Chapter 13
Bankruptcy Roadmap
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1. A free initial consultation with Attorney Nixson at his office is provided without any obligation. You will receive information on the bankruptcy process and how it will apply to your individual circumstances. Should you file bankruptcy? Will it benefit you? Should I file Chapter 7 or 13 bankruptcy? These are all questions that can be addressed during your private one-on-one conversation with your attorney Don Nixson—not a legal assistant. We will discuss a flat rate fee for your case and agree to payment terms which meet your budget. The initial consultation does not obligate you to go forward, you may find that bankruptcy is not right for you at this time.
2. Should you decide to go forward with Bankruptcy, you will be given a set of worksheets/forms (they are also available for download in the left-hand column). Following, are the types of information you will be gathering and then listing. These completed worksheets/forms must be returned to our Law Office before filing.
A. General information Contact information, other personal or business names used in the past six years, and prior bankruptcies. Provide the same information for your co-debtor spouse(if applicable).
B. What you own Include all your property with all the requested details ― real estate, burial plots, oil & gas leases, cash on hand, checking accounts, savings, security deposits, annuities, pension, profit sharing, stock, interests in partnerships, bonds, account receivables, business assets, support, tax refunds due, vehicles, boats, trailers, etc., that you own.
C. What you owe Now make a list of all your creditors and gather all the requested details. This is anyone you owe money to, anyone who has a claim against you, anyone who has a judgment against you, including collection agencies and attorneys representing creditors; and federal and state taxes owed. Details required:
• Creditor name
• Debt description
• Address (correspondance address)
• Account numbers
• Balance owed
D. Your family and your job Provide marital status and job status of you and your co-debtor (if applicable) and dependant information. Include employer names and addresses.
E. Your monthly income List all your income, including payroll deductions for both you and your co-debtor (if applicable). If you are self-employed, include that as well.
F. Your monthly expenses Break down all your monthly expenses. Use average figures for utilities, etc.
G. Statement of financial affairs (SOFA) Finally, this part of the worksheet summarizes where you are right now financially and what has happened in recent history.
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3. Additional items to submit:
A. Your last two tax returns
B. Check stubs from your employer or P&L from self-employment for the last six months
C. Three months bank statements, including the date of your first filing
D. Copy of Driver's Licsense
E. Copy of Social Security Card
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4. When we file your bankruptc, it is best that your bank account balances are low (preferably <$350) usually just before you get paid. Ask us when we are going to file you so you can put in on your calendar.
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5. You are required by current Bankruptcy Law to take two bankruptcy courses, the first from an approved agency and the second one the day of your 341 meeting. The first course can be taken online and over the phone and will take from 1.5 to 2.5 hours. If you need somewhere to take the course, you can take it at our office on our computer.
A. Bankruptcy Counseling course ONE - Before you can file bankruptcy, you must receive a credit counseling session. Take your course within one month of when you are going to file.You can use any provider you prefer. See the florescent yellow sheet in you package for some choices. As soon as you complete the course, e-mail or fax the certificate to don@nixsonlawfirm.com.
B. Bankruptcy Education course TWO - In Chapter 13, the course is given by the Trustee on the day of your 341 Meeting (Meeting of creditors), at the same location as your 341 Meeting.
• Get there at 7:45 and check in.
• Your financial course will last until 12:45
• Lunch break is from 12:45 until 1:45
• 1:45 341 Meeting check in time.
• 341 Meeting is from 2-5.
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6. After everything above has been completed (accept for the second counseling course), set up an appointment to sign the second filing papers. You MUST CAREFULLY review them for accuracy. More details follow regarding Chapter 13:
A. Your Income and Expense sheets must be accurate. They represent the budget you will be living on for the next 3-5 years during the duration of your Ch13 bankruptcy. If you discover that there is an error or a creditor has not been included, contact Mr. Nixson immediately to get this corrected.
B. Your Ch13 Plan will span 3-5 years depending on your individual situation. We will let you know how much you pay each month and who gets paid through the Plan and who you need to continue to pay directly. EVEN THOUGH YOU ARE IN THE PROCESS OF FILING CH13 - DO NOT MISS PRIOR REGULARLY SCHEDULED PAYMENTS THAT OCCUR BEFORE YOU START YOUR NEW PLAN PAYMENTS.
C. If you discover that there is property you own that has not been included, contact Mr. Nixson immediately to get this corrected.
D. Make sure you have submitted your last tax return and check stubs or payment record from your employer for the last six months.
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7. After your Filing you will receive a Notice of Bankruptcy by mail from the court. It will tell you the date and time of your "Meeting of Creditors” (called a 341 Meeting) in Fort Worth. YOU MUST ATTEND THIS MEETING. Put it on your calendar.
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8. If you receive a Notice of Deficiency by mail from the court, It will list the additional items we need from you. These are due within 3 days. Provide anything requested IMMEDIATELY.
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9. THE FIRST PAYMENT IN YOUR PLAN IS DUE 30 DAYS AFTER YOUR INITIAL FILING WHETHER YOU RECEIVE A PAYMENT NOTICE OR NOT. IF YOU MISS IT OR ARE LATE, YOUR CH13 BANKRUPTCY WILL BE DISMISSED. The payments are made by mail to a P.O. Box so you need to mail the payments at least 7 days before the due date.
The payment must be a money order or cashier’s check. PERSONAL CHECKS ARE NOT ACCEPTED!!!!!!!. We will register you to have your payments paid by your employer or drafted from your bank account. Until then, you must make your payments by mail- THIS CAN TAKE UP TO SIX MONTHS BEFORE IT STARTS.
Always put your name and Bankruptcy case number on the money order/cashier’s check.
The Balance owed to Mr. Nixson is paid through your Chapter 13 Plan.
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10. 341 MEETING. YOU MUST ATTEND THIS MEETING. No children. In this meeting you will informally meet with the Trustee's representitive, answer a few questions, and your creditors are allowed to attend (they rarely attend and if they do, they will just ask some questions). Your 341 Meeting is in the afternoon. You will attend a course that satisfies the 2nd course requirement (it will educate you on Chapter 13 Bankruptcy.) ARRIVE FOR YOUR COURSE AT 7:45 AND CHECK IN.
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Bring your Drivers License
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Bring your Social Security Card
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Bring Two most recent pay stubs or 2 months P&L
- Bring most recent tax return
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11. After the 341 meeting you should not receive any calls or notices from your creditors. If you do receive anything, we need to make sure they were included in the filings. Note that you may be contacted by a creditor to arrange a “voluntary return of property” for the property that you are surrendering.
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12. Permanently keep all your bankruptcy papers—together and in a safe place (including your discharge).
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13. Be sure you have a written budget for each month and follow it. As part of that budget, include savings. Avoid debt – it is a trap (read it again). Your goal should be to have NO DEBT― other than an affordable home loan.
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14. Depending on your individual situation, in 3-5 years you will complete your Chapter 13 Plan. When you receive a letter that says DISCHARGE OF DEBTOR from the court, your debt has been discharged and you are done with your bankruptcy.
- You will no longer owe the debts.
- DO NOT pay discharged debts or they may be revived after Discharge.
- Please note that NOT ALL debts can be discharged in bankruptcy― some taxes, child support, student loans, etc. Make sure you continue to pay those debts throughout and after the process.
15. After Discharge, be sure you have a written budget for each month and follow it. As part of that budget, include savings. Avoid debt – it is a trap (read it again). Your goal should be to have NO DEBT― other than an affordable home loan, and constuctive debt that builds your credit score (click here for more info.)
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