"What Happens After Chapter 13 Is Paid Off" Discussion
Upsolve is a nonprofit tool that helps you file bankruptcy for free. Think TurboTax for bankruptcy. Get free education, customer support, and community. Featured in Forbes 4x and funded by institutions like Harvard University so we'll never ask you for a credit card. Explore our free tool
Compiled by Upsolve Team.
Live Community Q&A
763 Members Online · 5,543+ PostsProfessional Q&As for "What Happens After Chapter 13 Is Paid Off"
Upsolve Community Member
2021-12-17
Almost exactly 2 years ago, I sold a car to Carvana because I could no longer afford the payment. I paid off the loan and then had about $5k left over. I was unemployed, so I used that money to help with food/rent for a year (after unemployment ended.) . Then I bought a cheap vehicle with the remaining 3K. Does this count as transferring valuable property in the past two years to someone outside the normal course of my financial affairs? Thank you
Upsolve Community Member
2022-01-03
Which chapter allows me to keep my savings(5k) and can discharge taxes and traffic taxes? I heard chapter 13, but there will be a payment plan which I'll never afford.
Community Replies:
Upsolve Community Member
Faisal, this article discusses the differences https://upsolve.org/learn/chapter-7-versus-chapter-13-bankruptcy/ and if payments are not in your plans, then you will want to check out https://upsolve.org/learn/chapter-7-bankruptcy-income-limits/
Upsolve Community Member
There's a lot here that may depend on your personal circumstances- but you might find this a helpful place to start: https://upsolve.org/learn/traffic-tickets-and-bankruptcy/
Upsolve Community Member
This may also be useful! https://upsolve.org/learn/irs-debt-and-bankruptcy/
Upsolve Community Member
I already paid for my ticket. Im sad. But my question can I keep my savings 5k?
Upsolve Community Member
Faisal, checkout https://upsolve.org/learn/trustee-review-bank-statements/ ---- Did you pass the https://upsolve.org/learn/chapter-7-means-test-calculator/ with the $5K in savings included?
Upsolve Community Member
Thanks. This an extremely important part of the process. 5k is all what I have in addition to 2k worth car and some laptops. I am receiving government benefits(food stamps). Doesnt this fact alone mean I pass the means test?
Upsolve Community Member
It doesn't quite work like that- you'd still need to fill out the Means Test form. You can determine how the Means Test applies to you here: https://upsolve.org/learn/chapter-7-means-test-calculator/
Upsolve Community Member
Very useful article! Im not sure why do I need to calculate my monthly expenses if I make below the household income limit? It isnt obvious to the court that one doesnt have any disposal income if make below the annual income?
Upsolve Community Member
That's just not how it works, unfortunately. The rules for this are set by bankruptcy law.
Upsolve Community Member
2022-01-27
The IRS is still taking money out of my check and humana shows I still have a balance. Do the creditors need to be notified with certified letters? Are there any articles on how to handle creditors that don't honor the chapter 7 decisions?
Community Replies:
Upsolve Community Member
Hi Susan, Here is an article to give you some guidance on this topic: https://upsolve.org/learn/irs-debt-and-bankruptcy/
Upsolve Community Member
Was this a dischargeable tax debt, Susan? That article Erin shared can help you determine whether or not it's dischargeable in bankruptcy
Upsolve Community Member
According to that document, my debt should be discharged. The gentleman from IRS said it is relative to state laws. The substitute tax return was done for 2008. The tax and return were much older than three years. I spent a whole year trying to get a copy of that tax return. They cashed my check and never sent the return. Then they sent me documentation that there was no return and sent my fee back to get my old transaction of a return. Now I'm worried the debt was in an unsecured debt and not a secured debt.
Upsolve Community Member
This might help, too! https://upsolve.org/learn/what-is-secured-debt-in-bankruptcy/
Upsolve Community Member
IRS returned the money they had taken out.
