Chapter 13 – “Wage Earner Plan”
A Chapter 13 case provides the opportunity to restructure debts through a payment plan which normally lasts three years. With court approval, a plan may last up to five years. The Chapter 13 Trustee receives all funds paid into the plan and pays creditors from these funds.
Chapter 13 Filing Fee
Credit Counseling & Debtor Education
Chapter 13 Filing Requirements
Notice of Possible Dismissal
Meeting of Creditors
General Information
Chapter 13 Flowchart
The filing fee for a Chapter 13 case is identified on the fee schedule, under Court Resources, Fee Schedule.
If an individual debtor is unable to submit the full filing fee at the time of filing, the debtor may request to pay the fee in installments. A completed Application to Pay Filing Fee in Installments – EDVA must be filed with the petition and approved by the court. The form is available on the Court’s web site, at http://www.vaeb.uscourts.gov, under Rules & Forms >> Forms.
Acceptable forms of payment of the filing fee are cash, money order, cashier’s check, signed check, non-debtor personal check, credit card and internet credit card (where the debtor is represented by an attorney). Personal checks and credit cards from the debtor, two-party checks and post-dated checks are not accepted. Payment made by cashier’s check or money order must be made payable to: Clerk, U. S. Bankruptcy Court. Note: The Newport News Divisional Office does not accept cash. In addition, exact change only is accepted for cash payment of fees and services in the Alexandria, Richmond and Norfolk offices.
Credit Counseling and Debtor Education
All individual debtors who file a Chapter 13 bankruptcy are required to obtain credit counseling from an approved provider within 180 days before filing for bankruptcy relief, pursuant to U.S.C. Section 109. A certificate of credit counseling and debt repayment plan, if any (as required by 11 U.S.C. Section 521) from the approved provider must be filed with the petition. Pursuant to Local Bankruptcy Rule 1007-1, if these documents are not filed with the petition, the Clerk shall enter an order dismissing the case, unless the same are filed not later than 3 days after the filing of the petition. If the debtor has received the credit counseling, but does not have the required certificate, he/she must file the required documents within 14 days of the order for relief, or the Clerk shall enter an order of dismissal, pursuant to Local Bankruptcy Rule 1007-1. The debtor may certify, pursuant to 11 U.S.C. Section 109, exigent circumstances that merit a temporary 30-day waiver of this requirement, stating that the debtor requested the credit counseling, but was unable to obtain the services during the 7-day period, beginning on the date on which the debtor made that request. The certification must be satisfactory to the Court. Pursuant to 11 U.S.C. Section 109, the requirement to obtain credit counseling shall not apply, if after notice and hearing, the court determines that the debtor is unable to complete the requirements due to incapacity, disability or active military duty in a military combat zone. A list of approved providers is available from the Court’s web site, at http://www.vaeb.uscourts.gov, under Links, US Trustee Region 4, Approved List of Credit Counseling Agencies located Under U.S. Trustee Program or click Approved List of Credit Counseling Agencies.
Debtors are also required to complete an instructional course in personal financial management from an approved provider after filing bankruptcy, pursuant to Fed. R. Bankr. P. 1007. The debtor must file with the court a statement of completion of the course, either as provided by the provider or prepared as prescribed by Official Form 423, which may be accessed through the Court’s web site, at http://www.vaeb.uscourts.gov, under Rules & Forms >> Forms. The certificate must be filed within 60 days of the date first set for the 341 Meeting of Creditors. Failure to file the certificate will result in the closing of the case without entry of a discharge. A list of approved providers is available from the Court’s web site, at http://www.vaeb.uscourts.gov, under General Information, US Trustee Program, Approved List of Personal Financial Management Providers.
Chapter 13 Filing Requirements
- Voluntary Petition
- Your Statement About Your Social Security Number(s) (Official Form 121) – this form is retained by the attorney for the debtor(s), is not filed unless the debtor is filing pro se, and is not available for public viewing
- Filing Fee – The filing fee is to be paid in full at the time the petition is filed unless the debtor files, and the court approves, an Application to Pay Filing Fee in Installments. An application to pay in installments may be filed by individual debtors only (including married couples) and shall be filed at the time of the filing of the petition – Fed. R. Bankr. P. 1006 - If the debtor is filing pro se, the fee must be paid by cash or money order
- List of Creditors – Mailing Matrix (in .txt format), together with Coversheet – if not filed electronically, via CM/ECF, must be submitted on flash drive – If not filed with the petition, the Clerk will enter an order of dismissal unless filed within 3 days after the filing of the petition – Local Bankruptcy Rule 1007-1
- Statement of Financial Affairs – Must be filed with the petition or within 14 days. – 11 U.S.C. § 521 and Fed. R. Bankr. P. 1007
- Summary of Your Assets and Liabilities and Certain Statistical Information - Must be filed with the petition or within 14 days – Fed. R. Bankr. P. 1007
- Schedules A through J – Must be filed with the petition or within 14 days – 11 U.S.C. § 521 and Fed. R. Bankr. P. 1007
- Chapter 13 Statement of Your Current Monthly Income and Calculation of Commitment Period (Official Form 122C-1) – Individual(s) only – Must be filed with the petition or within 14 days - Fed. R. Bankr. P. 1007
- Chapter 13 Plan and Special Notice to Secured Creditor (if applicable)- Must be filed with the petition or within 14 days. – Fed. R. Bankr. P. 3015. – Use only the Chapter 13 Plan form approved by the Court, available upon request from the Clerk’s Office and on the Court’s website under Forms, Bankruptcy Forms.
