Bankruptcy FAQsBankruptcy FAQs and Survival GuidesChapter 7 FAQs and Survival Guide Please note: This information is provided to our clients to assist them in understanding and successfully completing a standard Chapter 7 proceeding. It is not intended to cover the multitude of problems that can arise in complicated cases or business bankruptcies. Questions about such cases should always be discussed with your attorney. This material is informative in character and is not intended as advertising. Our office features "FREE CONSULTATION AT ANY TIME." If you are concerned over a serious issue in your case, we recommend you call immediately and set up a free consultation that will be provided to you at a mutually convenient time. OR FREQUENTLY ASKED QUESTIONS Section I: GETTING STARTED1. What should I do if I have a question regarding my bankruptcy? A: First, review this Survival Guide! The answer to your question is probably included in this material. If your question is not answered, call our office and speak to one of our paralegals. Most of the time they will be able to answer your question. If not, simply direct your question to one of our attorneys. 2. I have an important question regarding my case that the paralegals can not answer, but I can not reach an attorney by telephone. What should I do? A: Each attorney at our firm makes every attempt to return all client calls within 24 hours. However, it may not always be possible for them to contact you as soon as you desire. If this occurs, call our office and set up an appointment to see an attorney. A FREE consultation will be set up for you so that your problem can be resolved. 3. Why is it important to list my ex‑spouse as a creditor? A: It is extremely important to list your ex‑spouse as a creditor so that you can obtain a discharge as to property settlement agreements that you may have failed to honor. The 1994 revisions to the Bankruptcy Code, under 11 U.S.C. 523(a)(15) may make debts subject to hold harmless agreements nondischargeable in a bankruptcy; however, your ex-spouse must except to your discharge by means of an adversary proceeding filed in your bankruptcy case. It is sometimes more safe for you to file a Chapter 13 if this is a problem. 4. Why is it is important that I keep my appointment to return to the office within fifteen (15) days of the date I file my shell bankruptcy petition? A: The Bankruptcy Court requires a complete set of financial documents called schedules be filed on every Chapter 7 case within fifteen days of the date the original petition is filed. If we file a petition for you in order to give you immediate protection from legal action or law suits being pursued against you by one of your creditors, we must still file your schedules within fifteen days of the date we file your petition. You must supply us with the information contained in the schedules, review the information, and then sign your schedules before we can submit them to the Court. 5. My employment contract with Jim Morrison & Associates, PC requires that I immediately inform them in writing of a change of address or telephone number for either work or home. Why is this necessary? A: If there is any sort of problem or attack against your bankruptcy we must be able to contact you to effectively represent your interests. For instance, if we receive a motion by a creditor to take back your property or to oppose your discharge, we must be able to notify you of what needs to be done to protect your property. Section II: LISTING DEBTS6. Must I list all my debts in my bankruptcy? A: YES, you must! One of the basic principles of bankruptcy law is that all similar creditors must receive similar treatment through the bankruptcy. Since a creditor who is not listed is may not be discharged, a creditor who is not listed would survive the bankruptcy with a collectible debt (they could sue you). You must list everyone to whom you may owe money. When you sign your papers, you are swearing (declaring under oath) that you have listed all of your creditors. 7. Must I list debts I owe to relatives or friends? A: Yes. You must list all debts that you owe as of your filing date. Remember, when you sign your papers, you are declaring under oath that you have listed all your creditors. 8. I am divorced. Must I list debts I had with my ex‑spouse? A: Yes. Again, all debts must be listed. In addition, you must also list your ex‑spouse as a creditor so as to discharge any subrogation claim he or she may have against you. 9. Why must I list my ex‑spouse as a creditor? A: If you and your ex‑spouse had joint debts, you are both liable for payment of the debts. In addition, you are liable to each other for the payments and are, therefore, both creditors of each other. For your protection, it is absolutely necessary that we discharge debts owed to your ex‑spouse in the Chapter 7. 10. Should I include business debts from a former business? A: Yes. List all your debts! If you do have former business debts, indicate on your schedules that the debts are from a former business. 11. Do I include such debts as current utility bills and insurance premiums currently due in my list of debts? A: No, you should not list utility bills or insurance premiums on utility services or insurance policies you currently have in effect. However, if you have such debts from previous services that you have been unable to pay, you must include those debts. 12. What if I owe a debt for merchandise of which I no longer have possession? A: You must still list the debt in your schedules. You should also discuss this situation with your attorney during your consultation as it can sometimes be a complicated matter. 13. Should I list guarantors on my home loans or other loans such as the Veterans Administration (VA) or the Federal Housing Authority (FHA)? A: Yes. Often, mortgage companies will collect from guarantors who can then sue you if they are not listed in your bankruptcy. It is essential to list all of your guarantors and cosigners on any debts. If you have failed to do so, you must contact our office immediately. 14 Should I list creditors in my bankruptcy if I feel the debt is uncertain or disputed? A: Yes. You must list even uncertain, contingent, or disputed debts in your bankruptcy. Failure to do so means that any protection afforded by bankruptcy may not apply to those debts. Those debts may survive the bankruptcy and creditors may commence legal proceedings to collect following discharge. 15. What if someone has cosigned on my debt? Do I need to list that person as a creditor in my bankruptcy? A: Yes. You must list this cosigner on the debt because they can sue you for nonpayment. If someone has co‑signed a debt for you, they have agreed to be responsible for the payments if you fail to pay. You should be aware that if this is a debt which you wish to have discharged, the creditor, in most instances, will attempt collection from the cosigner. Should the cosigner not be able or refuse to pay the debt, the creditor may take legal action against the cosigner. The cosigner could then sue you. This is a matter you should discuss with your attorney. 16. Must I list debts on which I have cosigned for someone else? A: Yes. If you have cosigned on a debt for someone, you are liable for that debt should they not pay the debt (the creditor could sue you if not discharged in the bankruptcy). 17. Are there debts I should continue to pay? A: There may be. If you have an obviously nondischargeable debt (i.e.: child support), you should certainly continue to timely pay it. In addition, if you have a debt which is secured by property you want to keep (for example your home or car), you should be current on these debts or become current as quickly as possible (if you are not current) and make all the payments during your bankruptcy and afterward. Likewise you must keep the property fully insured (full coverage insurance). If you do not do so, when you receive your discharge, the creditor will be able to repossess or foreclose against the property. They cannot demand a deficiency payment from you if you have not signed reaffirmation agreement during your bankruptcy, but since they are secured and their lien survives bankruptcy, you must be current at the time of discharge or you will likely lose that asset. 18. What happens if I forget a debt and need to add it after my case is filed? A: It is sometimes possible to add a creditor after your case has been filed, but the sooner a debt is added, the easier it is to do. If the First Meeting of Creditors has been held, it is difficult to add a creditor. If the Discharge order has been entered, it is almost impossible. If you discover the existence of an unlisted creditor, simply supply all the information on the debt to our office in writing as soon as possible. There will be an additional fee of at least $76.00 to add a creditor, but it must be done as soon as possible. Remember, a creditor not listed may not be discharged in the bankruptcy. 19. Why are creditors' addresses so important? A: Because a creditor who does not get notice of the filing of a bankruptcy within a very few months of its filing may not be discharged, it is very important that the address to which the notice is sent be correct. A creditor who is not notified retains its original rights to try to collect its debt. For example, they could still call, write, or sue you. If you have more than one address for a creditor then give us all the addresses you have available. This will help quickly notify your creditors of your filing. If the notice comes back to us, we will contact you to search your records for a current address. This is very important and is well worth the time and trouble it may take to get a correct address. In addition, please be advised that there will be an additional fee to notice the creditor at the corrected address. To avoid any additional fees, please be sure that the initial address you give us for a creditor is the correct address. 20. Are all debts discharged? A: No, some types of debts are never discharged and some debts may not be discharged. The types of debts that are never discharged include alimony and child support. Income taxes are not usually discharged. Fraudulent debts may not be discharged if a creditor files the proper complaint to prevent the discharge within 60 days of your First Meeting of Creditors and the Court rules in their favor. Debts which are the result of driving while intoxicated are usually not dischargeable. Government backed student loans are usually not dischargeable absent highly unusual physical or mental "hardship" factors. Dischargeability is a complicated subject and any questions you have about a specific debt should be discussed with your attorney. 21. Can I pay a discharged debt? A: Certainly. Once the bankruptcy case is finished (you receive your discharge), You MAY voluntarily pay any discharged debt. The payment of one creditor does not revive any rights of the other creditors. Partial payment after the case has been completed does not revive the creditor=s right to demand the entire balance. Since the creditor has no right to repayment, your repayment whether partial or full is not considered to be preferring one creditor over another creditor (preference). However, paying a creditor after your discharge can have an impact on your credit report. This impact may be positive, but it is sometimes negative. Consult with your attorney before deciding to pay a creditor after your discharge is granted. 22. What should I do if I continue to receive bills? A: If the bills are computerized statements or letters, you should not be disturbed if you continue to receive them for six to eight weeks following the filing of your case. Personalized letters or threats to sue should be brought to our attention immediately so that we can contact the creditor. If you are contacted by telephone, give the creditor your bankruptcy number, our name (Jim Morrison & Associates, PC), and our telephone number. Tell the person that they can verify the bankruptcy filing with US. You should note the person's name, telephone number, and the date of the call. Keep the information for possible future action to enforce the automatic stay (bankruptcy protection). 23. What should I do when a creditor calls at home or work? A: First of all, remember there is no need to overreact or get upset. Handle the call in a business‑like fashion by telling the creditor the following facts: (1)That you have filed Chapter 7 Bankruptcy; (2)The date that your case was filed; (3)The case number of your bankruptcy; (4)That you are represented by Jim Morrison & Associates, PC and that any further questions regarding the creditor's debt should be directed to our office (be sure to give them our telephone number and address); (5)That they are prohibited from attempting to contact you directly under order of the Bankruptcy Court and any further attempts by them to contact you except through your attorney will be immediately reported to us and appropriate action will be taken. SECTION III: LISTING ASSETS 24. Must I list all my assets in my bankruptcy? A: Yes. One of the most serious mistakes anyone can make in a bankruptcy case is to try to conceal property from the Trustee or the Court. If the Court believes that any failure to list an asset was deliberate, the Court will not discharge your debts and may certify your case to the United States Attorney for possible criminal prosecution. Once again, when you sign your bankruptcy papers you are declaring under oath that they are correct to the best of your knowledge. Intentionally failing to list property is not only perjury, but a federal bankruptcy crime as well. If you mistakenly omit any asset from your papers, let us know immediately. We can amend your papers for some time after they are filed. 25. I have recently received the right to receive an inheritance from the estate of a relative must I disclose this information to my attorney? A: Yes. It may be necessary to list the inheritance as an asset in your schedules. This information must be discussed with your attorney. It is important to disclose this information. DO NOT ATTEMPT TO CONCEAL AN ASSET FROM THE COURT OR TRUSTEE! 26. What should I do about automatic payroll deductions taken from my paycheck? A: Payroll deductions which are being used to pay unsecured creditors are not allowed once you have filed Chapter7 Bankruptcy. You must have these deductions stopped immediately. Contact your payroll department to have the deductions stopped. If the deductions are not stopped after you have instructed the appropriate department to do so, contact our office. SECTION IV: GENERAL INFORMATION 27. Can I buy or sell a house or car while my bankruptcy case is pending discharge? A: If you wish to buy another house or car, a lot depends upon the type of creditor and type of loan involved in your purchase. Many times a debtor can get a house which is being sold on a non‑qualifying assumption basis. In regards to purchasing a car, while most "tote‑the‑note" and used car companies are willing to finance a car for you especially if you have a cosigner or a large amount "down" to offer, most of our clients are able to finance a vehicle through alternate financing available at a dealership. Whether you are successful in obtaining financing on a house or car depends to a large degree on the particular creditor involved. Some creditors have a black‑and‑white policy from which they will not waiver concerning persons who have filed bankruptcy. Other creditors are more flexible and will take into account the reasons for your filing, your financial status, your ability to pay, and the amount of collateral or cash you have to offer as a down payment. In most instances, if you have equity in the house or car which you wish to sell and have made all payments on the house or car, you will be allowed to sell the property. However, in no instances should you proceed to sell either a house or car until the Bankruptcy Trustee has abandoned his interest in the property and our office has filed the necessary motion and obtained the necessary order from the Bankruptcy court allowing the sale of the property. This is a matter you should discuss thoroughly with your attorney as there are additional attorney fees involved. 