Government liquidating homes
trustee or bankruptcy administrator (2) appoints a standing trustee to serve in all chapter 13 cases.
The chapter 13 trustee both evaluates the case and serves as a disbursing agent, collecting payments from the debtor and making distributions to creditors.
The parties typically resolve problems with the plan either during or shortly after the creditors' meeting. The debtor should consult an attorney to determine the proper treatment of secured claims in the plan. The bankruptcy clerk gives notice of the bankruptcy case to all creditors whose names and addresses are provided by the debtor. As long as the stay is in effect, creditors generally may not initiate or continue lawsuits, wage garnishments, or even make telephone calls demanding payments. Consumer debts are those incurred by an individual primarily for a personal, family, or household purpose. Nevertheless, the debtor may still lose the home if the mortgage company completes the foreclosure sale under state law before the debtor files the petition. A chapter 13 bankruptcy is also called a wage earner's plan.
It enables individuals with regular income to develop a plan to repay all or part of their debts. During this time the law forbids creditors from starting or continuing collection efforts. The debtor must also file a certificate of credit counseling and a copy of any debt repayment plan developed through credit counseling; evidence of payment from employers, if any, received 60 days before filing; a statement of monthly net income and any anticipated increase in income or expenses after filing; and a record of any interest the debtor has in federal or state qualified education or tuition accounts. Unless the bankruptcy court authorizes otherwise, a creditor may not seek to collect a "consumer debt" from any individual who is liable along with the debtor.