- Disclosure of Compensation of Bankruptcy Preparer (Official Form 2800), if applicable – Must be filed with the petition if the bankruptcy petition is prepared by someone other than the debtor(s). 11 U.S.C. § 110
- Bankruptcy Petition Preparer’s Notice, Declaration and Signature (Official Form 119) – Must be filed with the petition if the bankruptcy petition is prepared by someone other than the debtor(s) – 11 U.S.C. § 110
- Attorney’s Disclosure of Compensation (Official Form 2030), if applicable - Must be filed within 14 days or other date set by the court. - 11 U.S.C. § 329 and Fed. R. Bankr. P. 2016
- Copies of Payment Advices (ex.: earnings statements, pay stubs, etc.) or other evidence of payment received by the debtor within 60 days before the filing of the petition. – Individual only – Must be submitted to the trustee, and any creditor who requests copies, at least 7 days before the meeting of creditors conducted pursuant to 11 U.S.C. Section 341 – Local Bankruptcy Rule 1007-1
- Copy of the Federal Income Tax Return for the most recent tax year ending immediately before the commencement of the case – Must be submitted to the trustee, and any creditor who timely requests a copy, at least 7 days before the date first set for the meeting of creditors. 11 U.S.C. Section 521
NOTE:
- A daytime telephone number for the debtor(s) must be provided to the Clerk’s Office, at the time of filing.
- Failure to comply with the filing requirements, or missing deadlines, may result in the dismissal of the case, and the loss of bankruptcy protection.
- Chapter 13 Plan payments must be mailed to the Chapter 13 Trustee assigned to the case.
If a debtor fails to file the required documents at the time of the filing of the petition, as set out in the section Chapter 13 Filing Requirements, the appropriate notice of deficiency is completed and forwarded to the pro se debtor or, where the debtor is represented by an attorney, to counsel for the debtor. The notice of deficiency provides a notice that the case will be dismissed if the required document(s) is/are not filed within the required time period, as set out in the notice.
After the filing of the petition, a Notice of Chapter 13 Bankruptcy Case, Meeting of Creditors, & Deadlines is mailed to the debtor(s) and the creditors of the debtor(s). The notice advises the debtor(s) and creditors of the date, time and location of the 341 Meeting of Creditors (the 341 Meeting of Creditors is held at the Office of the U.S. Trustee), the name, address and telephone number of the trustee assigned to the case, and certain deadlines set in the case. The notice provides a warning to the debtor(s) that the case may be dismissed for failure to appear at the 341 Meeting of Creditors. Please read the notice carefully.
Debtor(s) must present a photo identification at the 341 Meeting, as well as verification of his/her Social Security Number, pursuant to 11 U.S.C. Section 521. Pursuant to 11 U.S.C. Section 343, the debtor shall appear and submit to examination, under oath at the meeting.
- Official Forms & Petition Preparation – The Clerk’s Office of the U. S. Bankruptcy Court does not supply the official forms required for filing bankruptcy. They may be purchased at an office supply store, or may be downloaded from the courts web site, at http://www.vaeb.uscourts.gov, under Rules & Forms >> Forms. If someone other than an attorney assists you in the preparation of the bankruptcy forms, the petition preparer must provide you with the Bankruptcy Petition Preparer’s Notice, Declaration and Signature (Official Form 119) – 11 U.S.C. Section 110.
- Social Security Number – Individuals filing bankruptcy place only the last 4 digits of their Social Security Number or Taxpayer-Identification Number on the bankruptcy petition. Individuals are required to submit, with the bankruptcy petition, a separate Statement About Your Social Security Number(s), Official Form 121, in which the full Social Security Number or Taxpayer-Identification Number is given. If the debtor is pro se, the original of the statement must be provided to the Court; if the debtor is represented by an attorney, the attorney retains the original of the statement. In both instances, the statement is not a part of the public record, and is not viewable by the public. Official Form 121 may be accessed through the Court’s web site, at http://www.vaeb.uscourts.gov, under Rules & Forms >> Forms.
- Protection of Personal Information - Any schedule or supporting document filed with he court should not include: 1) the names of minor children – use only initials; 2) birthdates – use only the year of birth; and 3) financial account numbers – use only the last 4 digits.
- Legal Advice & Resources – The Clerk’s Office of the U. S. Bankruptcy Court is neither permitted to provide legal advice nor to assist in the preparation of the petition, schedules or other documents. The local library contains law books that may be of assistance. The Local Bankruptcy Rules for the Eastern District of Virginia, and information on the various chapters in bankruptcy are available in the Clerk’s Office. The local bankruptcy rules, forms and instructions are also available on the Court’s web site, at http://www.vaeb.uscourts.gov, under Rules & Forms >> Local Rules; and http://www.vaeb.uscourts.gov, under Rules & Forms >> Forms, respectively.
- Appropriate Courtroom Attire & Conduct – All persons present in a courtroom where a trial, hearing, or other proceeding is in progress must dress and conduct themselves in a manner demonstrating respect for the court. Traditional business attire is considered appropriate. Jeans, shorts, and t-shirts are not appropriate.
- Retaining Your Records – It is advisable to keep copies of your petition, schedules, Discharge of Debtor, and if applicable, your Order of Dismissal. You may wish to obtain copies of other pertinent documents.
- Credit Rating & Reports – The Clerk’s Office of the U. S. Bankruptcy Court is not responsible for credit reports or the information reported by credit bureaus. Bankruptcy records are public records and the information contained in them can be retrieved by anyone. Additionally, the Fair Credit Reporting Act allows credit bureaus to keep a bankruptcy on your credit record for up to 10 years from the date of discharge (not the date of filing of the case). Any disputes that you may have with a credit agency must be solved by you and that agency.