28. Can I purchase anything while my case is pending? A: Yes, just as long as the funds to make the purchase are from your post‑filing wages or salary. 29. Can I sell personal belongings I own while my case is pending? A: You should not sell anything before the Trustee allows your exemptions and abandons the estate's interest in the exempt property. This will usually happen thirty (30) days after the First Meeting of Creditors is concluded. Once this occurs and after the Discharge Order is entered, you should be able to sell personal property as long as any lienholders on the property are paid off in full. At any time after the filing, you may do as you like with your post‑filing wages without consulting anyone. 30. Will this bankruptcy affect my tax refund? A: Your tax refund may be affected in many ways: (1) It may delay the processing of any refund since the Internal Revenue Service (IRS) is listed as a creditor in every case. If you owe the IRS money, you will not receive your refund. Since most tax debts are not dischargeable, the IRS will probably be able to offset your refund against any tax liability in existence at the time of your filing. (2) If you are expecting a tax refund, you must disclose this asset to the paralegal when you are discussing your papers. If your refund can be listed as exempt property, you may be able to keep the refund. If it is non‑exempt property, it may have to be turned over to the Trustee. Whether or not your tax refund can be claimed as an exempt item must be determined on an individual basis. If you receive your refund check prior to your First Meeting of Creditors, do not spend the money until after the First Meeting of Creditors. The refund is classified as an asset in your estate and must be released by the Trustee before you are entitled or authorized to spend it. (3) Filing Chapter 7 Bankruptcy gives rise to a separate taxable estate. You may choose to file a short tax year. This is a matter that should he discussed with your tax advisor. We do not give tax advice. 31. May I have a bank account before the case is finished? A: Yes. The Trustee and the Court are concerned with the property you had on the filing date and not with anything you acquire after the bankruptcy is filed (except for gifts, windfalls and inheritances). With the exception of not opening an account with a bank or financial institution which is also one of your creditors (as a precaution against setoffs), you should be able to have a bank account during the pendency of your case as long as you maintain a small balance which you would not be hard pressed to lose if the bank put a freeze on the account. 32. May I maintain a savings account during my bankruptcy? A: Yes. Again, the Bankruptcy Court and the Trustee are concerned with the assets you have as of the filing date of your case. You are free to use your post‑filing wages any way you wish after you have filed. If you wish to save a part of your wages, there should be no problem in your doing so with a savings account. However, once again, you should not have a savings (or checking) account at an institution to which you owe a debt. Such an account should be completely closed out prior to your filing bankruptcy. 33. I have a savings account for my child on which I can sign. How will the bankruptcy affect this account? A: How the bankruptcy will affect an account of this nature depends on the actual capacity in which you are able to sign on the account. If you have total discretion in the use of the funds, the account will be considered an asset of your estate. If the account is strictly for the benefit of the child, it will not be considered an asset of your estate and the bankruptcy should have little effect on the account. This is an important matter and must be discussed in complete honesty with your attorney during your initial consultation or shortly thereafter. 34. What happens to money I earn after the case is filed? A: Wages and salary earned after the filing are yours to control. Commissions after the filing are also not part of the bankruptcy. A commission earned (entirely or partially) prior to filing must be discussed with your attorney. 35. How will my retirement benefits be affected by the bankruptcy? A: Retirement benefits are considered an asset of your estate and will be classified as either an exempt or a non‑exempt asset of the estate or a combination of the two. While most Individual Retirement Accounts (IRAs) and qualified retirement plans through an employer are considered exempt, the determination of whether your benefits are exempt or non‑exempt must be made on an individual basis. You should disclose the value of your benefits in detail during your discussions with your attorney for a better understanding of how the benefits will be affected. 36. Can I continue to pay an unsecured loan at the credit union affiliated with my place of employment? A: In most instances, you will be able to continue to pay an unsecured debt at your credit union. However, the payment of this debt may create preference issues in your case. Remember, generally, you may not prefer one unsecured creditor over another unsecured creditor in your bankruptcy. If you continued to pay your unsecured loan at the credit union, you would be preferring the credit union over other unsecured creditors. Further, the payment of this creditor may create disposable income issues in your budget. You should discuss this matter before your case is filed. 37. I owe the bank (or credit union) where I have my checking (and/or savings) account. Will this present a problem for me? A: Yes. If you owe the bank or credit union where you maintain a checking and/or savings account, the bank can freeze your accounts and apply the proceeds to any debt(s) that you may owe them. We advise that if you owe the bank or credit union where you bank, that you transfer your account to another financial institution to whom you do not owe money prior to the filing of your bankruptcy. 38. Will the filing of my bankruptcy be published in the paper? A: Normally, bankruptcy filings are not published as a routine matter in local newspapers. However, small business‑related newspapers do publicize bankruptcy filings in some instances. The filing of your bankruptcy is a matter of public record. Anyone who wishes to contact the Court to determine if you have filed bankruptcy may do so. Also, everyone listed on your mailing matrix in your bankruptcy schedules will receive notice of your filing. 39. Will my employer find out about my bankruptcy? A: No, unless one of the following three things occurs: (1) You decide to tell your employer; (2) your employer is also a creditor and is, therefore, listed on your bankruptcy mailing matrix; (3) your employer is informed by others (e.g.: creditors) that you have filed. The Bankruptcy Court does not notify your employer. Furthermore if it is necessary for our office to call you at work regarding your case, we will only identify ourselves as representatives of your attorney's office. We will not disclose the nature of the call nor inform the person that you have filed bankruptcy. We take this precaution not because we believe there is anything wrong with filing bankruptcy, of course, but simply because we wish to protect your privacy. 40. Can my employer legally discriminate against me because I filed bankruptcy? A: Generally, NO! The Bankruptcy Code expressly prohibits an employer from discriminating against an employee on the basis that the employee filed bankruptcy unless the bankruptcy disqualifies the employee from being able to fulfill the job duties of that position. 41 I am entitled to governmental benefits. Is there any way my filing can jeopardize the receipt of those benefits? A: No. The Bankruptcy Code expressly prohibits any governmental unit or agency from denying benefits to anyone because they filed bankruptcy. This includes all veterans= benefits such as disability, health care, retirement, and all benefits to which you are entitled as an employee of the city or state. 42. What should I do if I get sued while I am in bankruptcy? A: Immediately go the Clerk's Office of the Bankruptcy Court at 501 West Tenth Street, Fort Worth, Texas and get a certified copy of your bankruptcy petition. Take this copy to the Court where you are being sued and make sure the Court Clerk includes it in your file. Also, you must call our office regarding the problem and bring us a copy of the document you have received regarding the suit immediately. We will discuss with you the possibility of filing additional papers with the Court in which your case is pending to ensure that your rights are adequately safe‑guarded. 43. Can I move while my bankruptcy case is pending? A: Certainly, just be sure to keep our office informed in writing of your current address and telephone number so that we may contact you regarding the various hearing dates and to insure all schedules, etc. are complete and correct. 44. What happens to my case if I move out of Texas? A: Nothing special unless YOU want the case transferred to your new state. Since bankruptcy is a federal proceeding, the case may be transferred to another Bankruptcy Court in, another state. However, there may be an additional fee to do so. How this may affect your case needs to be discussed with your attorney. If you are able to return to Fort Worth for the First Meeting of Creditors, the case should not be affected at all in most instances. 45. How long will the bankruptcy be on my credit? A: Your Chapter 7 Bankruptcy filing will stay on your credit for ten (10) years from the date you file your case. 46. How long would the bankruptcy be on my credit if I had filed Chapter 13? A: Usually, the bankruptcy filing would be on your credit for seven (7) years had you filed a Chapter 13. However, this is rarely a reason for choosing one chapter over another. If you should have questions about this, please discuss this matter with your attorney before your case is filed. 47. At what point does my bankruptcy protection begin? A: The "automatic stay" or protection from creditor action occurs the instant that your petition is filed. The petition is a two page document which lists your name, address, social security number (or portion thereof), and other basic information. As soon as that petition is stamped by the Court at the clerk's office with a bankruptcy number, you have filed bankruptcy and are under the protection of the Court. The number with which your petition is stamped is your number alone and the same number is never issued to more than one case. The vast majority of cases today are filed electronically (over the internet) through a secure website; therefore, your case may be received and assigned a case number by a computer generated form instead of a stamp. This is why it is helpful to supply your creditors with your bankruptcy number. It is proof that you have actually filed. 48. Who notifies the creditors? A: The Bankruptcy Court is responsible for sending notice of your bankruptcy filing to all the creditors who appear on your mailing matrix. The Bankruptcy Court usually notifies your creditors in 10 ‑ 14 days. SECTION V: THE BANKRUPTCY TRUSTEE AND MEETING OF CREDITORS49. Who is the bankruptcy trustee? A: A Bankruptcy Trustee is an individual who is assigned by the Bankruptcy Court to administer bankruptcy cases. This individual represents the estate of the debtor. The Trustee claims any non‑exempt property of the debtor and sells the property for the estate. Once the non‑exempt property is sold, the Trustee distributes the proceeds (less the Trustee's expenses) among the creditors so that they receive a portion of their debts. Most Chapter 7 bankruptcy cases in Fort Worth are called "No Asset" cases. This means that there is no non‑exempt property of the estate for the Trustee to sell since all the property is exempt. The Trustee may request additional information from you. Should this transpire, you should promptly furnish any information requested. In addition, should you refuse to comply with bankruptcy laws, fail to furnish information requested by the Trustee, or fail to attend the First Meeting of Creditors without justifiable cause, the Trustee may ask the Court to dismiss the bankruptcy case. 50. What happens if my case is dismissed? A: Should your case be dismissed for any reason, your creditors may once again begin collection efforts against you. This includes proceeding with any legal actions that they may employ to collect their debt from you. 51. What happens at the first meeting of creditors? A: In general, the Trustee will ask you questions to be answered under oath about whether the information on your bankruptcy papers is true and correct to the best of your knowledge. It is very important that the information be as correct as possible, though it is recognized that you may not know the exact amounts owed to all your creditors or be able to evaluate your assets as well as a professional appraiser. In a Chapter 7 case, the Trustee will probably ask you if you have inherited anything or been given anything since the case was filed. If you have received gifts or an inheritance within 180 days of the filing of your case, you must let this office know at once and also disclose this information to the Trustee at the Creditors meeting. Creditors who attend the First Meeting of Creditors (very few, if any, attend in most cases) are also allowed to ask questions about your financial condition. Most of the attending creditors will be secured creditors and will want to know if you intend to pay for the asset or if you intend to surrender it. As you know, if a creditor is secured, you must pay for the asset or surrender it. Some creditors may ask for a Reaffirmation Agreement. 52. What happens if I have filed jointly and my spouse cannot attend the first meeting of creditors? A: It is mandatory for both you and your spouse to attend the First Meeting of Creditors. If the inability of either you or your spouse to attend the meeting is due to serious illness or the potential loss of employment, the Trustee may accept the attendance of one of you at the meeting. It will be totally at the discretion of the Trustee as to whether he or she will accept the attendance of one of you or require that the meeting be re‑scheduled and insist that you both attend. If the meeting has to be rescheduled, there will be an additional fee of $200.00. In any event, it is much easier for both you and the court system if you plan on attending the meeting as scheduled. You should also be aware that your purposeful or negligent failure to attend the First Meeting may be grounds for the Trustee to dismiss your case. If you and your spouse have separated during the pendency of your bankruptcy filing, you should still both attend the First Meeting of Creditors. Neither of you are relieved of the responsibility of attending on the grounds of separation or divorce proceedings. 