The United States Bankruptcy Court of the Southern District of New York provides guidelines that those filing for chapter 13 bankruptcy need to adhere to. At Todd Cushner & Associates, our bankruptcy litigation experts navigate White Plains residents through the entire process, ensuring compliance is met.
Chapter 13 Debtor Instructions to Comply with the Bankruptcy Code and Bankruptcy Rules
- Debtor must comply with all the applicable requirements of the Bankruptcy Code and Bankruptcy Rules, including but not limited to, those found in 11 U.S.C. § 521 and Bankruptcy Rules 2015 and 4002, where applicable. This includes a duty to file tax returns and operating reports.
- Tax Returns. File your tax return on time or obtain an extension to file your tax return. Send a copy of your tax return or the extension to the Trustee within thirty (30) days of filing your tax return. [Fed. R. Bankr. P. 4002(b)(3)].
- Operating Reports. If you are self-employed or operate a business, you must provide the Trustee with monthly operating reports throughout your entire case. [Fed. R. Bankr. P. 2015(c)(1)].
- Tax Refunds. You can voluntarily use your tax refund to make payments. The Court may also order you to contribute some of your tax refund to the Plan. [11 U.S.C. § 1306(a)(1)].
- You must make all payments under the Plan before the Plan is complete. [11 U.S.C. § 1322(b)(5)].
- You must maintain insurance or the court will order you to. [11 U.S.C. § 1326(a)(4)].
- Payment Records to Trustee. You must keep and maintain all payment records to Trustee when you are engaged in business. [Fed. R. Bankr. P. 2015(c)(1)]. However, it is still a good idea to keep and maintain all payment records made to Trustee even if you are not engaged in business.
- Payment Records to Secured Creditor. You must keep and maintain all payments made to Secured Creditors once you file your bankruptcy petition. [11 U.S.C. § 1326(a)(1)(C)].
- Donation Records. If you make charitable donations during your case, you should record and maintain those charitable donations. The Trustee or Court may require you to show them.
- Domestic Support Obligation(s). You must maintain a record of all domestic support payments paid directly to a separation agreement, divorce, child support or court order. You must also complete and sign the “Certification Regarding Domestic Support Obligations” required by Local Rule 4004-2. Return the Certification to the Trustee when you submit the last payment of the Plan. [Bankr. S.D.N.Y. R. 4004-2].
- Change in Address. You must notify the court and Trustee if your address or contact information changes during the case. [Fed. R. Bankr. P. 4002(a)].
- Disposal of Property. You cannot sell, burden, transfer, or dispose of any real property or personal property outside of the ordinary course of business without court approval. [Fed. R. Bankr. P. 6007].
- Proof of Fair Market Value. The values in your schedules are not adequate proof of the fair market value of collateral or outstanding liens. The court will consider a broker’s price opinion or appraisal as evidence of the value of your real property, a payoff letter, or account statement as evidence of a lien amount. [11 U.S.C. §§ 522(f), 101(36), 101(53)].