Upsolve Community Member
I logged bak into my Pacer account and there is a new entry. Can you tell me what this means? Trustee Certification of Services Rendered Under 11 U.S.C. Section
330(e). I rendered the following service in the case and am eligible for
payment under 11 U.S.C. Section 330(e): Filed a Report of No
Distribution. I declare under penalty of perjury that the foregoing is
true and correct. (Executed on 1/28/2022). (RE: related document(s)
Meeting of Creditors Held and Concluded on 1/21/2022. Chapter 7
Trustee's Report of No Distribution: I, Diane Carter, having been
appointed trustee of the estate of the above-named debtor(s), report
that I have neither received any property nor paid any money on account
of this estate; that I have made a diligent inquiry into the financial
affairs of the debtor(s) and the location of the property belonging to
the estate; and that there is no property available for distribution
from the estate over and above that exempted by law. Pursuant to Fed R
Bank P 5009, I hereby certify that the estate of the above-named
debtor(s) has been fully administered. I request that I be discharged
from any further duties as trustee. Key information about this case as
reported in schedules filed by the debtor(s) or otherwise found in the
case record: This case was pending for 1 months. Assets Abandoned
(without deducting any secured claims): $ 1627.69, Assets Exempt: Not
Available, Claims Scheduled: $ 200990.67, Claims Asserted: Not
Applicable, Claims scheduled to be discharged without payment (without
deducting the value of collateral or debts excepted from discharge): $
200990.67.). Filed by Diane Carter (Carter, Diane) (Entered: 01/28/2022)
Upsolve Community Member
This should help! https://upsolve.org/learn/report-of-no-distribution/
Upsolve Community Member
2022-01-18
If I do a voluntary dismissal(chapt 13), what happens to: My car in the current chapt 13 plan. How does it get reported to my credit profile? How long will the chapt 13 stay on my credit or does it go away? I understand I lose the stay for the previous debts.
Community Replies:
Upsolve Community Member
Hi Eric! Hopefully, this article on https://upsolve.org/learn/how-to-file-chapter-13-bankruptcy/ will answer your questions! Good luck ahead! :-)
Upsolve Community Member
Mark, I’ve already filed. Do you have any ideas about my questions?
Upsolve Community Member
Upsolve is a free service for low-income families wishing to file Chapter 7 without an attorney. I can't answer your questions but I can point you to info: https://upsolve.org/learn/what-happens-when-a-chapter-13-case-is-dismissed/
Upsolve Community Member
Did your Chapter 13 payment agreement https://upsolve.org/learn/chapter-13-cramdown/ the value of your car? Depending on circumstances and the lender, a loan has the potential to revert to a pre-filing state. (Were you at risk of repossession before filing?) Regarding your credit report, the article https://upsolve.org/learn/discharge-vs-dismissal/ discusses bankruptcy dismissals and credit reporting.
Upsolve Community Member
One thing that catches many by surprise is that your car loan payment is likely "late" because the Chapter 13 trustee pays according to their schedule, not the monthly due dates on the creditor's statement.
Upsolve Community Member
2022-01-12
I'm due for a foreclosure auction on 1/22. My home loan was a Hard Money loan, which made it a commercial loan. So I was req'd to put the house into an LLC. (My parents died and it was left to me....I grew up here) This is the 3rd scheduled auction. The first 2 I stopped with (now dismissed) Ch 13's. The first one the contracted buyer fell through, and it was around the time I was to submit my plan. The 2nd one, my income would not have allowed for it to be accepted. I know the 3rd time doesn't give me an automatic stay, is there anything I can do to prove that I deserve a stay?
Community Replies:
Upsolve Community Member
The court looks at whether anything in the filer's financial situation has substantially changed since the last filing.
Upsolve Community Member
There may also be helpful information in this article for you, Rather: https://upsolve.org/learn/what-happens-when-a-chapter-13-case-is-dismissed/ Please let us know if you have any other questions!
Upsolve Community Member
In what state do you live?? Try looking for a hard money loan
Upsolve Community Member
My social media campaign generated help from a gentleman in FL. He called me and asked if he could call around for me. And last week a Realtor/Hard Money Lender/Wholesaler (😳) called me. He's local and he has found an investor to purchase and leaseback. The lender approved and we are waiting for the judge to okay the motion. The motion was filed right before court closed. So as of right now we are all waiting on pins and needles bc tomorrow is the last day. Hopefully the judge will approve and cancel the auction for Saturday. 🙏🏾🤞🏾
Upsolve Community Member
But thanks everyone. Oh and I now have a RE atty. She's examining the entire mortgage bc the deed is still in my Dad's estate. And I never received permission to put the house in an LLC.
Upsolve Community Member
Can you please share the hard money lender?
Community Replies:
Upsolve Community Member
Hi Karen! I love the responsiblilty shown in adjusting your vehicle expense! Yay! Perhaps this article in the Learning Center will provide some guidance: https://upsolve.org/learn/can-i-transfer-property-before-bankruptcy/ You are on the right path and I wish you the best! :-)
Upsolve Community Member
If you're wondering if you can keep your new used car, I recommend reading the Upsolve article https://upsolve.org/learn/can-keep-car-file-bankruptcy/