53. May I file for divorce during the bankruptcy? A: Yes, you may file for divorce while your bankruptcy is pending. However, if you and your spouse have joint debts on secured merchandise, the determination will have to be made as to who will keep what property and who will pay for what debt. This can prove to be quite a complicated matter should you have a substantial amount of secured debt or merchandise you wish to keep. In view of this, where possible, it is best to try to delay filing for divorce until you have received your discharge. If you and your spouse are contemplating divorce, you should discuss this matter with your attorney. SECTION VI: SECURED DEBTS, REAFFIRMATION, LIEN AVOIDANCE54. What is the difference between secured and unsecured debt? A: A secured debt is a debt which, if you do not pay, the creditor will pick up the property. When you incur the debt, you sign an agreement which states that if you do not pay the debt as called for in the agreement, the creditor may repossess or foreclose on the property. When you purchase an item such as a house, car, television, stereo, etc., this is a transaction which usually is a secured debt. If you do not pay for them, the creditor may demand that they be returned. An unsecured debt is a debt for which there is no property to repossess should you fail to pay the debt. The creditor's only recourse is to initiate legal proceedings against you in order to collect the debt unless, of course, you are in bankruptcy. Typical unsecured debts include signature loans and credit cards such as MasterCard and Visa, which are actually a line of credit issued to you through a financial institution. 55. What is a reaffirmation agreement? A: A Reaffirmation Agreement is a written agreement signed by both you and the creditor which allows a debt to survive the bankruptcy filing and may set out payment terms for a particular debt. The Court and your attorney will only approve a Reaffirmation Agreement after it is determined that the agreement is in your best interests, is one you can afford, and is voluntary. Once a debt is reaffirmed that debt survives the bankruptcy. If you do not pay the creditor of a reaffirmed debt, that creditor can repossess the collateral, call, write, and even sue you to collect the debt. Reaffirmations should be carefully considered. Before you agree to enter into a Reaffirmation Agreement, you should be certain that the required payments will not be a hardship to you or your dependents and that the asset is something worth retaining. Also, in certain instances, an informal reaffirmation agreement can be worked out which does not require court approval. 56. What happens if I do not reaffirm a secured debt? A: Usually, as long as you are current in making your payments and continue to make those payments, nothing will happen except that you will continue to pay for the collateral and the creditor will continue to accept payment. Once the debt is paid, the creditor will do whatever is usual to transfer title to you. However, during the bankruptcy case, the creditor can file a motion to make you reaffirm the debt, redeem the collateral, or give back the property. 57. If I reaffirm a debt, but later decide that I cannot afford the payments, can I get out of the agreement? A: If you reaffirm a debt, You may rescind the agreement at any time prior to discharge or within sixty (60) days after the date the agreement is filed with the Court, whichever is later. However, if this time has expired, you will be held to the terms of the agreement. 58. What is a lien avoidance? A: A lien avoidance refers to a method through which, in some specific instances, Chapter 7 debtors can erase or avoid a secured debt. It applies to the type of secured debt which occurs when pre-owned household goods are offered as collateral to secure a new loan from a finance company. It does not apply in a situation where a person buys new household goods or appliances from a creditor. If you are asked by our office to sign an affidavit for a Motion to Void a Lien, please come in as soon as possible to do so. We will then file this motion with the Court and attempt to void the lien on those particular assets. Once the lien is voided, the debt is classified as an unsecured debt and works much to your advantage. Likewise if a judgment has been rendered against you and you also own a homestead, it may be necessary for us to file a Motion to Avoid Judgment Lien with the Court. In that instance we would need for you to go to the Real Property Records for the county in which the homestead is located and obtain a copy of the abstract of judgment to include as part of the motion. If you are asked to provide this document by your paralegal, please do so as soon as possible. Once a copy of the Order Avoiding the Judgment Lien is filed in the Real Property Records of the county in which your homestead is located, Your title rights to your homestead will no longer be clouded by the Judgment. 59. Why must I furnish your office with a copy of any contracts I have signed with a finance company? A: We must review the contract to determine whether or not you have pledged household goods and, if so, whether or not those household goods are exempt item on which we can avoid the lien. 60. What does it mean to say that property is exempt or non‑exempt? A: Exempt property is property that the Trustee can not take to sell and pay the proceeds to your creditors. Non‑exempt property is property that the Trustee can sell. If you have non‑exempt property, your attorney will advise you of such, and it is possible that you will lose that property. As with most legal matters, there is a gray area between exempt and nonexempt property. In some instances, we may attempt to exempt some property which will ultimately be classified as nonexempt. You will be advised if you have any such property. SECTION VII: DISCHARGE61. Do I have to attend the discharge hearing? A: No. Generally, Discharge hearings are only necessary for individuals who do not have an attorney to represent them. However, please remember that ALL ATTORNEY=S FEES MUST BE PAID IN FULL BEFORE THIS DATE!! 62. What is the discharge order? A: This is an Order of the United States Bankruptcy Court which bars enforcement of all of your dischargeable debts. Some debts such as alimony, child support, most government guaranteed student loans, and most taxes are not dischargeable. Some debts may or may not be dischargeable and, in most cases, a creditor must file a complaint to have the court determine whether the debt is dischargeable before the discharge. We tell our clients whether they have any non‑dischargeable debts before the discharge hearing. The chances are that you do not have such a debt. Any questions about the dischargeability of any particular debt should be directed toward one of our attorneys. 63. What do I do if a creditor tries to collect a discharged debt? A: First, tell them about the bankruptcy and send them a copy of your discharge order. Keep a careful record of who contacted you and when they contacted you. If this does not stop the collection attempt, contact our office. It is very rare for a creditor to attempt to collect a discharged debt, but any such attempt requires immediate action. If a letter from our office does not stop the collection effort, you can re‑retain Jim Morrison & Associates, PC to file the appropriate papers with the Bankruptcy Court to enforce the discharge order. 64. When do I receive the discharge order? A: The discharge orders are sent out by the Bankruptcy Court and it generally takes approximately four months from the date your petition is filed. 65. Can a creditor prevent my debt from being discharged? A: A creditor cannot prevent most debts from being discharged, but a creditor can file an objection to a debt being discharged. If this happens, the Bankruptcy Court will determine whether or not the debt is a dischargeable debt. If the Court decides that the debt is a non‑dischargeable debt, the debt will survive the bankruptcy and you will be responsible for the payment of such debt. SECTION VIII: SECURED DEBTS AND MOTIONS FOR RELIEF FROM THE AUTOMATIC STAY66. What do the terms pre‑petition defaults and post‑petition defaults mean? A: Pre‑petition defaults are payments that you did not make to a creditor before the bankruptcy was filed. Post‑petition defaults are payments that you did not make to a creditor after the bankruptcy was filed. 67. What is the Automatic Stay and what is a Motion for Relief from the Automatic Stay? A: When you file your bankruptcy, an automatic "stay" or injunction occurs which stops all repossessions, foreclosures, lawsuits, and wage garnishments. If a creditor files a Motion for Relief from the Automatic Stay, he is asking for the permission of the Bankruptcy Court to repossess your property or to begin foreclosure proceedings. A creditor is not allowed to repossess or foreclose on your property after you file your bankruptcy without an express written court order. A Motion for Relief from the Automatic Stay is the judicial process a creditor must use to gain permission of the Bankruptcy Court to regain the property in question. 68. I am concerned that a creditor may come and unexpectedly take my house, car, or other property. Can this happen? A: Yes, but very rarely. Once you have filed, a creditor cannot legally repossess or foreclose on the collateral without a formal court order. Obtaining the Court's permission to repossess or foreclose on your property through a Motion for Relief from the Automatic Stay requires at least a month to occur since a formal hearing is required in addition to the filing of the motion. We will receive notice of the motion after is filed and will immediately react to file the necessary paperwork to prevent any default (or automatic) judgments against you unless you have specifically advised us that you intend to surrender the property to the creditor. We will contact you to attempt to settle the matter through negotiation with the creditor (which is one of the reasons it is so important for you to supply us with a correct phone number and address). If we can not negotiate a settlement, we will represent you in a hearing before the Court and the judge will make a decision on the matter. NOTE: If a creditor who is listed in your bankruptcy schedule does attempt to repossess or foreclose on your property without a court order, such action is not legal and there are measures we can take on your behalf to force the creditor to return the property. Keep in mind though that most creditors are aware of the bankruptcy rules and it is, therefore, very rare for a creditor to attempt such action without going through the lengthy steps (as outlined above) to gain the Court's permission. 69. What is a Section 362 proceeding? A: A Motion for Relief from the Automatic Stay and a Section 362 Proceeding are the same thing. A Motion for Relief from the Automatic Stay is essentially a request by a secured creditor for the bankruptcy judge's permission to repossess or foreclose on property. If you receive a copy of a Motion to Lift Stay on property you do not want to keep, simply contact our office and let us know that you do not want to keep the property. Also, send a written statement to our office stating your intention to surrender that particular asset. IF YOU RECEIVE A MOTION FOR RELIEF FROM THE AUTOMATIC STAY ON PROPERTY YOU WANT TO KEEP, MAKE AN APPOINTMENT TO SEE YOUR ATTORNEY AT ONCE! There are very short time limits on answering such a motion and once the deadlines are passed, there is nothing we can do to help you. 70. When can a creditor file a Motion for Relief from the Automatic Stay? A: A creditor can file a Motion for Relief from the Automatic Stay at any time that your bankruptcy is still active and on file with the Court. In a Chapter 7 Bankruptcy, this is anytime before your discharge. 71. What can I do to avoid a Motion for Relief from the Automatic Stay? A: First of all, make sure you make all payments at the appropriate time just as you have been instructed by our office. Secondly, make sure that your house, cars, and any other major pieces of equipment that you own are adequately insured. This means that each piece of property has full coverage insurance (including comprehensive) and lists the lienholder (or the creditor) as a "loss payee" on the face of your insurance policy. Provide a copy of your insurance directly to your creditor just as soon as possible after your case is filed. Following these steps will make it very unlikely that a Motion for Relief from the Automatic Stay will be filed against you. 72. What should I do if I receive a Motion for Relief from the Automatic Stay in the mail and I want to try and keep the property the creditor is attempting to get back? A: You must contact our office immediately to set up an appointment to help your attorney prepare a defense to the Motion. When you come for your appointment bring proof of insurance on the property in question and proof of any direct payments made to the objecting creditor since the filing of the bankruptcy. 73. I received a Motion for Relief from the Automatic Stay on a piece of property that I have decided to surrender or return to the creditor. What should I do? A: Notify our offices immediately of your desire to surrender the property. Next, send a note instructing us that you authorize Jim Morrison & Associates, PC to surrender the property on your behalf. Sign the note, date it, and mail it to us at your earliest convenience. This will be a big help to us and will let our bookkeeper know not to charge you for the $450.00 fee involved in a contested Motion for Relief from the Automatic Stay proceeding. 74. How many payments do I have to be delinquent before the mortgage company will file A Motion for Relief from the Automatic Stay? A: There is no definite answer. Each creditor reacts differently in its response time to a post‑petition default. Some creditors will file a motion on the basis that the payments are received late each month. Others will not file until several months of post‑petition arrears have accumulated. There is no way to predict when (or if) a creditor will file a Motion for Relief from the Automatic Stay. The safest thing to do, of course, is to make all required payments on time. 75. I am delinquent on my house (or car) payments. What should I do? A: Send in a partial payment if that is all you can afford. Send in the balance as soon as possible. If you have a contact at the mortgage company (such as a loan officer) with whom you have enjoyed a good relationship in the past, it might be helpful for you to call that person and inform him or her when you will be making your payment. Do not become overly distressed or lose sleep if you have not made just one mortgage payment or car payment since filing the bankruptcy. The chances of getting A Motion for Relief from the Automatic Stay@ are not as great if you are late on just one payment as if you have missed several payments since filing the bankruptcy. However, try to make every mortgage or car payment on time every month to eliminate the possibility of a motion being filed. The more delinquent you are in making your payments; the more likely it is that the mortgage company or car creditor will file a Motion for Relief from the Automatic Stay. 76. Is there anything I can do to increase the probability of receiving proper credit for the payments I make to the mortgage company? A: Yes. First, make sure payments are made on or before the due date. Second, on every check you send to the mortgage company you should include your loan number and bankruptcy number. Also, it is better to send your mortgage payments by personal check rather than by certified check or money order. Personal Checks are easier to replace if lost and provide better proof of payment than a carbon copy of a certified check or money order. 