proceedings takes place under chapter 11

 

1. Petition

 

There will be a voluntary or involuntary petition

 

2. Automatic stay

 

There will be an automatic stay after the petition is filed.

 

In re Forletta, 2008 Bankr. LEXIS 2491 (Bankr. D.N.Y., October 10, 2008, Decided) 

Held: debtor could not extend the automatic stay under 11 U.S.C.S. § 362(c)(3)(B) because the debtor’s earlier Chapter 7 proceeding was closed on a final decree and discharge under 11 U.S.C.S. § 727 and § 362(c)(3)(B) did not apply unless the case had been dismissed under 11 U.S.C.S. § 707. Extension of stay was warranted under § 362(c) (3)(C).

 

3. Continued control by management

 

As in chapter 7 case, the US trustee doesn’t appoint a case trustee; instead the US trustee monitors the progress of the case. He reviews the financial reports of the debtor, who continued to operate the business and adequacy of the disclosure statement and reorganization plan.

 

4. Role of the creditors committee

 

There will be an unsecured creditors committee appointed by the US trustee who is willing to serve monitor the case. Unsecured creditors cannot look at he specific property of the debtor.

 

Difference secured claim and unsecured claim

 

A secured claim is one that gives the creditor an interest in property as assurance of payment, such as a mortgage on the house to secure a home loan; the holder of an unsecured claim can’t look to any specific property of the debtor for payment. The committee negotiates with the debtor to develop a plan that will protect the interests of unsecured creditors. Because there is no case trustee in a Chapter 11 case, the committee has the authority to perform investigative functions, such as reviewing the debtor’s assets, liabilities, and financial conduct to determine its ability to continue in business.

 

5. Creditors meeting

 

It is also called as the 341 meeting. It may take place within 20 to 40 days of filing the bankruptcy petition. Debtor takes an oath in this. Usually US trustee or the assistant presides at the 341 meeting.

 

6. Plan of reorganization

 

It is a Debtor’s proposal to repay the amount in certain period. Debtor files it in the court for its approval.

 

7. Disclosure and disclosure statement

 

The debtor must file the disclosure statement which must be approved by the court. Once this filed there will be a disclosure hearing. Sometimes the creditors may oppose to it. Once the disclosure statement is approved he or she will also set a time limit on voting for or against the reorganization plan.

 

8. Voting and confirmation

 

Once the debtor has the reorganization plan the court must approve or confirm the plan. Before confirmation hearing, each class of creditors votes separately by mail on whether to accept the plan. If a majority of the voters in each class and holders of two-thirds of the amount of claims in each class approve the plan, the court will generally confirm the plan. The plan then becomes binding on all of the pre confirmation creditors, whether they voted for or against it.

 

If majority of the creditors did not approve the plan, then the debtor may attempt a cram down.

 

9. Discharge

 

After the reorganization plan is confirmed the debtor gets a discharge. Most claims for pre confirmation debts are wiped out. The debtor only has to pay the debts spelled in the plan.

 

Custom Mortg. Solutions, Inc. v. Hood (In re Hood), 

 

2008 Bankr. LEXIS 2474 (Bankr. D. Ill., October 2, 2008, Decided) 

A plaintiff has the burden of proof by preponderance of the evidence to show that the debt in question is non-dischargeable under 11 U.S.C.S. § 523(a)(6).

 

In re Timmerman, 379 B.R. 838, 2007 Bankr. LEXIS 4055 (Bankr. D. Iowa, December 10, 2007, Decided) 

Debtors were estopped from seeking dismissal of their bankruptcy action under 11 U.S.C.S. § 707(a) because they falsely stated that they had obtained credit counseling and had taken advantage of the bankruptcy laws for 21 months, and granting their motion would have prejudiced their creditors and impaired the integrity of the bankruptcy system.

 

10. Paying creditors

 

The debtor has to make payments according to the reorganization plan. If not met accordingly, the creditors can seek the liquidation of the debtor by moving to convert the cases to chapter 7, or they may sue to force the debtor to make the plan payments.

 

11. Dispute resolution

 

Suits, contesting matters will be resolved if any.

 

12. Appeal

 

Appeal is preferred either to the bankruptcy appellate tribunal or to the district courts.

 

CHAPTER 13:ADJUSTMENT OF DEBT OF THE PERSONS, HAVING REGULAR INCOME

 

Under this chapter debtor develops a plan, how he  or she proposes to repay creditors. By agreeing to use future income for plan payments, the debtor is able to keep his or her property.

 

Difference chapter 7 and chapter 13

 

In chapter 7 the debtor property is liquidated but it does not include future income.

 

But in the chapter 13 debtors is allowed to keep his property and the debtors have only 15 days to propose a plan, in contrast to the 120 days of chapter 11 debtors.

 

How the proceedings takes place

 

1. Petition

 

Debtor files a voluntary petition before the court. He is required also to file following documents:

 

Ø     Schedules A through J

 

Ø     Statement of Financial Affairs

 

Ø     Matrix

 

Ø     Statement of No Prior Filing

 

Ø     Plan

 

Ø     Disclosure of Compensation - FRBP 2016(b)

 

Ø     Pro Se Debtor’s Statement

 

Ø     Filing fee

 

2. Automatic stay

 

Once the petition is filed before the court, every suit concerning the debt recovery will be stayed.

 

.

 

3. Creditors meeting

 

It is also called as the 341 meeting. It may take place after the 15 to forty days after the petition is filed. Both creditors and the debtor attend it.

 

Chapter 13 trustees or Standing trustee presides over the 341 meeting.

 

4. Confirmation

 

Before the debtors plan takes effect, the court must approve the plan. It is the standing trustee’s job to review the plan and advice the court whether it seems workable or legal. Standing trustee has to recommend the plan. Creditors have no right to propose a new plan but they can oppose the plan.

 

5. Paying creditors

 

Within thirty days after filing the plan, the debtor must start paying the creditors. Debtor pays it to the trustee who then pays it to the creditors as provided for in the plan. The debtor has up to five years to pay of his debts.

 

6. Dispute resolution

 

Adversary proceedings if any contested matters will be resolved at this stage.

 

7. Discharge

 

After completion of plan payments, the debtor will receive a discharge. It discharges all debts except the long term home mortgage debts, alimony, child support obligations, and certain education loans.

 

8. Appeal

 

Appeal may preferred either to the district court or to the BAP.

 



Thanks to sadanand naik for contributing this article to our Bankruptcy blog:

Mortgage Loan After Bankruptcy