There are steps at the end of your case that are necessary to help you obtain your discharge. Depending on the Chapter of Bankruptcy that you are in and whether any liens were provisionally avoided, certain work will need to be done to help you successfully complete your case.
If you obtained a lien avoidance that is subject to a discharge order being entered, we need to either file an adversary proceeding (essentially a lawsuit within the bankruptcy to remove the lien) or in the alternative, some judges allow other procedures to formally avoid the lien after discharge without an adversary procedure.
Once you complete all plan payments and typically after the Trustee files a final report, we need to apply for a discharge, but we can't until you take your second course in Financial Management or Debtor Education. You can use the links under our Credit Counseling web page to take the second course. Make sure to type in the attorney code associated with the company you choose.
Our office will typically apply for interim or final compensation at this time but often the estate has already disbursed all funds and the Court will order a direct payment from the client.
*FROM TFS Email to Attorneys
USE TFS TO MAKE AND TAG A PAYMENT
Now that tax season is here, as a Chapter 13 client may have the onerous responsibility to make sure that one-time tax refund payment gets to the trustee on time.
TFS is here to help! With the Attorney Portal, you can assist your client in making a manual payment. Simply choose tax refund as a reason and track it for the future of their Chapter 13 payment plan, or just remind your clients that they can log in and schedule the payment themselves. REGISTER for the Attorney Portal, help avoid defaults now, and save yourself the stress of dealing with motions to dismiss later!
The general answer is that a client (Debtor) may be able to use bankruptcy reorganization to save a home from foreclosure that he or she is not liable on the loan. The way to do this is through a reorganization in either a Chapter 11 or a Chapter 13. This situation arises when you as the client inherit a home or parcel of real property that you want to salvage from foreclosure. Although there is no definitive 9th Circuit case law on it, other jurisdictions allow it and our office has had positive experiences with the tactic working with smooth confirmations of reorganization plans..
For those of you with timeshares, how we treat them in bankruptcy depends on several factors:
Once we know a little bit more information about you, we can guide you as to how to protect your interests. Generally, you may be able to reject the lease or intend to sell it and discharge obligations prior to filing but you may continue to be liable for post-petition (after you file) costs and expenses related to ongoing maintenance fees until you transfer your ownership or until it forecloses. With that being said, if you intend to get rid of the timeshare, you may not want to sit on it and think your obligation is wiped out just by filing bankruptcy because there may be future potential ongoing maintenance obligations. You may need to be proactive and transfer your interest through foreclosure or selling your interest in the timeshare to prevent ongoing obligations with maintenance fees
If you have an interest in a timeshare, make sure we know about it so we can provide you with the right legal guidance.
Directly from: http://www.cacb.uscourts.gov/debn-faqs
What is DeBN?
DEBTOR ELECTRONIC BANKRUPTCY NOTICING (DeBN) is a FREE and voluntary service that allows debtors to request delivery of orders and court-generated notices by email rather than by U.S. Mail at a mailing address.
How does DeBN work?
Debtor signs and files a Debtor’s Request to Activate Electronic Noticing (DeBN) form, the court registers the debtor for a DeBN account, the BNC sends a confirmation email to the debtor, and the debtor activates the account by clicking on a link in the confirmation email. Once a DeBN account is activated, all future orders and court-generated notices are sent to the debtor as a single PDF attachment to an email. A separate email is sent for each order or court-generated notice. PDF attachments exceeding 8 MB will be sent by U.S. mail to the debtor’s mailing address, as these orders and court-generated notices are too large to be sent by email. The DeBN account still remains active. There is no cost to view a PDF attachment and no limit to the number of times a PDF attachment can be viewed. The PDF attachment can be printed, saved to a computer, or retained for viewing any time.
Who is the BNC?
The BANKRUPTCY NOTICING CENTER (BNC) sends orders and court-generated notices from all bankruptcy courts to debtors and others parties in bankruptcy cases.