77. My mortgage company is returning the payments I sent after my bankruptcy was filed. What should I do? A: First of all, DO NOT SPEND THE MONEY! It is an error on the part of the mortgage company to return your mortgage payments after the filing of your bankruptcy. However, you will still owe the money and this will not stop them from demanding return of all the money once they find out their mistake. If this happens and you have already spent the returned funds, the mortgage company will file a Motion for Relief from the Automatic Stay to take back your property on the grounds that you failed to make all you post‑petition payments. What you should do is to take the returned payments, put them into a separate bank account (where you are not tempted to spend them), and contact our office about the problem. We will notify the attorney for the mortgage company about the situation. This will usually solve the problem. SECTION IX: SURRENDER OF PROPERTY78. I have indicated in my schedules that I will surrender or have decided to surrender certain property. Is it okay for me to pawn that property or incur new debt against it? A: Absolutely not! It would seem that this question should not need to be addressed. However, a few clients in the past have pledged or pawned goods they had indicated they would give back to the creditor. This is definitely not allowable and could lead to criminal action against you by the injured creditor. Please return the property involved as soon as possible unless the property is a house. 79. I have decided to surrender my house and have notified my attorney. I have moved (or will soon move) from my house. What should I do about the mortgage company? A: The best and most courteous thing to do in this event would be to send the mortgage Company a letter which notifies them of the date you have moved (or plan to move) and to enclose a set of keys to the property. Please send a copy of the letter to our office for inclusion in your file. 80. I have decided to surrender my house and have notified my attorney, but I don't have another place to live yet. What should I do? A: You may stay in the house for a period of time. The mortgage company cannot legally take back your house until you have received your discharge or they have received formal permission of the Bankruptcy Court to foreclose and have completed the required notice proceedings to post your property for foreclosure. This process can take several months to occur. In the meantime, there is nothing wrong, nor illegal, in staying without making mortgage payments. You can use the money you save and apply it to your moving costs and/or the down payment on a new house or apartment. 81. I have decided to surrender or give back my vehicle and have notified my attorney. What should I do now? A: In this situation, it is far better to voluntarily return the vehicle to the dealer from where you bought it rather than risk the embarrassment of a repossession by the creditor. When you return the vehicle to the dealership, talk to a person in charge (such as a manager or assistant manager). Tell the person why you a there and give the person the keys to the car. In exchange, ask for a note indicating that you returned the vehicle and the date on which it was returned. Please forward a copy of this note to our office for inclusion in your file. If the person is not willing to write the note, don't worry. It is not strictly necessary. Obtain the person's name and notify our office in writing informing us when, where, and to whom you returned the vehicle. 82. If I cannot afford to pay the insurance premiums on my house or car, what should I do? A: If you cannot afford to pay the insurance premiums on your house or car now, chances are that you will have difficulty later making your payments. In most instances, you will probably want to surrender the property. However, if this is only a temporary matter, we may be able to help by negotiating a workable solution with your creditor. You should remember that you must maintain adequate insurance coverage on your house or car at all times. Failure to do so will prompt your creditor to file a Motion for Relief from the Automatic Stay on your property so that they may repossess the property. If you are having difficulty providing insurance coverage, you should discuss the matter immediately with your attorney. 83. I could not afford to make the payments on my house or car and I let someone else take up the payments. How will the bankruptcy affect this situation? A: If someone other than yourself has possession of and is making the payments on secured property that you are responsible for, you must disclose this matter to your attorney. In all instances, you will still be required to list the creditor in your schedules. It will be the decision of the creditor as to whether they will continue to allow the third party making the payments to keep the property and continue making the payments. SECTION X: FORECLOSURE84. How will I know if the mortgage company has my property posted for foreclosure? A: You should know approximately three (3) weeks or more ahead of the foreclosure that the mortgage company has posted your property. You should receive a certified letter from them informing you that the property has been posted and the date on which it will be sold at foreclosure. 85. Once the mortgage company has my property posted, can they force me to move before the foreclosure date? A: No. The mortgage company cannot force you to move prior to foreclosure. Even after foreclosure, if you do not willingly move, the mortgage company must proceed through judicial means to evict you. 86. After the foreclosure, how long do I have to move from my residence? A: By far the best thing to do is to vacate the property shortly before the actual foreclosure day. If you are there after the foreclosure, the mortgage company can start eviction proceedings. To evict you, they must give you written notice that you have three (3) days to vacate the premises or they will begin eviction proceedings. If you have not moved within those three days, they will file suit in the Justice of the Peace Court. There will be an eviction hearing date if you have not moved. Again, it is better to avoid all of this by willingly vacating the property either before or an the foreclosure date. SECTION XI: APARTMENT LEASING87. I want to rent a new apartment while I am in bankruptcy. Is that possible? A: Yes, as long as your prospective landlord is willing to do so. If the rental application asks whether you have ever filed bankruptcy, you must answer Ayes@. Some landlords will not lease an apartment because you are in bankruptcy, but others will. It is better to search to find a landlord who will lease to you than to possibly commit a crime by falsely stating on your lease application that you have never filed bankruptcy. 88. I was turned down on my apartment lease application because I am in bankruptcy. Is there anything I can try to do to change their minds about leasing to me? A: You cannot force the apartment management to lease to you if they do not want to do so. However, as a practical strategy, you might offer a substantially larger deposit than they normally require or ask them how much of a deposit it would take to change their minds. This strategy has worked for many clients in the past and might work for you, too. It's worth a try! SECTION XII: LEASES89. What happens if I am leasing the house or car instead of buying it? A: If you are leasing your house or car, your lease will automatically be deemed "rejected" sixty (60) days from the date of your bankruptcy filing, unless we file on your behalf a "Motion to Assume Lease" with the Bankruptcy Court. If you wish to continue to keep the lease in force, it may be necessary for you to come into our office and sign a Motion for the Assumption of a Lease. If we do not execute this motion for you, your creditor has the right to repossess the property after the sixty day period has expired. However, please note that many times debtors are allowed to continue payments on the lease and the creditor does not opt to repossess the property. Also by not assuming the lease the liability associated with the lease can be discharged through the bankruptcy. 90. What exactly is a Motion for the Assumption of a Lease? A: A Motion for the Assumption of a Lease is a legal document by which both you and your creditor agree to reinstate the terms of the lease agreement on your property. If you sign such an agreement, you will he responsible according to the terms of the agreement and will be held liable should you fail to fulfill such terms. SECTION XIII: ATTORNEY CONTACT, FEES AND BILLING91. I have not heard anything from my attorney's office since I filed my case. Does that mean there is something wrong? A: No! Do not worry if you have not heard from our office. Generally, the only time You would be contacted by our office is if there is some type of problem. If everything is going smoothly there usually is no need to contact you. If there is a problem, such as a Motion for Relief from the Automatic Stay or an objection to your discharge, we will contact you regarding the necessary procedure. 92. I may have trouble making my monthly payment on my attorney fees. What should I do? A: First, send in what payment you can even if it is not the full amount. Second, call our office and speak to our bookkeeping department. Advise them of the problem and let them know when you will be able to make the payment in full. This will allow them to keep your account off our delinquency list and possibly avoid future problems (such as a motion by our office to withdraw as your attorneys of record due to non‑payment). 93. I have recently received a bill from my attorney's office, but I feel it may be incorrect, what should I do? A: If you feel your statement is incorrect, call our bookkeeping department and they will either explain the billing to you or, if there has been a mistake, they will adjust your account and send you a corrected statement. 94. If I incur additional attorney fees during my bankruptcy, how are the additional fees collected? A: f you incur additional fees, the fees will be added to your total charges. We will allow you one extra month in your payment plan to pay the additional fee. 95. If I fail to make payments to my attorney, what will happen? A: If you fail to make payments for your attorney fees and you fail to make any other arrangements with us, we may have no other option but to file a motion with the court to withdraw from your case as attorney of record due to non‑payment. If this should happen, you would be without appropriate legal representation in your bankruptcy. 96. If my attorney withdraws from my case, what will happen? A: If this should happen, you would be without appropriate legal representation in your bankruptcy case unless you hired new legal counsel. Should one of your creditors file a Motion for Relief from the Automatic Stay or an objection to Discharge, and you didn't hire new counsel, it would be totally up to you to know how to respond to the documents in order to prevent the creditor from repossessing your property or preventing your discharge. This is a very unattractive alternative to non‑payment of your attorney fees. It is much better to keep our bookkeeping department aware of any problem you may be having in making payments to our office. 97. If my attorney withdraws from my case or if the case is dismissed, may I re‑file my bankruptcy? A: Whether or not you may re‑file bankruptcy depends upon whether your case was dismissed or withdrawn from and why your case was dismissed or why your attorney withdrew from your case. You should discuss this matter with an attorney. SECTION XIV: TIPS FOR SUCCESS98. What are the most important things I can do to make my bankruptcy a success? A: Here is a list of the ten (10) most important things we feel you need to do in order to make your bankruptcy a success with our office: (1) Read this Survival Guide from start to finish; (2) Follow the instructions given to you by our office; (3) Follow any instructions which may be given to you by the Trustee; (4) Send us notification immediately and in writing of any change of address or phone number at home or work; (5) Set up an appointment to see an attorney if you have any questions regarding your case that cannot be answered by this guide or through telephone calls to our office; (6) Keep careful records of all the payments you make to secured creditors (such as your mortgage company or lending institution on your car); (7) Immediately respond to any correspondence from our office; (8) Attend any and all Court hearings you are requested to attend by our office; (9) Exercise complete honesty in all the information you supply to our office and the Bankruptcy Court regarding your case; (10) Believe in yourself! You have the ability to improve your financial situation by utilizing the Afresh start@ offered by a Chapter 7 Bankruptcy. Our office is sincerely interested in your well‑being and peace of mind. We hope this material has helped inform you of the requirements and benefits of your Chapter 7 Bankruptcy. We remain at your disposal as to any assistance that we can offer toward the successful completion of your Chapter 7 case. Sincerely, The Law Office of ——————————————————————————————————————————— Please note: This information is provided to our clients to assist them in understanding and successfully completing a standard Chapter 13 proceeding. It is not intended to cover the multitude of problems that can arise in complicated cases or business bankruptcies. Questions about such cases should always be discussed with your attorney. This material is informative in character and is not intended as advertising. Our office features “FREE CONSULTATION AT ANY TIME.” If you are concerned over a serious issue in your case, we recommend you call immediately and set up a free consultation that will be provided to you at a mutually convenient time. OR MOST COMMONLY ASKED QUESTIONS EFFECTS OF FILING BANKRUPTCY1. Q: CAN I HAVE MY TRUSTEE PAYMENT TAKEN OUT OF MY PAYCHECK? A: Yes. This is a voluntary procedure. One of our paralegals can assist you in filling out a wage order. Although it is your decision to make, we recommend a wage order in most cases to increase your chances of successfully concluding your bankruptcy. However, if you should have difficulty making your payments on time, you may be required to submit to a wage order. 2. Q: AT WHAT POINT DOES MY BANKRUPTCY PROTECTION ACTUALLY BEGIN? A: The "automatic stay," or protection from creditor action, occurs the instant that your petition is filed with the Bankruptcy Court. The petition is a two page document which lists your name, address, social security number and other basic information. As soon as that petition is stamped by the Court at the clerk's office with a bankruptcy number, you have filed bankruptcy and are under the protection of the Court. The vast majority of cases today are filed electronically (over the internet) through a secure website; therefore, your case may be received and assigned a case number by a computer generated form instead of a “stamp”. A case number is never issued (or assigned) to more than one case. You will be the only Debtor with that case number. This is why it is helpful to supply your creditors with your bankruptcy number. It is proof that you have actually filed. Supplying your creditors with notice of your bankruptcy can be done by referring your creditors to our office after paying the down payment set by the attorney. 