creditors while at the same time providing a fair means to repay them as much as you can. It allows you to

keep some or all of your property during the time you are repaying creditors and it permits you to modify

some contract payments and interest rates. Your plan can limit some interest, late charges and penalties on

some debts, and allow you to extend payments on some of your debts. The Bankruptcy Court must approve a

plan before it becomes effective; the order approving a plan is called a Confirmation Order. Chapter 13 is an

attractive alternative to "straight" (Chapter 7) bankruptcy, and has gained widespread acceptance across the

country.

your case a number. This number is very important. WRITE YOUR CASE NUMBER ON ANYTHING

YOU SEND to the Trustee's office, the Clerk of Court, or any other party, including any payment you make

to the Trustee. YOUR CASE NUMBER IS ON THE OUTSIDE OF THIS BOOKLET UNDER YOUR

NAME.

1. Court Costs: The filing fee must be paid to the Bankruptcy Court to begin the case.

2. Chapter 13 Trustee's Fees: By law, the Chapter 13 Trustee is required to charge a fee as a percentage of

disbursements. The fee may vary somewhat during your case.

3. Your Attorney's Fees: Your attorney's fee should be set forth in your Chapter 13 Plan.

attorney) and do not know how to proceed, the Chapter 13 Trustee

attorney. The Chapter 13 Trustee is not your attorney.

attorney became obligated to appear and represent you throughout your Chapter 13 case. Your attorney must

continue to appear on your behalf as long as your case is active. Of course, you have the right to change

attorneys. In addition, your attorney may withdraw from your case, with court approval, under certain

circumstances. If you ever have any questions concerning your case, your creditors, your rights under the

Bankruptcy Code or your options under Chapter 13, ask your attorney first.

Your attorney should have explained to you how much the legal fee will be and how it will be paid. In most

cases, your attorney will be paid the allowed fee through the Chapter 13 plan. Be sure that you have

specifically discussed whether additional legal services during your plan will cost you more money or

whether.the initial fee will cover all legal services. All fees charged by your attorney must be reviewed and

approved by the Bankruptcy Judge, even if you agree to pay more.

When you need advice or assistance, you should be able to get help from your attorney. Although the

Trustee's office is able to answer many questions, the law prohibits the Trustee, Trustee's staff, Bankruptcy

Clerk's office and the Court from giving you any legal advice. If you have a problem, a question, or need

advice, please call your attorney first.

address for as long as you are in a Chapter 13. All notices or papers filed in your case will be sent to you at

the address listed in your bankruptcy petition. If you move or change your mailing address, you must inform

your attorney, the Trustee, and the Bankruptcy Court, in writing, of your new address. You will be bound by

notice of any papers or notices sent to your address in the file if you have not given written notice of your new

address to both the Trustee and the Bankruptcy Court Clerk's Office.

however. Please direct all legal questions to your attorney. Remember that the Trustee is not your attorney.

self employment, Social Security, Worker's Compensation, Disability or Retirement Income. If you make a

plan payment personally, do so by money order, personal check or cashier's check. Be sure to include your

name, address and your Chapter 13 case number on the check.

It is important that both you and your employer understand that a payroll deduction order is not a garnishment.

The Bankruptcy Code permits a Bankruptcy Court to issue a deduction order as an aid in the efficient

administration of Chapter 13 cases. When you voluntarily filed your Chapter 13 case, all of your future pay

became subject to the Court's exclusive jurisdiction as long as you are in a Chapter 13 case. We find that most

employers understand that you are making a serious effort to repay your debts. If your employer has any

questions, he or she may call the Chapter 13 Trustee's office for an explanation.

and send them to the Trustee, you have the obligation to make sure payments are made. If your employer ever fails
 
to make a plan payment deduction, you must tell your attorney that the deduction was not made and

YOU must send the needed plan payment to the Trustee by money order, personal check, or cashier's check.

You should keep your pay stubs to show that your employer is deducting the payments. If a payment is not

received by the Trustee as required by your plan, any creditor in your case may ask the Court to dismiss your

case. The Trustee will ask the Court to dismiss your case if you fail to make the required payments.

Payments to real estate mortgage creditors, that come due after your case starts, must be made directly to

those creditors. If a serious problem prevents you from making such a payment, you should ask your attorney

to contact the creditor to attempt to work out some other method to bring the missed payment current.

Otherwise, a missed payment may result in a motion by the creditor for relief from the automatic stay to

conduct a foreclosure; then, you will receive notice of a hearing at which you may appear and respond to the

creditor's motion. If you do not respond or appear, the motion will probably be granted by the Court.

Creditors or the Trustee may request dismissal of your Chapter 13 case if they believe your plan will not work

(is not "feasible") or if you fail to attend the meeting of creditors or fail to comply with other requirements of the

Bankruptcy Code. Also, if you fail to appear at hearings, fail to file a plan or schedules, cause delays in your

case, fail to file or conduct your case in good faith, file Chapter 13 cases often, or otherwise show an intention

not to complete your plan, the Court will dismiss your case and you may be ineligible to be a debtor in any

bankruptcy case for 180 days from the date of the dismissal order.

your attorney. A dismissal will end the protection of the automatic stay. Creditors will once again have the right to attempt to

collect their debts, including interest, finance charges, and late fees. A request for dismissal of your case must

be in writing and filed with the Bankruptcy Court, with a copy sent to the Chapter 13 Trustee.

petition are subject to an automatic stay which prohibits them from bothering you concerning your debts.

