Frequently Asked Questions (FAQ)

For During your Bankruptcy Case:
Conversion
 
If you are in a current Chapter 13 case one (or more) of the following may occur:
1. You experience a sudden loss of income;
2. You incur new or unexpected expense;
3. You are involved in an auto accident that destroys an automobile you are paying for in your Chapter 13 bankruptcy;
4. Circumstances occur which make Chapter 7 a better option for you.
 
We make every effort to put people in the "right" Chapter for them, but some people do find that they must convert to a different Chapter. It is extremely rare to convert a Chapter 7 to Chapter 13, but it is very common to convert a Chapter 13 to Chapter 7, mainly because of #1-3 above.
 
To convert from Chapter 13 to Chapter 7 you must pay (up front) the court costs of $25 plus the attorney fees. Upon doing so, your case can be immediately converted to Chapter 7. Upon conversion the following happen:
1. No more payments are owed to the Chapter 13 Trustee (they may still come out of your check, but you will get them back);
2. Within 14 days you must file conversion schedules and statements for any information that has changed since you filed your original case;
3. You must attend a 341 meeting with the Chapter 7 Trustee;
4. You are responsible to deal with secured and priority debts that were being paid by your Chapter 13 Plan - you may choose to redeem, reaffirm, or surrender;
5. Your creditors and the US Trustee can object to dischargeability of some or all of your debts;
 

Moratorium
 
If you are in a Chapter 13 case and have a temporary inability to make your Plan payment, you can ask the Court for a moratorium, which is a temporary suspension of your payment. In exchange, you must agree to raise your payment later or extend your Plan period up to a maximum of five years. If you need a moratorium, contact your attorney PRIOR to missing the payment(s). Moratoriums are usually not available to make up already-missed payments, but it is better to ask than be dismissed because the trustee can automatically dismiss your case once you become 60 days delinquent.
 
 
Creditor Harassment
 
Some creditors may illegally contact you during or after your bankruptcy. It is best to document all contacts made by telephone (date, time, who called, and what was said) and provide that information to your attorney. If you receive a letter, bill, or other document that you do not understand, please fax it to us at 888-748-5297, drop it by the office, or scan and email it for us to review. The creditor may be in violation of the law and you may have a right to sue that creditor/collector.
 

Incurring New Debt
 
If you are in a Chapter 13 case you may NOT incur new debt without permission from the Court. If you need a replacement vehicle, furniture, home, or other debt, you must contact your attorney PRIOR to making the credit purchase and obtain permission from the Judge. The only exception to this rule is a medical emergency.
 
Trustee Payments

Chapter 13 Trustee Payments should be mailed to: Ray Hendren, Trustee, PO Box 807, San Antonio, TX 78293-0807.  Remember to include your case number on all payments and to send only money orders or cashier's checks, no personal checks or cash.  Plan payments are due beginning 30 days after the date you file for bankruptcy and you are responsible to make up any payments that are not deducted from your pay check.
Gary Cunha, P.C., Attorney and Counselor at Law
100 N. 6th #604, Waco, TX 76701 254-752-4279
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