3. Q: AFTER I FILE BANKRUPTCY, DOES THAT MEAN THAT THE TRUSTEE CAN TAKE CONTROL OF MY PROPERTY OR ACCOUNTS? A: No. One of the advantages of filing a Chapter 13 in this District is that you remain in control and possession of all your property — even non-exempt property. You will continue to use your exempt property and control your bank accounts as usual. All payments made to the Trustee on your part are voluntary. In this district, the Trustee will generally not seize or garnish your paycheck or bank accounts for your monthly Chapter 13 Trustee payment. The Trustee, however, may offer a voluntary wage order (payroll deduction) or ACH draft from your account. There are a few situations where the wage order is mandatory, but usually this is the result of an inability to keep up with your payments to the Trustee in a timely fashion. Your IRS tax refunds may be retained by the Trustee. 4. Q: HOW LONG DOES MY CHAPTER 13 BANKRUPTCY STAY ON MY CREDIT RATING? A: The filing of a Chapter 13 case will normally stay on your credit report for about seven (7) years from the date you file your case; however, no single item can stay on your credit report for more than ten (10) years. 5. Q: WHAT CAN I DO TO REDUCE THE EFFECT OF MY CHAPTER 13 ON CREDIT RATING? A: The best thing that you can do to have Chapter 13 help your credit is to have our office draft a plan to pay 75% to 100% on the dollar to your unsecured creditors. Even though you are paying ZERO INTEREST, believe it or not, the Chapter 13 Trustee has a very credible, efficient credit rehabilitation program for both the Dallas and Fort Worth Divisions of the Northern District of Texas. However, to qualify, you generally must repay 75 cents on the dollar. As little as 75 cents on the dollar has helped certain debtors. This program is only available to debtors who have successfully completed ALL plan payments. Next, even if you can't pay that much back, at least keep current on all the payments required by your Chapter 13 bankruptcy plan. Remember, it is better in some creditors’ eyes that you repaid even 30 cents on the dollar, rather than just erased your debts in a Chapter 7. Also, credit bureaus may be willing to let you add "explanatory comments" to your credit report. If you successfully conclude your case, and repay 75 cents on the dollar, the Chapter 13 Trustee's office will assist you in pulling all three credit bureaus, and in correcting your credit information. They will also assist you in submitting credit applications to many participating creditors. The last page of this manual has a list of participating creditors. For more information, contact the Credit Rehabilitation Department for the Dallas and Fort Worth Chapter 13 Trustees at (817) 498-1937, Ext. 148 (Joan), Ext. 146 (Lynda), or Ext. 123 (Joyce). 6. Q: IF I HAD FILED A CHAPTER 7 BANKRUPTCY INSTEAD OF CHAPTER 13, HOW LONG WOULD THAT HAVE REMAINED ON MY CREDIT? A: For ten years from the date of filing. 7. Q: WILL THE FILING OF MY BANKRUPTCY BE PUBLISHED IN THE PAPER? A: The filing of a Consumer Bankruptcy is a matter of public record and as such your case is subject to inspection by anyone who has knowledge of your filing. Everyone listed on your mailing matrix (creditors) in your bankruptcy paperwork will receive notice of your filing. Therefore, only creditors are normally aware of your bankruptcy unless you tell others. However, there is not any law that limits the right of a newspaper to publish a list of bankruptcies filed. Your creditors are the only ones aware of your bankruptcy in most instances. 8. Q: WILL MY EMPLOYER FIND OUT ABOUT MY BANKRUPTCY? A: No, not unless one of the following six things occurs: (1) You decided to tell your employer; (2) You enter into a voluntary wage order which has your Chapter 13 plan payments deducted from your paycheck; (3) Your employer is also a creditor and is, therefore, listed on your bankruptcy mailing matrix; (4) Your employer is informed by a third party (i.e. creditors) that you have filed; (5) Your employer subscribes to a business or legal publication that publishes the name and case numbers of consumer debtors; or (6) Your employer runs "routine" credit checks for security purposes. In this last event, a bankruptcy is generally considered to be a responsible resolution of your debts. In fact, certain Department of Defense security clearance revocation actions may be stopped when a person files and notifies the department. Remember, you must disclose a bankruptcy filing to an employer or security clearance authority when asked about it on a questionnaire. Disclosure is the only alternative. Furthermore, if it is necessary for our office to call you at work in relation to your case, we will only identify ourselves as representing your attorney's office. We will not disclose the nature of the call or give any information informing the person you are in bankruptcy. We take this precaution not because we feel there is anything incorrect with a person filing bankruptcy, but because we wish to protect your privacy whenever possible. 9. Q: CAN I BUY ANOTHER HOUSE OR CAR AFTER FILING CHAPTER 13? A: In terms of buying a house, the June 23, 1992 U.S. Dept. of Housing and Urban Development Guidelines, Handbook 4155.1 Rev. 4 states: "A borrower paying off debts under Chapter 13 of the Bankruptcy Net may also qualify if; (1) One year of the pay-out period has elapsed and performance has been satisfactory; and (2) The borrower receives Court approval to enter into the mortgage transaction.” Also, a debtor will normally qualify for any non-qualifying assumptions on pre-1985 housing. Regarding car loans, Chrysler Credit Corp. has a "Second Start" program where a buyer may qualify if $2500.00 is paid down on a car valued at $11000.00 or less. DO NOT walk in a dealership telling the salesperson that you are in bankruptcy on the front end. That person may attempt to charge you a premium for the car, plus higher interest. DO NOT discuss your credit situation until you have a written quote on the price from the dealer for the specific auto or truck you desire to purchase. Folks that have filed bankruptcy will normally pay a higher interest rate to borrow on cars, but should not position themselves to pay twice for the vehicle by untimely front end disclosure of an adverse credit standing. Please avoid “Tote-A-Note” lots. Several reputable dealers, including Classic Chevrolet and Grubbs Nissan are generally known to sell cars to folks that have filed Bankruptcy. Please always reference an NADA Guide when buying any car. You will generally pay a higher rate of interest but should never pay over the “Average Retail” value when buying a car. The NADA Guide can be purchased at most major bookstores. There are also several on-line guides Kelly Blue Book and NADA. GMAC has in the past financed vehicles where there was previous satisfactory credit with GMAC. PLEASE NOTE THAT A DEBTOR IS NOT ALLOWED TO BUY A HOUSE OR CAR WITHOUT SEEKING COURT AUTHORIZATION. Where a debtor is attempting to buy a house or car, a motion must be filed and a Court Order must be obtained. This can take thirty (30) days to complete if there is opposition, so please give us as much notice as possible. 10. Q: CAN I REFINANCE MY HOME DURING MY CHAPTER 13 CASE? A: Yes. In most cases, you will have to be able to demonstrate a current payment history in regards to both your existing home mortgage and the Chapter 13 plan. Individual lenders may have other requirements, but the Chapter 13 filing is rarely a reason for denial of your application to refinance. Where a debtor is attempting to refinance, a motion must be filed and a Court Order must be obtained. This can take thirty (30) days to complete if there is opposition, so please give us as much notice as possible. Failure to do so will likely result in delaying your closing, and may affect any interest rates you have been promised. 11. Q: CAN MY EMPLOYER LEGALLY DISCRIMINATE AGAINST ME BECAUSE I FILED BANKRUPTCY? A: Absolutely not. The Bankruptcy Code expressly prohibits an employer from discriminating against an employee on the basis that the employee filed bankruptcy unless the bankruptcy disqualifies the employee from being able to fulfill the job duties of that position. 12. Q: I’M ENTITLED TO GOVERNMENTAL BENEFITS. IS THERE ANY WAY MY FILING BANKRUPTCY CAN JEOPARDIZE MY ABILITY TO RECEIVE THOSE BENEFITS? A: No. The Bankruptcy Code expressly prohibits any governmental unit or agency from denying benefits to anyone merely because they have filed bankruptcy. This includes all veterans’ benefits such as disability, health care, retirement, and all benefits to which you are entitled as an employee of the city or state. However, you should expressly list those benefits in your exemption elections and exempt them as your exempt property. 13. Q: AM I ELIGIBLE FOR STUDENT LOANS AFTER FILING FOR BANKRUPTCY? A: Yes. 11 U.S.C. § 525(c), as of October 1994, allows a debtor to not be discriminated against as to Student Loan Applications solely because of the filing of a Bankruptcy. 14. Q: I AM CONCERNED THAT A CREDITOR MAY COME AND UNEXPECTEDLY TAKE MY HOUSE, CAR OR OTHER PROPERTY. CAN THIS HAPPEN? A: Yes, but very rarely. A creditor cannot legally take back its collateral without a formal Court order and permission. Gaining the Court's permission to repossess or foreclose on your property through a Motion for Relief from Stay usually takes at least a month to occur since a formal hearing is also required in addition to the filing of a Motion. We will receive notice of the Motion shortly after it is filed and will immediately file the paperwork which is necessary to stop the creditor from getting a default or automatic judgment against you. We will be in contact with you to attempt to settle the matter through negotiation with the creditor (which is one of the reasons it's so important for you to supply us with a new phone number or address). If we cannot negotiate a settlement, we will represent you in a hearing before the Court and let the Judge make a decision on the matter. Note: If a creditor who is duly listed in your bankruptcy schedules does attempt to repossess or foreclose on your property without a Court Order, such action is not legal and there are measures we can take on your behalf to get the property back. Most creditors are aware of the Bankruptcy rules, and it is, therefore, very rare for a creditor to attempt such action without going through the lengthy steps to gain the Court's permission as outlined above. 15. Q: CAN I KEEP ANY OF MY CREDIT CARDS AFTER THE FILING OF BANKRUPTCY? A: Only if you had a zero balance on the card at the time you filed bankruptcy and you also obtained the permission of the Trustee beforehand for each purchase of consumer related goods you wish to charge on the card. Please show “zero balance credit lines” as “assets” on the schedule of personal property and exemption elections. All payments to credit cards made within 90 days of filing should be disclosed as well. This typically includes gas cards. 16. Q: I HAVE A CO-DEBTOR ON ONE OF MY DEBTS. CAN MY CO-DEBTOR ALSO BE PROTECTED BY MY FILING BANKRUPTCY? A: It depends. If you and the co-debtor (i.e., a husband or a wife) both signed on the note to your home, the answer is yes; your filing alone will stop the pending foreclosure on the home. For other types of debts (i.e., a car loan) the answer depends on the circumstances involved (for instance, whether it was a business or consumer debt, and who received the benefit of the loan). This is a complex legal question which should be discussed with your attorney. Where co-signed notes are not paid off in your Bankruptcy, the Co-Debtor may be sued for any unpaid balance. You may insist on paying co-signed debts. This is permissible under the Bankruptcy Code. B. SOME DEFINITIONS OF TERMS REGARDING YOUR BANKRUPTCY17. Q: WHAT IS A "MOTION FOR RELIEF FROM THE STAY" OR A "SECTION 362 PROCEEDING"? A: They are both the same thing. A Motion for Relief from the Stay is essentially a request by a secured creditor for the Bankruptcy Judge's permission to repossess or foreclose on property. If you receive a copy of a Motion for Relief from the Stay on property you don't wish to keep, simply call the office and let us know you want to give it back. IF YOU RECEIVE A MOTION FOR RELIEF FROM THE STAY ON PROPERTY YOU WANT TO KEEP, MAKE AN APPOINTMENT TO SEE YOUR ATTORNEY AT ONCE. There are very short time limits on answering such a motion, and once the deadlines are past, there is nothing we can do to help you. There are other, more exotic, Motions for Relief from the Stay which usually involve a lawsuit that had already been filed in State Court when your bankruptcy was filed. These should be discussed with your attorney individually. 18. Q: WHAT IS A LIEN AVOIDANCE? A: A lien avoidance refers to a way that some Chapter 13 debtors can erase or void a lien on a secured debt. It applies only to the type of secured debt which occurs when someone puts up Pre-owned household goods to secure a new loan from a finance company. It does not apply in a situation where a person buys new household goods or appliances from a creditor, unless the person later went back to the creditor to borrow more money, and pledged the household goods and appliances previously bought as collateral on the second loan. If you are asked by our office to sign a Motion To Avoid a Lien, you should schedule an appointment as soon as possible to do so. We will then file this Motion with the Court and attempt to void the lien which is the subject of the Motion. 19. Q: WHAT IS THE "AUTOMATIC STAY"? A: When you file your bankruptcy, an automatic "stay" (or protection against creditor harassment and repossession) is immediately in effect. If a creditor files a Motion for Relief from that "Stay", that creditor is asking for the permission of the Bankruptcy Court to foreclose or repossess your property. A creditor is not allowed to repossess or foreclose on your property after you file bankruptcy without an express written court order. A Motion for Relief from the Stay is the judicial procedure by which a creditor seeks permission of the Bankruptcy Court to take back your property. 20. Q: WHO IS THE CHAPTER 13 TRUSTEE, AND WHAT DOES HE/SHE DO? A: If you file in Fort Worth, then the Chapter 13 Trustee is Tim Truman. If you file your bankruptcy case in Dallas, the Chapter 13 Trustee is Thomas Powers. The Chapter 13 Trustee is appointed by the U. S. Trustee. Their job is to disperse the trustee payments you send every month to the various creditors that are being paid through your bankruptcy. It is also the Trustee's job to review and monitor your payments and to inform the Court whether or not your Chapter 13 plan should be confirmed or approved by the Court. 21. Q: WHAT IS A CREDITORS’ MEETING? A: A creditors’ meeting is a requirement under the Bankruptcy Code. It is held at the same time as the debtor's school. It is an opportunity for your creditors to meet with you and your attorney and ask reasonable, relevant questions relating to your bankruptcy. You will be assisted by an attorney from our office in answering any questions posed to you by a creditor. It is generally helpful if you are making efforts to pay the Trustee on time, and have proof of your Trustee payments with you. Please bring copies of your pay stubs and last three years of tax returns with you. 22. Q: WHAT IS CONFIRMATION? A: Confirmation refers to the formal approval by the Court of your Chapter 13 plan. This occurs after your attorney sends out a Motion for Confirmation to all your creditors following your Debtor's School/Creditor Meeting. Your plan is confirmed once the Bankruptcy Judge signs the Order confirming your Plan at the confirmation hearing. 