This page provides basic background information regarding Chapter 13 of the Bankruptcy Code. It should not be interpreted as providing professional advice for your particular circumstance. Such advice should be sought from a professional, such as an attorney, who will become familiar with your particular situation and objectives.
Your first plan payment is due within 30 days of filing your case - do you not wait until after your Meeting of Creditors to start plan payments. You are also expected to make a plan payment each month. Consult your attorney for more specific details regarding your particular case.
Consult your attorney. While such purchases are not forbidden, they must be conducted in an appropriate manner. Your attorney knows your situation and can assist you in getting the necessary approvals.
With regard to "no position" letters, please see the FAQ - I would like to request a "no position" letter from the Trustee's Office for more information.
Many times, the Trustee's Office is asked to review automobile purchase requests and, in some instances, may issue a "no position" letter. The Trustee's Office will issue such a letter if he has no objection to the proposed purchase. In order to properly review the requests, ALL of the following information must be supplied to the Trustee:
(1) Make, Model, Mileage and Year of the Proposed Vehicle;
(3) Interest Rate;
(4) Financing terms (proposed monthly payment, length of loan and interest rate);
(5) Year, Make, Mileage and Model of Vehicle Being Traded-In; and
(6) The reason why a replacement vehicle is needed.
Once you have compiled all of this information, please email the request to firstname.lastname@example.org.
Chapter 13 is a complex legal proceeding and we urge you to be represented by counsel. If you do not have an attorney, please see the Bankruptcy Court's Self Help Program by clicking here.
Chapter 13 is part of the Title 11 of the U.S. Code, particularly Sections 1301 through 1329.
A Chapter 13 bankruptcy is also called a wage earner's plan. It enables individuals with regular income to develop a plan to repay all or part of their debts. Under this Chapter, debtors propose a repayment plan to make installments to creditors over three to five years.
The Chapter 13 Trustee evaluates the case and serves as a disbursing agent by collecting payments from the debtor and making distributions to their creditors.
Debtors are required to file all of the documents required under the Bankruptcy Code and the corresponding Rules. One of the most important documents in a Chapter 13 filing is the Chapter 13 Plan. The Plan designates how the debtor will fund the plan and how that funding will be distributed to the creditors.
Generally, plan payments are due at the beginning of the month and delinquent after the last day of the month.
The only two ways to make your plan payments are (1) through U.S. Mail to our lockbox located in Memphis, TN or (2) electronically using the TFS system. The address to mail your monthly payments is Jack N. Zaharopoulos, Chapter 13 Trustee, PO Box 6008, Memphis, TN 38101-6008. If making an electronic payment via TFS, please click here.
Please make sure not to confuse TFS with the Bankruptcy Court's online fee payment system. The Bankruptcy Court's online fee payment system is found on the Bankruptcy Court's website and is only for payment of any Court fees.
The Trustee (or any other interested party) can file a motion to dismiss your case if you fall behind more than a month. You have several options to cure the arrearage so you should discuss these options with your attorney. Do not hide from your attorney or avoid their attempts to contact you. They are there to help you.
If you are not making your payment electronically, payments cannot be delivered by any method other than regular mail via the US Postal Service since we use a Post Office Box. Overnight and certified mail should be avoided since they require special handling and therefore may slow the processing of the payment. If you are in this situation, contact your attorney immediately so appropriate arrangements can be made to avoid dismissal of you case. In any event, do not assume that a hearing on a Motion to Dismiss is cancelled because you have a pending payment or made payment shortly before any scheduled hearing. Contact your attorney should you have any questions.