When an Oak Brook bankruptcy attorney files the case, the debtor must appear again at a 341 meeting of creditors. The debtor must appear before the trustee to answer questions based on the information provided in the bankruptcy petition, schedules, and statement of financial affairs. The debtor must provide four years of federal tax returns in a Chapter 13 bankruptcy filing. The debtor must provide two months’ worth of paycheck stubs to the Chapter 13 trustee prior to the 341 meeting of creditors. The debtor must also complete a credit counseling session within 180 days of filing the second case. In some circumstances, the debtor can use the first credit counseling session as long as it hasn’t been more than 180 days prior to filing the second case. The debtor will also have to take two-hour financial management class after the case is filed but prior to receiving a discharge. This is true whether your file Chapter 7 bankruptcy or Chapter 13 bankruptcy.
Creditors are going to be very skeptical on a second bankruptcy claim, and they will note the case closely and look for any reason to come in on a motion to either dismiss or a motion to modify the automatic stay. If a debtor continually files bankruptcy cases to thwart the bankruptcy system, to thwart the creditors, then creditors can bring a motion, or the trustee can bring a motion as well, barring the debtor from re-filing for a period of 180 days. The barring of 180 days will allow a mortgage company to completely foreclose on the property in most cases.
One of the most abusive ways a bankruptcy Chapter 13 is handled is just to file to stop a sheriff’s sale with no intent of going forward with a Chapter 13 bankruptcy case. The courts and the creditors and the trustee are wise to this kind of antics, and they will actually bring a motion barring the debtor if they feel the debtor is just filing cases to stop a sale date repetitively.
Chapter 13, however, can reorganize all types of debt: dischargeable debt and non-dischargeable debt. For example, student loans can be put in a Chapter 13 bankruptcy and paid either in full or less than in full. After the Chapter 13 case is over, any remaining portion of the student loan will then be due and owing plus interest. Taxes can be put into a Chapter 13 bankruptcy as well as all types of other debt. If someone is being harassed by the IRS, if someone has a levy against their wages, if someone has a levy against their bank account, the filing of a Chapter 13 bankruptcy case will release that levy. Some taxes are paid in full through a Chapter 13 bankruptcy case, and some taxes can be paid less than in full. Any tax that is a priority tax, meaning that it was due and owing within the last three years, is going to have to be paid back 100 percent on the dollar. Any tax that is an unsecured priority tax, such as a tax more than three years old, can be paid less than 100 percent in particular cases. Your Chicago bankruptcy professional will be able to provide the determination for you.