23. Q: WHAT DO THE TERMS “PRE-PETITION DEFAULTS” AND “POST-PETITION DEFAULTS MEAN” A: Pre-petition defaults are payments that you did not make to a creditor before the bankruptcy was filed. Post-petition defaults are payments not made to a creditor after the bankruptcy was filed. 24. Q: MUST I LIST ALL MY DEBTS IN MY BANKRUPTCY PAPERS? A: YES, YOU MUST! One of the most basic principles of bankruptcy law is that all similar creditors must receive similar treatment through the bankruptcy. Since a debt which is not listed is usually not discharged, that debt would survive the bankruptcy (that creditor could sue you, for example). The omission of a debt is preferring unlisted creditors over the listed ones, and that is forbidden by the Bankruptcy Code. When you sign your schedules you are declaring under penalties of perjury that you have listed all creditors of which you are aware. 25. Q: MUST I LIST ALL MY ASSETS? A: Yes. One of the most serious mistakes anyone can make in a bankruptcy case is to try to hide property from the Trustee or the Court. If the Court believes that any failure to list an asset was deliberate, the Court may certify the facts to the United States Attorney for possible criminal prosecution. Once again, when you sign your bankruptcy papers you are declaring under penalties of perjury that everything is correct to the best of your knowledge. Intentionally failing to list property is not only perjury but a bankruptcy crime as well. If you mistakenly omit any asset from your papers, let us know immediately. We are allowed to amend your schedules for some time after they are filed. 26. Q: WHY IS IT SO IMPORTANT THAT I SUPPLY MY ATTORNEY WITH A LIST OF ALL MY CREDITORS AND THEIR CORRECT MAILING ADDRESSES? A: First, the Bankruptcy Court requires it. You must inform the Court of all your debts and obligations. Willful failure to do so is a federal crime. Second, if you don't give the Court the right address for a creditor then that creditor will not be notified of the bankruptcy. A creditor who is not notified of your bankruptcy is not legally affected by it, and that debt will survive your bankruptcy and that creditor could file suit to collect such a debt. 27. Q: WHY ARE CREDITOR'S ADDRESSES SO IMPORTANT? A: The debt associated with a creditor who doesn't get notice of the filing of a bankruptcy is not discharged. This means that such a creditor would still have all its original rights to try to collect its debt. For example, they could still call, write, or sue you. We suggest that if you have more than one address for a creditor that you give us all the addresses you have. In this way we can be more assured that the notice of your bankruptcy filing will reach the creditor. If a notice comes back to us, we will ask you to search your records for a current and correct address. This is very important and is well worth the time and trouble it may take to obtain a current address. 28. Q: WHY IS IT SO IMPORTANT THAT I KEEP MY APPOINTMENT TO RETURN TO THE OFFICE WITHIN 15 DAYS OF THE DATE I FILED MY BANKRUPTCY PETITION? A:T he Bankruptcy Court requires that a complete set of financial documents called schedules be filed in every Chapter 13 case within 15 days of the original petition. If this is not done, the Court could dismiss your bankruptcy and bar you from filing another bankruptcy for a six-month period. We need for you to supply the necessary information, review, and sign your Chapter 13 schedules before we can submit them to the Court. 29. Q: MY EMPLOYMENT CONTRACT WITH Jim Morrison & Associates, PC, P. C. REQUIRES THAT I IMMEDIATELY INFORM THEM IN WRITING OF A CHANGE OF ADDRESS OR PHONE NUMBER FOR EITHER WORK OR HOME. WHY IS THIS NECESSARY? A: If there is any sort of problem or attack against your bankruptcy we must be able to contact you to effectively represent your interests. For instance, if we receive a Motion by a creditor to take back your property or to oppose your confirmation, we must be able to notify you of what must be done to protect your property. 30. Q: SHOULD I LIST CREDITORS IN MY BANKRUPTCY TO WHOM I FEEL THE DEBT IS UNCERTAIN OR DISPUTED? A: Yes. You must list even uncertain, contingent, or disputed debts in your bankruptcy. Failure to do so means we cannot give you the benefits and protection of your Chapter 13 regarding those debts. Those debts may survive the bankruptcy and those creditors could sue you later. 31. Q: I HAVE FILED BANKRUPTCY, BUT MY SPOUSE DID NOT. MUST I STILL LIST MY SPOUSE'S INCOME IN MY BANKRUPTCY PAPERWORK? A: Yes. The Bankruptcy Court requires that the income of both the filing and the non-filing spouse be included in developing a Chapter 13 plan. The only exception would be if you and your spouse were separated, living under separate roofs, and not planning to contribute any income to each other's expenses in the future (e.g. anticipating filing for divorce or in divorce proceedings). 32. Q: WHAT SHOULD I DO IF I EXPERIENCE A SERIOUS INCREASE OR DECREASE IN MY EXPENSES OR INCOME SINCE I FILED BANKRUPTCY? A: Contact our office immediately, and set up an appointment. Amended paperwork must be filed in your bankruptcy to reflect changes of this type within ten days from the time that the changes occur. D. MOTION FOR RELIEF FROM STAY33. Q: WHAT IS A MOTION FOR RELIEF FROM THE STAY OR A SECTION 362 PROCEEDING? A: They are both the same thing. A Motion for Relief from the Stay is essentially a request by a secured creditor for the Bankruptcy Judge's permission to repossess or foreclose on your property. If you receive a copy of a Motion for Relief from the Stay on property you do not want to keep, simply contact the office and let us know that you do want to give it back. — IF YOU RECEIVE A MOTION FOR RELIEF FROM THE STAY ON PROPERTY YOU WANT TO KEEP, MAKE AN APPOINTMENT TO SEE YOUR ATTORNEY AT ONCE. There are very short time limits on answering such a motion, and once the deadlines are past, there is nothing we can do to help you. There are other, more exotic, Motions for Relief from the Stay which usually involve a lawsuit that had already been filed in State Court when your bankruptcy was filed. These should be discussed with your attorney individually. 34. Q: WHEN CAN A CREDITOR FILE A MOTION FOR RELIEF FROM STAY? A: At any time that your bankruptcy is still active and on file with the Court. In a Chapter 13 Bankruptcy, this is usually from three to five years. 35. Q: WHAT CAN I DO TO AVOID A MOTION FOR RELIEF FROM STAY? A: First of all, make sure you make all payments, at the appropriate time, as you have been instructed by our office (Please refer to your “Payments We Must Make Sheet.”). Secondly, make sure that your house, cars, and any other major pieces of equipment you own are adequately insured. This means that each piece of property has full insurance coverage (including comprehensive) and lists the lienholder (or the creditor) as a "loss payee" on your insurance policy. Provide a copy of your full insurance coverage (including comprehensive) directly to your creditor just as soon as possible after your case is filed. Following these steps will make it very unlikely that you will have a Motion for Relief from Stay filed against you. 36. Q: WHAT SHOULD I DO IF I RECEIVE A MOTION FOR RELIEF FROM STAY IN THE MAIL AND I WANT TO TRY AND KEEP THE PROPERTY THE CREDITOR IS ATTEMPTING TO GET BACK? A Contact our offices immediately to set up an appointment. You will need to come in right away to sign an affidavit (sworn statement) regarding the reasons why you should be able to keep the property in question. This affidavit must be done to comply with a rule of the Bankruptcy Court. If you do not furnish an affidavit to the Court through our office within a certain amount of time, the Court could let the creditor have the property back no matter how “in the right” you may be. When you come for your appointment, bring proof of insurance on the property in question, proof of your Trustee payments, and proof of direct payments made to the objecting creditor since the filing of the bankruptcy (but only if direct payments were required by the terms of your plan). “Proof of insurance” means the declarations page of your insurance policy — not just the liability card. 37. Q: I RECEIVED A MOTION FOR RELIEF FROM STAY ON A PIECE OF PROPERTY THAT I HAVE DECIDED TO RETURN TO THE CREDITOR. WHAT SHOULD I DO? A: Notify our offices immediately of your desire to surrender the property. Then send a note informing us that you authorize Jim Morrison & Associates, PC to surrender the property on your behalf. Sign the note, date it, and mail it to us. If you prefer, or if you are requested to do so, you may sign a “surrender form” at our office, but you must first contact one of our paralegals to make arrangements to do this. This will be a big help to us. It will also keep us from developing extra hours that you could be required to pay for in the event we file a “Fee Application.” If you have lost all the important property that you originally filed a Chapter 13 in order to keep, due to non-payment, don't despair. Set up an appointment for a free consultation. We are generally able to convert your case to a Chapter 7 and discharge the rest of your debt without further Trustee payments. 38. Q: HOW DELINQUENT IN MY MORTGAGE PAYMENTS DO I HAVE TO BE BEFORE THE MORTGAGE COMPANY WILL FILE A MOTION FOR RELIEF FROM STAY? A: There is not a definite answer. Each creditor is different in its time response to post-petition default. Some creditors will file on the basis that the payments are received late each month. Others will not file until several months of post-petition arrears have accumulated. There is not a way to predict for sure if or when you will have a Motion for Relief from Stay filed in your case. The safest thing to do, of course, is to make all mortgage payments on time. 39. Q I'M BEHIND ON MY HOUSE PAYMENT. WHAT SHOULD I DO? A: Send in partial payment if that's all you can afford. Send in the balance as soon as possible. If you have a contact at the mortgage company (such as a loan officer) with whom you have enjoyed a good relationship in the past, it might be helpful to call and inform that person when you'll be sending your payment. Do not become overly distressed or lose sleep if you are delinquent on just one mortgage payment since the filing of your bankruptcy. The chances of getting a Motion for Relief from Stay are not as great if you are late on just one mortgage payment as if you have missed two or more since filing the bankruptcy. But try to make every mortgage payment on time every month to eliminate a Motion to take back your house. The more delinquent you are in making your mortgage payments; the more likely it is that the mortgage company will take action to take back the house. E. HOUSE PAYMENTS TO YOUR MORTGAGE COMPANY AFTER FILING40. Q: IS THERE ANYTHING I CAN DO TO INCREASE THE PROBABILITY OF RECEIVING PROPER CREDIT FOR THE PAYMENTS I MAKE TO MY MORTGAGE COMPANY OR TRUSTEE? A: Yes. On every check you send to the mortgage company, you should include your loan number and bankruptcy number. On your trustee payments, make sure to list your bankruptcy number. It is always better to send your mortgage payments by check since they are easier to replace if lost and provide better proof of payment than a carbon copy of a certified check or money order. Try to avoid the use of Money Orders; they are difficult and time consuming to trace in the event you need to prove that you made a particular payment. 41. Q: MY MORTGAGE COMPANY IS RETURNING THE PAYMENTS I SENT AFTER MY BANKRUPTCY WAS FILED. WHAT SHOULD I DO? A: FIRST OF ALL, DON'T SPEND THE MONEY! It is an error on the part of the Mortgage Company to return your mortgage payments after the filing of your bankruptcy. However, you will still owe them the money and this won't stop them from demanding all the money back again once they discover their mistake. If this occurs and you've already spent the returned funds, the Mortgage Company could file a Motion for Relief from Stay to take back your property on the grounds that you failed to make all your payments since the filing of your case. You should deposit the returned payments into a separate bank account (where you're not tempted to spend them) and contact our office about the problem. We will notify the attorney for the mortgage company. This will usually solve the problem. F. CONTACT WITH YOUR ATTORNEY'S OFFICE42. Q: WHAT SHOULD I DO IF I HAVE A QUESTION REGARDING MY BANKRUPTCY? A: To repeat, review this Survival Guide! The answer to your question is probably somewhere within these materials. If not, call our office and speak to one of our paralegals. In most instances they will be able to answer your question. If not, you may direct your question to one of our attorneys. 43. Q: I HAVE AN IMPORTANT QUESTION REGARDING MY CASE THAT THE PARALEGALS CAN'T ANSWER, BUT I CAN'T REACH AN ATTORNEY BY PHONE. WHAT SHOULD I DO? A: Each attorney at our firm makes every attempt to return all client calls. However, the demands on their time are so high that it may not always be possible for them to do so. If this occurs, call our office and set up an appointment to see an attorney. A FREE consultation will be scheduled so that your problem may be resolved through a face to face meeting with an attorney. 44. Q: I HAVEN'T HEARD ANYTHING FROM MY ATTORNEY'S OFFICE SINCE I FILED MY CASE. DOES THAT MEAN THERE'S SOMETHING WRONG? A: No! Don’t worry if you haven’t heard from us for a while. Generally the only time you would be contacted by our office is if there is some type of problem with your case. If everything is going smoothly, there usually is no need to contact you. If there is a problem, such as a Motion for Relief from Stay (a Motion by a creditor to take back your property) or an Objection to your Confirmation (Court approval of your Bankruptcy), we will contact you about what needs to be done to protect your property and your bankruptcy. G. CREDITOR HARASSMENT45. Q: WHAT SHOULD I DO IF I CONTINUE TO GET BILLS FROM MY CREDITORS? A: If the bills are computerized statements or letters, you should not be disturbed if you continue to receive them for 6 to 8 weeks. Personalized letters or threats to sue should be saved and brought to the office so that we can contact the creditor responsible. If you are telephoned, give the caller your bankruptcy number and our name and telephone number and tell the person they can verify the bankruptcy filing with us. You should also make note of the name of person calling, the person's telephone number and the date of the call should we need this information later in an action to enforce your bankruptcy protection. 46. Q: WHAT DO I DO WHEN A CREDITOR CALLS AT HOME OR WORK? A: First of all, remember there is no need to get upset! Handle the call in a business like fashion by telling the creditor the following facts: (1) You have filed Chapter 13 bankruptcy. (2) The date of the filing. (3) Your Chapter 13 case number. (4) That you are represented by the Law Firm of Jim Morrison & Associates, PC in your bankruptcy and that any further questions regarding that creditor's debt should be directed to our office (give them our phone number and address). (5) That they are prohibited from attempting to contact you directly under order of the Bankruptcy Court and any further attempts by them to contact you except through your attorneys will be immediately reported to Jim Morrison & Associates, PC and appropriate action will then be taken. 