Frequently Asked Questions by  DEBTORS

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  1. I filed a 36-month plan.  More than 36 months have passed.  Why must I continue to make payments?

  2. What must I do to sell my home?

  3. My case is nearing completion.  How will I know when to resume making my mortgage payments directly?

  4. When my plan is completed, how will I get my car title from my lien holder?

  5. When is my payment due? 

  6. Can my payment be lowered or may I skip or postpone a payment?

  7. Why did my payment change?

  8. Is it possible to make credit purchases, i.e., accrue post petition debt, while I/we are in Chapter 13 bankruptcy?


I filed a 36-month plan.  More than 36 months have passed.  Why must I continue to make payments?

For many plans, the original "plan length" is only an estimate.  The actual length can be affected by plan modifications, the addition of debts, missed or partial plan payments, refunds to you, claims filed in excess of your estimates, interest, additional attorney fees, or other factors.  Ultimately, your plan is not completed until all the claims provided for in the plan have been paid in that manner.  The Trustee can provide an estimate of the remaining term, but you may have to consult your attorney to understand precisely why the plan hasn't yet ended.

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What must I do to sell my home?

Once you file a Chapter 13 case, all your property becomes "property of the bankruptcy estate."  Ordinarily, this means that you cannot sell any property without permission of the Bankruptcy Court as long as you are in Chapter 13.  You should never attempt to sell property without consulting with your attorney as to the advisability, legality and mechanics of such a sale.

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My case is nearing completion.  How will I know when to resume making my mortgage payments directly?

When your case is completed, we will notify you in writing, by mail, regarding the date you are to resume payments, as well as the address to which the payments should be sent.

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When my plan is completed, how will I get my car title from my lien holder?

Most lien holders can be depended upon to promptly release their liens and turn over the titles they have retained. However, if more than 30 days lapse after the granting of your discharge and you still have not received the title, you may ask that we send the lien holder a letter asking that you be sent the title.  If the title is still not forthcoming, you should contact your attorney for assistance.

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When is my payment due? 

The law requires that payments be commenced no later than 30 days after the date your Chapter 13 plan was filed.  Thereafter, they must be regularly made within each succeeding calendar month to be credited for that month.  In order to guarantee credit during a particular month, a payment should be received by the Trustee by the 22nd of that month. You have the option of making your payment 4 different ways:

                               1. Online:                             www.13ark.com

                              2. Phone:                             (877) 564-6751


                              3. Regular Mail:                   Joyce Bradley Babin, Trustee

                                                                          3411 Momentum Place
                                                                          Chicago, IL 60689-5334


                              4. Overnight Delivery:          Fifth Third Bank

                                    
(non U.S. Postal Service)        Attn: Lockbox 233411
                                                                          4900 West 95th Street

                                                                          Oak Lawn, IL 60453

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Can my payment be lowered or may I skip or postpone a payment?

Your required plan payment cannot be lowered by the Trustee; the plan payment can be lowered only by a formal modification of your plan filed by your attorney.  Also, the Trustee has no authority to allow you to skip or postpone a plan payment.

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Why did my payment change?

Should your plan payment unexpectedly change, the change may have resulted from the addition of an automobile insurance premium, a change in your contract home mortgage payment, or a modification of your plan.  Normally, the change can be explained by either the Trustee's office or your attorney.
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Is it possible to make credit purchases, i.e., accrue post petition debt, while I/we are in Chapter 13 
bankruptcy?

You should never incur a new debt while in chapter 13 without first consulting your attorney.
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Revised: September 16, 2014 .