What are Orders and Court-Generated Notices?
Orders and court-generated notices are documents filed by bankruptcy courts. Here are some examples:
A debtor who requests DeBN consents to service by email of ONLY orders and court-generated notices. The BNC will send emails to debtors on behalf of the court.
No other parties are allowed to send documents to the debtor by email. All other parties, including creditors and trustees, must continue to serve documents upon the debtor according to court rules, i.e. by U.S. Mail, overnight mail, or personal delivery.
How do I request DeBN?
SIGN UP FOR DeBN - It’s easy!
Complete and file a Debtor’s Request to Update DeBN Account (DeBN) form if:
U.S. Bankruptcy Court Locations
Los Angeles Division
255 E. Temple Street
Los Angeles, CA 90012Santa Ana Division
411 West Fourth Street
Santa Ana, CA 92701-4593Northern Division
1415 State Street
Santa Barbara, CA 93101
3420 Twelfth Street
Riverside, CA 92501-3819San Fernando Valley Division
21041 Burbank Boulevard
Woodland Hills, California 91367*
You can also send the form to our office and we will file it on your behalf.
*This post is found on the Central District of California's bankruptcy court website at http://www.cacb.uscourts.gov/debn-faqs. .
Information for the Northern District of California can be found here: http://www.canb.uscourts.gov/debn
ZACHARY V. CALIFORNIA BANK & TRUST: 9th Circuit Overrules In re Friedman, 466 B.R. (9th Cir. BAP 2012) - Absolute Priority Rule Applies in Individual Chapter 11s
Affirming the bankruptcy court’s order sustaining an objection to a chapter 11 plan of reorganization, the panel held that the absolute priority rule in 11 U.S.C. § 1129(b)(2)(B)(ii)―providing that a dissenting class of unsecured creditors must be provided for in full before an individual debtor can retain any property under a reorganization plan―continues to apply following the amendments to the Bankruptcy Code enacted as part of the Bankruptcy Abuse Prevention and Consumer Protection Act. Following other circuits, the panel overruled In re Friedman, 466 B.R. 471 (9th Cir. BAP 2012), and adopted
the “narrow view” that the BAPCPA amendments merely have the effect of allowing individual chapter 11 debtors to retain property and earnings acquired after the commencement of the case that would otherwise be excluded under § 541(a)(6) & (7). Thus, an individual debtor may not “cram down” a plan that would permit the debtor to retain prepetition property that is not excluded from the estate by § 541, but may cram down a plan that permits the debtor to retain only postpetition property.
What needs to be done to close out your case and help you obtain your discharge depends on the chapter of bankruptcy you are in and the jurisdiction your case is filed. The two basic things that you as clients need to do are:
1) take your second course in financial management (you can use Access Counseling, Inc. and use attorney code AW22373 and they will file the certificate of completion on your behalf);
2) apply for a discharge on the local form that we may call a 1328 form. We will fill the form out on your behalf and have you review and sign.
There may be other requirements in your case to close it, such as obtaining an order avoiding the junior lien on your home once we do obtain a discharge or we may need a motion to modify to adjust your plan if it no longer complies with the original confirmation order. Make sure to contact us and keep us apprised of your finances and any issues you have throughout your case and we will spend time with you near the time of your discharge to guide you through the process. .
Although Chapter 11 is generally associated with corporate debtors or other commercial entities such as partnerships or associations, it may be used by individuals as well. See Toibb v. Radloff, 501 U.S. 157 (1991). The goal of a Chapter 11 case is the rehabilitation of the debtor. By filing a Chapter 11 petition, the debtor is able to continue the operation of its business under the shelter of the automatic stay. The debtor can preserve its profitable activities and assets while it negotiates with creditors and develops a strategy for the satisfaction of debts and the revitalization of its failing enterprise. If the negotiations are successful, the debtors crafts a plan of reorganization for its rehabilitation.