Typical Questions from your Chapter 13 Trustee at your 341 Meeting of Creditors.
In the Northern District of Georgia, there are four Chapter 13 Trustees, each with a staff of lawyers. Trustee James H. Bone has responsibility for cases assigned to Bankruptcy Judges Bihary and Brizendine. Trustee Mary Ida Townson has responsibility for cases assigned to Judges Mullins and Bonapfel. Trustee Adam Goodman has responsibility for cases assigned to Judges Drake and Murphy. Trustee Nancy Whaley has responsibility for cases assigned to Judges Mullins and Massey.
Do you have any credit cards (you must hand them in to the Trustee)?
Do you belong to a credit union?
Is any money coming out of your pay for any purpose other than taxes or insurance?
Do you contribute to a retirement savings plan or 401(k).
Is money coming out of your paycheck to fund the plan?
Do you own any real estate? If so, how much is it worth?
Have you made any payments to the Trustee (note that even if your case is set up to be paid by employer deduction, you are responsible for making all payments until the payroll deduction kicks in).
Have you filed tax returns for the past three years?
Do you expect a refund this year?
How much will the refund be?
Have you ever filed Bankruptcy before?
Have you made all mortgage payments that have come due since you filed your case?
Do you have insurance on your vehicle?
Do you have a personal injury claim or any other claim for money damages pending at this time?
Common Objections to Confirmation Filed in Chapter 13 Cases
Most Chapter 13 cases will draw one or more objections. Most are easily resolved prior to the confirmation hearing scheduled two to four weeks later. If you should receive an objection, your case is not dismissed - but you should call your lawyer to discuss what to do.
Funding - the most common objection. Your first month’s payment is due 30 days after you file. Do not wait until the 341 hearing to first start thinking about paying into your case. If you can, pay a little extra to make sure that your case is funded.
Term - if creditor claims come in larger than expected, your case may run more than 60 months. This may require an increase in your payment to the Trustee.
Good faith - if you are attempting to include your child’s car in your plan, while paying unsecured creditors a very low percentage, the Trustee may file a good faith objection. Trustees look at each case individually, but things that might draw a good faith objection include private school tuition, a large long distance phone budget, support of an adult child or parent, ongoing contributions to a retirement plan. Trustees will object to what they consider nonessential expenses especially if you are paying your unsecured creditors at 1 penny on the dollar.
109(g) prejudice objection - if this is your third or more case, the Trustee will usually ask the Judge to dismiss the case with prejudice - meaning that you cannot re-file for 6 months. If your case should be confirmed, any future dismissal would be with prejudice as well.
Feasibility - if your budget is extremely tight, or if you lost your job prior to the 341 hearing, the Trustee will object on the grounds that you cannot make your case work.
Missing tax return - The IRS is sent notice of all bankruptcy filings. Since tax claims are usually priority debts, the Trustee cannot calculate the expected term of your case if you may have tax debt. Thus, if you have any missing tax returns, they should be filed prior to or shortly after your Chapter 13 case is filed.
Failure to pay post petition mortgage payments
Failure to cure mortgage arrearage in a reasonable time.