47. Q: `WHAT SHOULD I DO IF I GET SUED WHILE IN BANKRUPTCY? A: The first thing to do is to immediately go to the Clerk's Office at the Bankruptcy Court (call our office for the location) and get a certified copy of your bankruptcy petition. Take this copy to the Court where you are being sued and make sure the Court clerk puts it in your file. This should serve to put the Court on immediate notice of your filing and of your bankruptcy protection. Then, be sure to call our office regarding the problem. We will discuss with you the possibility of filing additional papers (a “Suggestion of Bankruptcy”) with the Court in which your case is pending to ensure that your rights are adequately safeguarded. Once again, remember you may schedule a free consultation to discuss filing a Suggestion of Bankruptcy with the Court to properly notify the Court and opposing Counsel of the Bankruptcy. Otherwise, post-discharge (after your bankruptcy is discharged, after all payments have been made that are due in your plan to be paid through the Trustee) you file a Motion to Dismiss or Answer asserting your affirmative defense of discharge in bankruptcy or your creditor will obtain a judgment that may be valid and collectible. This is IMPORTANT! If you are sued, file your responsive pleading asserting the affirmative defense of discharge in a timely fashion. H. SURRENDER OR SALE OF PROPERTY DURING BANKRUPTCY48. Q: CAN I SELL MY HOUSE WHILE I'M IN BANKRUPTCY? A: Yes, as long as you have listed and exempted the property in your schedules and are up to date on your Trustee payments and the sale price on your house is sufficient to pay off all the liens against it. 49. Q: WHAT MUST I DO BEFORE MY HOUSE IS SOLD? A: It depends. If you want to close on your property before your bankruptcy is discharged by the Court, you may need to contact our office to prepare a formal Motion and Order to get the Court's permission to sell the property. This procedure is very complex, time-consuming, and expensive. You should contact our office as soon as possible to discuss this matter with an attorney. The failure to do may cause to have to delay your closing. 50. Q: I HAVE DECIDED TO SURRENDER OR GIVE BACK MY VEHICLE AND HAVE NOTIFIED MY ATTORNEYS. WHAT SHOULD I DO? A: In this situation, it is better to voluntarily return the vehicle to the dealer where you bought it rather than risk the embarrassment of a repossession by the creditor. When you return the vehicle to the dealership, talk to a person in charge such as a manager or assistant manager. Tell that person why you are there, and return the keys to the car. In exchange, ask that person to provide a short note indicating that you returned the vehicle and the date it was returned. Please forward a copy of this note to our office for inclusion in your file. If that person is not willing to provide the note, don't worry. It's not strictly necessary. Just obtain the person's name and write our office a note telling us when and to whom you returned the vehicle. Please Note: For the purposes of any surrender of cars or houses, you should amend your schedules to properly disclose the surrender. This is necessary in order to effectively discharge the debt and reduce any amount that would be due and payable to them under the plan. The order lifting stay will not change the numbers to be paid or to whom the payments are made in a Chapter 13. You must meet with a paralegal or attorney to discuss this modification. You may want to convert to a 7 where all of your property you were trying to save was lost due to unforeseen circumstances and inability to pay the debt. Please meet with an attorney to discuss conversions. 51. Q: I HAVE INDICATED IN MY PLAN OR HAVE DECIDED TO SURRENDER CERTAIN PROPERTY. IS IT OK FOR ME TO PAWN THAT PROPERTY OR INCUR NEW DEBT AGAINST IT? A: Absolutely not! It would seem that this question shouldn't need to be addressed. However, we have heard of a few debtors in the past who have pledged or pawned goods they had indicated they would give back to the creditor. This is definitely not allowable and could lead to criminal action against you by the injured creditor. Please return the property involved as soon as possible unless the property is a house you are not ready to vacate. 52. Q: I HAVE DECIDED TO SURRENDER MY HOUSE AND HAVE NOTIFIED MY ATTORNEY. I HAVE MOVED (OR WILL MOVE SOON) FROM MY HOUSE. WHAT SHOULD I DO ABOUT THE MORTGAGE COMPANY? A: The best and most courteous thing to do in this event would be to send the mortgage company a note notifying them of the date you have moved (or plan to move) and to enclose a set of keys to the property along with your letter. Please also send a copy of the letter to our office for your file. 53. Q: I HAVE DECIDED TO SURRENDER MY HOUSE AND HAVE NOTIFIED MY ATTORNEY, BUT I DON'T HAVE ANOTHER PLACE TO MOVE TO AND I'M NOT READY TO MOVE RIGHT AWAY. WHAT SHOULD I DO? A: Do not move until the house is sold at foreclosure. The mortgage company cannot legally sell your house at foreclosure until they have received formal permission of the Bankruptcy Court to foreclose and have gone through the required notice proceedings to post your property for foreclosure. This process can take several months to occur. In the meantime, there is nothing wrong or illegal with staying in the property without making mortgage payments. You can use the money you save and apply it to your moving costs and/or the down payment on a new house or apartment. If you are buying your house on a contract for deed, you need to contact our office and discuss this matter with an attorney. 54. Q: HOW WILL I KNOW IF THE MORTGAGE COMPANY HAS POSTED MY PROPERTY FOR FORECLOSURE? A: You should receive notice 3 weeks or more before the foreclosure by receiving a certified letter from the mortgage company (or it's attorney) informing you that the property has been posted and the date on which it will be sold at foreclosure. Foreclosure sales in Texas only occur on the 1st Tuesday of each month. 55. Q: ONCE THE MORTGAGE COMPANY HAS MY PROPERTY POSTED, CAN THEY FORCE ME TO MOVE BEFORE THE FORECLOSURE DATE? A: No. The Mortgage Company cannot force you to move prior to foreclosure. Even after they foreclose, the mortgage company must use judicial means to evict you if you do not willingly move. 56. Q: AFTER MY HOUSE HAS BEEN SOLD AT FORECLOSURE, HOW LONG DO I HAVE TO MOVE? A: By far the best thing to do is to vacate the property shortly before the actual foreclosure day. If you are still living there after the foreclosure day, the mortgage company will start eviction proceedings against you. To evict you, they must give you written notice that you have 3 days to vacate the premises or they will file suit to evict you. If you haven't moved within those three days they have a right to file suit in the Justice Court (Justice of the Peace). After that point, there will be an eviction hearing set for approximately one week later. If you do not win at that hearing (and you probably will not), the Judge will send the Sheriff to forcibly evict you after a day or two of the hearing date if you have not already moved. Again, it is better to avoid all this by willingly vacating the property on or shortly before the foreclosure date. I. THE CHAPTER 13 TRUSTEE AND TRUSTEE PAYMENTS57. Q: WHO IS THE CHAPTER 13 TRUSTEE AND WHAT DOES HE DO? A: If you file your case in Tarrant County, the Chapter 13 Trustee is an attorney by the name of Tim Truman. If you file your case in Dallas County, the Chapter 13 Trustee is Tom Powers. The Chapter 13 Trustee is appointed by the U. S. Trustee. Part of their job is to disperse the trustee payments you send every month to the various creditors that are being paid through your bankruptcy. It is also the trustee's job to review and monitor your payments and to inform the Court whether or not your Chapter 13 plan should be confirmed or approved by the Court. 58.Q: WHERE ARE THE TRUSTEES' OFFICES LOCATED? IS THAT WHERE I SEND MY TRUSTEE PAYMENTS? A: If you have filed in Fort Worth, Tim Truman's office is located at 6851 N.E. Loop 820, Suite 300, Fort Worth, Texas 76180. If your case was filed in Dallas, Tom Powers’, office is located at 125 East John Carpenter Freeway, Suite 1100, Dallas, Texas 75201. However, your Trustee payments should be mailed to the following respective address: Chapter 13 Trustee Chapter 13 Trustee To ensure proper credit, BE SURE TO PUT YOUR BANKRUPTCY NUMBER ON YOUR CHECK OR MONEY ORDER. 59.Q: I NEED TO CHECK ON WHETHER I RECEIVED CREDIT FOR A PAYMENT TO THE TRUSTEE’S OFFICE. WHAT NUMBER SHOULD I CALL, AND WHO SHOULD I TALK TO? A: The number for calling the Trustee's office on routine matters in Fort Worth is (817) 498-1937; the Trustee's office in Dallas is (214) 855-9200. Do not expect to speak to the Trustee personally. They will not be available to answer routine phone calls. Instead, simply address your questions to the Chapter 13 representative who answers your call. 60.Q: WHAT DOES MY TRUSTEE FEE INCLUDE? A: Your trustee payment includes payment to all the creditors that are being paid through your bankruptcy and interest on all secured debts that are being paid through the plan (unsecured creditors do not receive interest). Your payment also includes an extra 11.11% flat fee to the Trustee. This extra 11.11% on all the monies collected in your bankruptcy is sort of a “use tax” imposed by Congress to pay for the costs of the Trustee handling your payments and performing other duties. 61.Q: CAN I PAY OFF MY BANKRUPTCY EARLY? A: Yes, the Trustee's office will always accept additional payments from Chapter 13 debtors, but early payments will not reduce the 10% fee to the Trustee or the interest payments on your secured debts in the bankruptcy. However, if you pay off the "base amount" (or the total amount due the Trustee over the term of the plan) before 36 months, then you may be asked to continue your Trustee payments until 36 months have expired for you to obtain a discharge. The Trustee may follow the "Base Amount Paid" line of decisions and allow you an early discharge. So long as you fully disclosed everything, as instructed, you may be allowed an early discharge. LEASE NOTE: If you have extra disposal income available to pay a dividend, and can pay 75 to 100% of your unsecured creditors, which includes credit cards, car deficiencies, medical bills, etc., the Trustee has a credit rehabilitation program. We strongly back the Trustee's efforts to help you re-establish credit. You may modify your plan at any time to pay all unsecured creditors in full. For more information call (817) 498-1937, Ext. 148 (Joan), Ext. 146 (Lynda), or Ext. 123 (Joyce). This program is available for debtors that filed their case in Dallas or Fort Worth. 62.Q: I AM LATE ON MY CHAPTER 13 PAYMENT THIS MONTH; BY WHAT DATE OF THE MONTH IS IT CONSIDERED LATE? WHAT SHOULD I DO? A: FIRST OF ALL, YOUR FIRST PAYMENT TO THE TRUSTEE MUST BE SENT BEFORE THE DATE THAT IT IS DUE!! IT CAN NOT BE LATE!! IF YOUR 1ST TRUSTEE PAYMENT IS NOT MADE ON TIME, THEN YOUR CASE WILL AUTOMATICALLY BE DISMISSED WITHIN 48 HOURS!!! After you have made your first trustee payment, other payments can be sent in by the early part of the third week of the month in which the payment was due. However, it is best to get your payment in on time. J. TRUSTEE’S MOTION OR NOTICE TO DISMISS63.Q: ON WHAT GROUNDS COULD THE TRUSTEE FILE A MOTION TO DISMISS MY CASE? A: If you miss a Trustee payment, the Trustee could send a notice of intent to Dismiss your case. If this occurs, you will receive a copy of the Notice from the Trustee notifying you of the amount of time you have to make your payment before the Trustee submits the dismissal order to the Court. 64.Q: WHAT SHOULD I DO IF I RECEIVE A TRUSTEE'S NOTICE OR MOTION TO DISMISS MY CASE? A: Contact our office immediately. If you want us to help you, we need to know what circumstances caused you to get behind. If your plan has been confirmed and you are behind on payments that were due after the confirmation, a post-confirmation modification may be available to cure the delinquent trustee payments. We normally require $350 down for modifications but may reduce the down payment, depending on the circumstances. 65.Q: IF I'M ABLE TO BECOME CURRENT ON MY DELINQUENT PAYMENTS TO THE TRUSTEE BY THE DATE CONTAINED IN THE NOTICE, WHAT OCCURS? A: Nothing. The Trustee will simply proceed with your plan. However, you should still contact the Trustee to make sure that you have been given proper credit for all your payments. K. DEBTOR’S SCHOOL66.Q: WHAT IS DEBTOR’S SCHOOL? A: Debtor's school is a class which you must attend in order to get your plan approved by the Court. At the class, you will be instructed by representatives of the trustee's office regarding basic principles of budgeting, financial planning, and practical points for successfully completing your Chapter 13 plan. Debtor’s School lasts one day (8:45 a.m. - 4:30 p.m.). The Debtor’s School is normally held on a Tuesday (in Fort Worth) or on a Thursday (in Dallas) 30 - 50 days after the case is filed. 67.Q: MUST BOTH MY SPOUSE AND I ATTEND DEBTOR’S SCHOOL? A: Only if you both filed Chapter 13. If only one spouse filed, only that spouse must attend the school. 68.Q: WHEN DOES THE DEBTOR'S SCHOOL TAKE PLACE? A: On the same date that your creditor's meeting is held — approximately six weeks after you file your case. 69.Q: HOW WILL I BE NOTIFIED OF THE DATE AND LOCATION OF THE DEBTOR’S SCHOOL? A: he Trustee will send you a letter shortly after your case is filed notifying you of the time, place, and date of your Debtor’s School and what you'll need to bring with you. 70.Q: CAN I RESET THE DATE OF MY DEBTOR’S SCHOOL? A: Generally not. Absent a crucial emergency such as a serious illness or death in the immediately family or the like, the Trustee's office will not agree to reset your Debtor's School. If you are facing a genuine emergency situation and cannot, under any circumstances, make the originally scheduled date, call our office immediately. Explain to the paralegal the nature of the problem and request a pass. We will do our best to obtain a pass for you, and let you know the result. 71.Q: WHAT WOULD HAPPEN IF I FAILED TO ATTEND DEBTOR'S SCHOOL WITHOUT RECEIVING A PASS FROM THE TRUSTEE? A: The Trustee would file a Motion to Dismiss your Chapter 13 case. The Trustee may also have your case dismissed automatically within 48 hours of your failure to appear without the necessity of filing a motion, providing any additional notice or hearing! L. THE CREDITOR’S MEETING 72.Q: WHAT IS A CREDITOR’S MEETING? A: A creditor's meeting is a requirement under the Bankruptcy Code. It is held at the same time as the Debtor's School. It is an opportunity for your creditors and the Trustee to meet with you and your attorney and ask reasonable, relevant questions relating to your bankruptcy. You will be assisted by an attorney and/or paralegal from our office in answering any questions posed to you by a creditor. 73.Q: WHEN DOES THE CREDITOR’S MEETING TAKE PLACE? A: The creditor's meeting takes place approximately six weeks after you file your case. 74.Q: HOW WILL I KNOW WHETHER OR NOT ANY OF MY CREDITORS WILL APPEAR AT MY CREDITOR’S MEETING? A: You won't. There is no way to predict if any creditors will appear. They are not required to notify anyone regarding their intent to attend. However, in the majority of our client's cases, creditors do not appear. If creditors do attend your meeting and wish to question you, there is nothing for you to worry about. You will be represented by an attorney throughout any questioning with a creditor. No one will be allowed to humiliate, harass, or embarrass you in any way. Typically, the questions are very routine in nature and they must be relevant to your case. Creditors will not be allowed to ask personal questions not directly related to your bankruptcy proceeding. M. THE CONFIRMATION HEARING75.Q: WHAT IS CONFIRMATION? A: Confirmation refers to the formal approval by the Court of your Chapter 13 plan. This occurs after your attorney sends out a Motion for Confirmation to all your creditors following your Debtor's School/Creditor's Meeting. Your plan is confirmed once the Bankruptcy Judge signs the Order confirming your Plan after the confirmation hearing. 