5 Significant Events That Happen after a Chapter 13 Plan Receives Confirmation

Confirmation of a Chapter 13 bankruptcy plan is a big relief for most debtors in a Las Vegas bankruptcy. They have their Order of Confirmation, and can begin moving forward with their three- to five-year repayment plans. After that, they receive their discharges. The question though, is what happens next. There are five events.

(1)  The debtor can choose between putting together an electronic payment system or paying with certified funds.

(2)  Debtors must provide their attorneys with copies of their filed income tax returns. It’s also important to maintain some contact with attorney in case debtors’ financial circumstances change.

(3)  Debtors’ attorneys won’t be the only ones who receive copies of petitioners’ income tax returns. Bankruptcy Trustees also see them as well. They compare debtors’ incomes to what they reported in their bankruptcy schedules, and they can choose to motion the court to increase the amounts in the payment plan. Supposedly, if debtors’ disposable incomes increase by ten percent, the Trustee will make the motion. It depends on the Trustee and the jurisdiction.

(4)  Aside from that, the debtor must make the payments. Many debtors do not make it to the discharge stage of a Chapter 13 Las Vegas bankruptcy, so it’s important to very carefully manage one’s expenses. It’s especially difficult because not only do debtors pay the bankruptcy estate via the Trustee, but they must also save money for themselves in the meantime in case something goes wrong. This can mean curtailment of discretionary spending (e.g. restaurant food), foregone vacations, and even more use of public transit to save on fuel. Receiving a discharge of a subordinate mortgage on debtors’ homes can be a strong incentive to complete the repayment plan.

(5)  Debtors must complete a post-filing financial management course. Some attorneys will pay this expense, and some cost more than others.

Once these steps are concluded and the payments are made, debtors receive their discharge. It can be a hard process, but it is not impossible.

For more questions about bankruptcy in Las Vegas, please feel free to contact an experienced Haines & Krieger Las Vegas bankruptcy attorney for a free initial consultation by calling 702-880-5554.

Leave a Comment