Routine delinquency notices need not cause any concern, but if you get a more personal, direct contact from a

creditor, such as a telephone call, a personal letter, a summons, or a visit in person, you should inform the

creditor that you have filed a Chapter 13 case and give your case number and your attorney's name and

address. You are under no obligation to discuss the debt or your case with the creditor. Be sure that you get

the name of the creditor and the person who contacted you and give this information to your attorney. (See

Creditors Not Listed.)

order for you to keep your secured property while your creditors are being paid through your Chapter 13

plan, you must make certain that the insurance premiums are paid on time. The secured creditor must be listed

as lienholder and as loss payee on insurance policies and binders.

The Bankruptcy Court has a separate rule requiring you to keep vehicles insured at all times. If you let

insurance lapse on any vehicle (car, truck, van, or motorcycle, etc..), the secured creditor may request, and

the Court may enter an order, allowing repossession, without notice or hearing. Keep your insurance policies

handy should any creditor ever state that your insurance has lapsed.

incorrect claims. The Trustee's office will pay all claims as filed, unless and until an objection is filed.

To find out how much you owe to each of your creditors and how much you have left to pay on your Chapter

13 Plan, write to the Trustee's office and ask for a status report. Always include a self-addressed, stamped

return envelope with your request. The Trustee's office will then send you a statement listing all of your

creditors who have filed proofs of claims in your case, and the balances due each of those creditors at the time

of your request. The status report will show the payoff balance to each of your creditors and of your Chapter

13 Plan. Remember that regardless of the balance due indicated on the "status report", you are required to make at

least thirty-six (36) months of plan payments into your Chapter 13 plan, unless your plan pays a 100%

dividend to all creditors in less than thirty-six (36) months.

Trustee during the first 36-months of your plan. Disposable income is the difference between gross income and.normal expenses.

The total of disposable income over the minimum 36-month plan period is shown on the Trustee's status report as the "base".

Your plan cannot be completed until you pay to the Trustee an amount equal to your disposable income for 36

months or the minimum amount of payments that you agree to make in the plan, whichever is greater. You will

not have to pay more to the Trustee than is necessary to pay all of your debts in full. If changes are made to

your plan after your plan has been confirmed and your plan has a "base" amount, be sure to ask your attorney

how the change in your Plan effects the minimum thirty-six (36) month plan period. It may not be in your best

interests to pre-pay your Chapter 13 case. Before you make any payment to the Trustee, other than your

regular plan payments, talk to your attorney first! Only after advice from your attorney should you make any

lump sum payments to the Trustee.

filed by governmental units must be filed within 180 days after you filed your Chapter 13 petition. A creditor

may obtain an order from the Court allowing the filing of the claim beyond the 90-day period in certain

circumstances.

When you receive a status report from the Trustee, you should read and examine this report very carefully. If a

creditor's name is listed inaccurately or any amount claimed appears to be incorrect, or if you dispute the claim

for any other reason, contact your attorney at once. If you and your attorney cannot resolve the problem with

the creditor, your attorney should promptly object to the claim. If the creditor disagrees with you, the correct

amount of the claim will be determined by the Court at a hearing. Unless you object to an incorrect claim,

however, the Trustee is required to make payments to the creditor based upon the amount of the proof of

claim, not the amount you listed in your schedules.

Therefore, review your schedules and the creditor mailing matrix filed by your attorney to make certain that all

of your creditors are listed, the addresses shown are accurate, and all debts are listed. If you become aware of

an unlisted creditor-- one you owe but forgot to list-- you should let your attorney know the details immediately.

Time is very important; do not delay in notifying your attorney so that your schedules may be amended.

creditors are rare, because you are not permitted to borrow money or run up a bill while under Chapter 13, except under

very unusual circumstances. (See Credit Card and Post-Petition Debt.)

creditors. The three basic types of creditor claims are: priority, secured and unsecured.

Then your unsecured claims are paid. Unsecured creditors are not paid until the priority and secured

claims are paid in full. [Note:This item has been edited by Richard Lee due to new Plan form 10/05.]

from the date of filing of your Chapter 13 case. This is important: giving up the right to full bankruptcy relief is

significant and could work to your disadvantage if, in the future, you are faced with a financial catastrophe.

Most people would like to pay all their debts. Paying all debts in full may help you reestablish your credit after

your Chapter 13 is finished.

obtain permission from the Court to collect the unpaid portion from your co-debtor.

without approval.

approval. If you sell your property without permission, the sale may be set aside. If you want to sell any of

your property, trade in a car or sell your home, be sure to discuss it with your attorney and obtain Court

approval.

cannot recover money before obtaining the approval of the U.S. Bankruptcy Court. Thoroughly discuss any

legal matter with your bankruptcy attorney and make sure your non-bankruptcy attorney knows about your

Chapter 13 case. Your non-bankruptcy attorney cannot receive any fees for representing you unless approved

by the U.S. Bankruptcy Court.

After you have received your discharge, you may receive a small refund check from the Trustee. This refund

will be paid if you have paid more to the Trustee than is required to pay your debts pursuant to your confirmed

Chapter 13 plan.

was in the past, the personal opinion of any lender who looks at your credit record. A credit rating is not

graded as A, B, or C, or 1, 2, or 3. It is a record of all your past credit performances. Your credit record is

compiled by a private agency and is made available to creditors who, by their own standards, decide whether

or not to grant credit to you. Suits, collections, attachments, Chapter 7 cases and Chapter 13 cases are

indications of credit problems. After many years and thousands of paid in full Chapter 13 cases, we find a

good many knowledgeable creditors looking with respect upon those who have paid debts in full under a

Chapter 13 plan. Any credit record that has been blemished by a payment problem must be gradually rebuilt.

Remember, though, that Chapter 13 is a good place to start.