76.Q: WHEN DOES THE CONFIRMATION HEARING TAKE PLACE? A: Approximately nine to ten months after your Chapter 13 case is filed. 77.Q: MY CONFIRMATION HEARING WAS PASSED TO A LATER DATE. IS THIS CAUSE FOR CONCERN? A: No. Confirmation hearings are often passed for a variety of reasons (e.g., the need to make a change in your plan, add new creditors, or provide additional notice as may be required by the Court). Passing your confirmation hearing does not normally jeopardize your bankruptcy protection in any way. 78.Q: MUST I ATTEND MY CONFIRMATION HEARING? A: No, not unless you hear from our office that a creditor or the Trustee has filed an objection to your Confirmation which we have been unable to resolve through negotiation. 79.Q: HOW WILL I BE NOTIFIED OF AN UNRESOLVED OBJECTION TO MY PLAN AND THE NEED TO ATTEND MY CONFIRMATION HEARING? A: Our office will write and/or call you to inform you of the objection and the time, place, and date of the Confirmation Hearing. In addition, the objecting creditor may send you a copy of the objection; however, the creditor is not required to do so. 80.Q : MY CONFIRMATION HAS BEEN SCHEDULED, BUT I HAVE NOT BEEN INFORMED BY MY ATTORNEY THAT AN OBJECTION HAS BEEN FILED. IS THERE CAUSE FOR CONCERN? A: No. We will not notify you unless an objection has been filed in your case which cannot be resolved with the creditor and, therefore, a hearing is required. In this type of situation, no news is good news, and your case will be confirmed by the Court as scheduled. However, you should check your records to be certain that we have your current address (if you have moved since your initial filing with us). A notification of an objection sent to the wrong address could have a detrimental effect on confirmation of your bankruptcy plan. 81.Q: IF I DO NOT HAVE ANY OBJECTIONS TO MY CONFIRMATION AND, THEREFORE, DON’T NEED TO ATTEND, WILL ANYONE APPEAR AT THE CONFIRMATION HEARING AND ENSURE THAT THE COURT SIGNS THE ORDER TO APPROVE MY PLAN? A: Yes. At least one attorney from our firm will attend each confirmation hearing to make sure that the client’s order of Confirmation is signed by the Judge — even when there is lack of opposition. N. OBJECTIONS TO CONFIRMATION82.Q: WHAT IS AN OBJECTION TO CONFIRMATION? A: An objection informs the Court that they are objecting to one or more provisions in your Chapter 13 plan. 83.Q: I HAVE RECEIVED NOTICE FROM Jim Morrison & Associates, PC THAT AN OBJECTION TO MY BANKRUPTCY HAS BEEN FILED. WILL I BE REPRESENTED AT THE HEARING ON THIS OBJECTION? A: Yes. At least one attorney from our firm appears at every Confirmation hearing to represent our clients. 84.Q: DOES IT AUTOMATICALLY MEAN THAT MY PLAN WON'T BE APPROVED IF I DO RECEIVE AN OBJECTION? A: No. Usually an Objection does not prevent a plan from being confirmed. The creditor in most cases is simply attempting to get better treatment under your plan and is not actually trying to prevent your plan's confirmation by the Court. Generally, the issue is not whether or not your plan will be confirmed, but how much you will have to propose to pay through your bankruptcy in order to get your plan confirmed. 85.Q: ON WHAT GROUNDS CAN A CREDITOR FILE AN OBJECTION? A: There are several grounds on which the Creditor may file an Objection to your Confirmation. For example, one of the most common complaints from a creditor is that your plan lists his debt as being a too small amount or that you are proposing to pay him out in your plan over too long a period of time. Or, a creditor may claim that, based on your income, you can actually pay a higher percentage to your unsecured creditors than proposed in your plan and, therefore, the Trustee payment should be increased. These are merely typical examples of creditor objections. The details of the particular objection to your case will be discussed with you by our office prior to the confirmation hearing (if any objections are filed). O.POST-CONFIRMATION MATTERS 86.Q: MY CHAPTER 13 PLAN HAS ALREADY BEEN CONFIRMED (OR APPROVED BY THE COURT); HOWEVER, I AM DELINQUENT IN MAKING MY TRUSTEE PAYMENTS. WHAT SHOULD I DO? A: If you cannot become current on all the payments to the Trustee in the very near future, you should schedule an appointment with our office immediately to discuss a possible plan modification. A plan modification could be prepared by us on your behalf in order to propose (to the court) a payment plan to become current on your Trustee payments. Such a plan modification, if timely filed, could prevent or resolve a Trustee's Dismissal of your case, thereby helping keep your case in good standing with the Court. P. ADMINISTRATIVE AND MISCELLANEOUS87.Q: MY SPOUSE CAN'T MAKE THE APPOINTMENT TO COME BACK TO THE OFFICE TO PROVIDE INFORMATION ON MY CHAPTER 13 SCHEDULES. IS IT ALL RIGHT FOR ME TO COME ALONE? A: Yes, as long as you are also filing bankruptcy, you can supply all the financial information regarding yourself and your spouse, and you have the authority or permission of your spouse to speak for him or her in relation to your bankruptcy. 88.Q: WHAT HAPPENS IF I FORGET A DEBT AND NEED TO ADD IT AFTER THE CASE IS FILED? A: It can be done, but the sooner such a debt is added, the easier it is to do. If the First Meeting of Creditors has been held, it is difficult to add a creditor. If the Confirmation Order has been entered, it requires a post-confirmation plan modification ($350.00 extra fee). If you discover the existence of an unlisted creditor, simply supply all the information on the debt to our office as soon as possible. Remember, a creditor who is not listed will not be discharged in the bankruptcy. 89.Q: CAN I MOVE WHILE THE CASE IS PENDING? A: Certainly. Just be sure to keep the office informed (in writing) of your current address and telephone number. This will enable us to inform you of the various setting dates and to keep everything in satisfactory condition and current. 90.Q: WHO NOTIFIES CREDITORS OF THE BANKRUPTCY? A: The Bankruptcy Court is responsible for sending notice of your bankruptcy filing to all the creditors who appear on your mailing matrix and other papers filed by our office in your bankruptcy. If you add creditors after the initial filing, the burden of notice falls on you. Our office will do this for you, but sometimes there is an additional fee for adding creditors to cover the costs of doing so. 91.Q : SHOULD I LIST GUARANTORS ON MY HOME LOANS OR LOANS SUCH AS VETERANS ADMINISTRATORS OR OTHER COSIGNERS? A: Yes. Often mortgage companies will collect against guarantors who can later sue on the debt if they are not notified of your bankruptcy filing. It is essential to list all of your guarantors and co-signers on any debts. If you have failed to do so, you must bring this fact, in writing, to the attention of our office. 92.Q: IS IT PERMISSIBLE TO INCUR MORE DEBT AFTER THE FILING OF MY BANKRUPTCY. A: Guidelines for use of business credit may change from time to time and should be discussed with your attorney. Generally speaking, paying business accounts on a normal 30-60 day billing cycle is permissible after the filing and during the bankruptcy. If you want to take out more consumer-related debt (i.e., non-business purchases for the home or family), you must first get permission from the Court. 93.Q: WHAT SHOULD I DO ABOUT PAYROLL DEDUCTIONS? A: We prefer to stop payroll deductions after you file a bankruptcy. You may be able to continue payroll deductions with a credit union related to an Employer loan. However, please be aware that if the note will be paid off in less than 36 months, you will need to pay the same amount to the trustee for the remainder of the 36 months in order for your plan to be confirmed. You can stop deductions. To stop deductions go directly to the person in your company responsible for payroll deductions and speak to them personally and ask them to stop the deductions. Usually they willingly do so. If the payroll deductions are not voluntarily stopped by the credit union, call our office. 94.Q: HOW MANY TIMES WILL I HAVE TO GO TO COURT? A: Many of our clients never go to Court. All clients are required to attend the one day Creditor’s Meeting/Debtor's school. Of course, there can be exceptions if a Motion for Relief from Stay, an Objection to Confirmation, or other matter is filed in your case. 95.Q: IF WE BOUGHT A HOUSE ON AN ASSUMPTION, AND WE LATER DEFAULT ON THE NOTE, DO WE REMAIN LIABLE ON THE NOTE TO THE PERSON FROM WHOM WE ASSUMED THE NOTE? A: Yes. You should list the mortgage company and the person from whom you assumed the note as creditors in your case. Failure to do so could result both in that debt surviving bankruptcy and in attempts by that creditor to collect from you in the future. 96.Q: CAN I FILE FOR DIVORCE AFTER I FILE CHAPTER 13? A: Yes, but first you'll need to notify us and specifically ask to have us prepare a Motion to obtain the formal approval of the Bankruptcy Court before you finalize your divorce. This Motion is sent out to all your creditors, and if no one objects, the Bankruptcy Court will sign a formal Order allowing the divorce proceeding to be pending at the same time as your bankruptcy. Your divorce attorney may also perform this service for you. Failure to obtain the permission of the Bankruptcy Court before you file your divorce could result in many future problems in both cases. You may also be best advised to sever your case from your ex-spouse and/or convert your case to a Chapter 7. We will quote a fee for this service upon request. 97.Q: MY HOUSEMATE AND I BOUGHT A HOUSE TOGETHER, AND WE BOTH WANT TO FILE CHAPTER 13. CAN WE FILE TOGETHER IN THE SAME CASE? A: No. The Bankruptcy Code expressly provides that only a husband and wife can be co-debtors in the same bankruptcy case. A man and woman living together who file a joint bankruptcy are holding themselves out to the public as being married, and therefore, may become married for all purposes under Texas law. 98.Q: I WANT TO RENT A NEW APARTMENT WHILE I’M IN BANKRUPTCY. IS THAT POSSIBLE? A: Yes, as long as your prospective landlord is willing to do so. If the rental application asks whether you have ever filed bankruptcy, you must, of course, answer “Yes.” Some landlords will not rent to you just because you're in bankruptcy; but others will. It is far better to search until you find a landlord who will rent to you regardless of your bankruptcy than to possibly commit a crime by falsely stating on your lease application that you have never filed. 99.Q: I WAS REJECTED ON MY APARTMENT LEASE APPLICATION BECAUSE I'M IN BANKRUPTCY. IS THERE ANYTHING I CAN TRY TO DO TO CHANGE THEIR MINDS? A: You cannot force the apartment management to lease to you if they do not want to. However, as a practical strategy, you might offer a substantially higher deposit than required in their lease or ask them how much of a deposit (or how much "down") it would take to change their minds. This strategy has worked for many of our clients in the past and might work for you too. It's worth a try! 100.Q: CAN I PAY MY MORTGAGE AND TRUSTEE PAYMENTS BY PERSONAL CHECK? A: Mortgage payments should be made by personal check; however, the Trustee requires that all your payments must be in certified funds (i.e., certified checks or money orders). We recommend that all mortgage payments be made by personal check because it is easier to prove payment if this ever becomes an issue in your case. 101.Q: POST CONFIRMATION MODIFICATIONS OF MODIFIED CHAPTER 13 PLANS. A: Your Chapter 13 plan is a flexible plan. If you want to surrender a car that you have been paying for through the trustee plan, then schedule an appointment with our office and we may be able to surrender the vehicle and lower the plan payment you make to the trustee. The same is true for a house where past due amounts are being paid through the Trustee’s office. If you do not complete a plan modification, then that secured creditor will still be paid by the Trustee's office. The surrender of a car or house without a modification through our office will result in a windfall to that secured creditor. Q. CREDIT REHABILITATION102. Q: Can I re-establish credit by doing something affirmative in my bankruptcy? A: Yes. The trustee has a credit rehabilitation service available for debtors that complete 75 to 100% plans. That means that if you complete paying plans off where all of your creditors are paid in full, then you can go to the Trustee’s office in Fort Worth, and they will pull all three credit bureaus and make corrections to show that you have paid all of your creditors in full. They will then assist you in making application(s) that fits your credit needs at that time. You can change your plan to pay 75 to 100% at any time before the discharge of the bankruptcy. In order to take advantage of the credit rehabilitation program, please instruct your paralegal at our firm to prepare a 75 to 100% plan. You have as long as five years from the date of filing to do this. Once you have completed paying the 75 to 100% plan, you may begin the process of credit rehabilitation by calling (817) 498-1937, Ext. 148 (Joan), Ext. 146 (Lynda), or Ext. 123 (Joyce). 103.Q: WE RECEIVED A NOTICE OF INTENT TO PAY CLAIMS AND AN UNSECURED CREDITOR FILED A SECURED CLAIM. WHAT DO WE DO? A: Immediately contact our office, in writing and notify us of the situation. Otherwise, please set up an appointment for a free consultation and direct our attention to the error. If your creditor has filed a secured claim for an unsecured debt, then that creditor is not discharged in a Chapter 13 and it will appear as “Pay Direct - not provided for in the plan.” Arguably, this creditor can sue you unless we object to their Proof of Claim. This is a dangerous situation and you must immediately notify us if you detect an unsecured creditor filing a secured claim. Review your documents sent to you by the Trustee and tell us if you notice a problem. We will handle the situation after written notice or after an appointment is made discussing the situation. As always, when in doubt, call our office to resolve any potential problems. R. POSTSCRIPT104.Q: WHAT ARE THE MOST IMPORTANT THINGS I CAN DO TO MAKE MY BANKRUPTCY A SUCCESS? A: Here is a list of the 10 most important things we feel you need to do (and to remember to do) in order to make your bankruptcy with our office a success: (1) Read this Survival Guide from start to finish; (2) Follow the instructions given to you by our office; (3) Follow the instructions given to you by the Trustee's office; (4) Send us notification immediately and in writing of any change of address or phone number (home and/or business); (5) Set up an appointment (no charge) to see an attorney if you have any questions regarding your case that cannot be answered by this Guide or through phone calls to our office; (6) Keep careful records of all the payments you make to your mortgage company and to the Trustee; (7) Immediately respond to any letters from our office notifying you of an attack on your case; (8) Attend any and all Court hearings you are requested to attend by our office or the Trustee's office; (9) Exercise complete honesty in all the information you supply our office and the Bankruptcy Court regarding your case; and (10) Believe in yourself! You have the ability to improve your financial situation through hard work and the advantages offered through a Chapter 13 reorganization. The Law Office of |
6815 Manhattan Blvd., Suite 310
Fort Worth, TX 76120
817.535.9900 (phone)
817.535.9944 (fax)
