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.
I filed a 36-month plan. More than 36 months have passed. Why must I continue to make payments?
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. For residential mortgages, the Trustee must send a Notice of Final Cure Payment to the mortgage company and any discrepancies will need to be addressed. During this time, you will need to continue to make your monthly mortgage payments to the Trustee.
What must I do to sell my home?
My case is nearing completion. How will I know when to resume making my mortgage payments directly?
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 case. You should never attempt to sell property without consulting with your attorney as to the advisability, legality and mechanics of such a sale.
FREQUENTLY ASKED QUESTIONS
When my plan is completed, how will I get my car title from my lienholder?
Most lienholders can be depended upon to 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 lienholder a letter asking that you be sent the title. If the title is still not forthcoming, you should contact your attorney for assistance.
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, payments must be made regularly 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. Select "Make A Payment" from the menu above for information on payment options.
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. The Trustee has no authority to allow you to skip or postpone a plan payment.
Why did my payment change?
If your plan payment changes unexpectedly, the change may have resulted from the addition of an automobile insurance premium, a change in your continuing monthly home mortgage payment, a change in payment provided in a previous plan (often called a "step payment"), or a modification of your plan. Normally, the change can be explained by your attorney or the Trustee's office.
Is it possible to make credit purchases, i.e., accrue postpetition debt, while I/we are in Chapter 13 bankruptcy? Is gambling permissible?
You should not incur new debt while in chapter 13 without first consulting your attorney. You should not gamble during bankruptcy.