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You are here: HOME>GEORGIA BANKRUPTCY LAW QUESTIONS>CHAPTER 13 INFO

The Bankruptcy Judges and the Chapter 13 Trustees have established minimum standards for lawyers in Chapter 13 cases. For example, these guidelines obligate all lawyers to actually meet with their clients personally and provide certain information.  Because I do not operate a high volume firm, you will always meet with your attorney (me) and you will always have prompt access to your me lawyer by phone or e-mail.  My intention is to offer you far more than the minimum. Click here to read what the Courts consider to be a minimum level of service for Chapter 13 representation.

How Does Chapter 13 Stop a Foreclosure?

The minute you file a Chapter 13, a legal protection called the “automatic stay” goes into effect.  The automatic stay functions as a form of protection that stops just about every creditor action.  Specifically, pending foreclosures are halted immediately, even if the foreclosing lender does not yet know about your bankruptcy filing.  If, for example, your foreclosure sale is scheduled for 10 AM on a Tuesday morning in Fulton County, and the actual sale occurs at 11:53 AM, a Chapter 13 case filed at 11:32 AM makes the 11:53 AM foreclosure sale void.  Obviously you would not want to wait until minutes before foreclosure to file but this example should demonstrate just how powerful and immediate Chapter 13 automatic stay protection works.  I have written more about the Georgia foreclosure process and the impact of the automatic stay on my blog - click to read that post.

As you probably realize, stopping the foreclosure in only the first step of the process.  We have to be able to prepare and submit a repayment plan to the bankruptcy judge that “cures” your mortgage arrearage and provides for a repayment of that arrearage to your mortgage lender as well as repayment to all creditors. Click to read more about how Chapter 13 not only stops foreclosure but offers you a realistic opportunity to restructure your debts and save your home permanently.

Can someone object to my Chapter 13

Yes - either the Chapter 13 trustee or a creditor can object to your Chapter 13 by filing an “objection to confirmation.”   Most trustee objections follow the 341 meeting of creditors and relate to things like un-filed tax returns, lack of funding of your plan, or differences between your testimony and what is scheduled in your petition.

Creditor objections are less common and may relate to a lack of insurance on secured collateral like a house or car.

Chapter 13 trustee objections are very common in Chapter 13 cases - it is my job as your lawyer to cure the trustee’s objections by the confirmation hearing, which is about 2 months after filing.

A “funding” objection is the most common trustee objection.  Your trustee will file a funding objection if your plan payment becomes delinquent. Learn more about how to keep the funding of your Chapter 13 plan current by clicking on the link.

Can I Modify my Mortgage in a Chapter 13?

Most people find that their biggest debt relates to their home mortgage.  More recently, many of my clients have discovered that the value of their homes has gone down - sometimes a home may be worth tens of thousands of dollars less than what is owed.

In 2009, the United States Congress considered a bill that would have allowed bankruptcy judges to modify mortgages.  Supporters of this bill argued that such a provision would help stabilize the mortgage market and encourage “underwater” homeowners to stay in their homes.  This mortgage modification bill did not pass in the 2009 Congress. 

However, the Bankruptcy Code does provide some relief for homeowners who have at least two mortgages (a first and a second mortgage).  Bankruptcy Code Section 506 allows for something called lien stripping in Chapter 13.  When a lien is stripped it is treated as an unsecured debt in a Chapter 13 plan.  If your plan pays unsecured creditors 15 cents on the dollar, the send mortgage holder gets only 15 cents on the dollar.

Only second mortgages can be stripped and only when the value of the home is less than the debt owed to the first lender.  A colleague of mine, Columbia, S.C. attorney Lex Rogerson has written a helpful article about lien stripping in Chapter 13, which you can read by clicking on the link.

Will I have to go to Court for my Chapter 13?

If you file Chapter 13, you will need to attend one very brief, informal hearing.  You must bring two forms of ID - one a picture ID and the second an ID with your Social Security number.  Click here to learn what happens at a Chapter 13 meeting of creditors hearing in the Northern District of Georgia and more about the potential objections that can crop up.

How long does it take for me to get my credit restored after Chapter 13?

Because you are generally not permitted to incur new credit while you are in Chapter 13, you really cannot start to rebuild your credit until after your case is over.  Since a Chapter 13 has to last 3 years, but no more than 5 years, your ability to restore your credit will be delayed when you file a Chapter 13.

Notices Issued by the Court in my Chapter 13 case

Your Chapter 13 case functions as a payment plan that will last between three and five years.  It involves you, your Chapter 13 trustee, your creditors and a bankruptcy judge.  You will discover quickly that a lot of paper will be generated in your bankruptcy case.  Here are some of the documents you will see:

Notice of Bankruptcy Case Filing - Chapter 13

Notice of Meeting of Creditors and Deadlines - Chapter 13

Notice of Filing Proof of Transfer of Claim - Chapter 13

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