During the Bankruptcy Process

New Means Testing Income Information Released Today

2013 October 31 by

The U.S. Trustee’s office released new median income figures for means testing today.  The following table provides median family income data for Colorado.   These median income figures will apply to all bankruptcy cases filed in Colorado after November 15, 2013.

Family Size
State 1 2 3 4
Colorado $50,242 $65,701 $71,138 $83,330
Add $8,100 for each individual in excess of 4.

To see information for all 50 states you can visit the US Trustee’s web site: http://www.justice.gov/ust/eo/bapcpa/20131115/bci_data/median_income_table.htm

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Questions you will be asked at a Chapter 13 Meeting of Creditors in Colorado

2013 August 30 by

I have attended hundreds of meetings with the bankruptcy trustee with my clients in both chapter 7 and chapter 13.   Clients are often very nervous and unsure about the meeting of creditors.    No one wants to appear in a public place to be questioned about their bankruptcy and finances.

The Meeting of Creditors is less like going to Court, and more like going to the DMV to register your case (in most cases).   However, the unknown is usually scary.

So … In order to serve my clients better and prepare them for the meeting I complied a list of general questions the Trustee will most likely you.  Hopefully they will be a help to you.

  1. The Trustee will swear you in.
  2. Please state your name, address.  (If there are 2 of you, the second person can just say “same address” if you live at the same address).
  3. Have you ever filed bankruptcy before?  If so, when and where?
  4. Are you still employed at XYZ and making the same you were when you filed bankruptcy?  (Please let the attorney know if you have changed jobs or received an increase/decrease in income since your bankruptcy was filed).
  5. Is there any other source of income besides your employment?
  6. How many people are in your household?
  7. Do you own any real estate?
  8. If so, how did you determine its value?  When did you purchase it?  How much did you purchase it for?  What do you think it would sell for today?
  9. If no, then: Have you ever owned any real estate in the last 4 years?  (Please let the attorney know if you have).
  10. Your Plan calls for X number of payments of $______ per month.  Have you made your first payment?  Will you be able to make your Plan payments on a regular and timely basis?
  11. Over what period of time were the bulk of your debts incurred?
  12. Have you listed all your debts?
  13. Have you listed all your assets?

After the attorney asks you the above questions, s/he will then ask if there are any creditors who wish to ask questions.  The only creditors who appear with any degree of regularity are the IRS, the Colorado Department of Revenue, ex-spouses who want a pound of flesh, and ex-business partners who have a bone to pick.  Most creditors never appear at these meetings.

In addition to these questions, the Trustee’s Attorney may ask some questions specifically relating to your bankruptcy.

ONLY ANSWER THE QUESTIONS THAT ARE ASKED.  Do not offer more information than what is requested.  If you are unsure what to answer you can ask your attorney, who will be sitting right next to you.

After you have been examined by the Trustee’s Attorney you are free to leave.

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Where to Send Mortgage Payments to Bank of America During a Chapter 13 Bankruptcy

2013 May 9 by

When a chapter 13 bankruptcy is filed, some lenders require mortgage payments to be sent to a special address.    Here is the payment address for Bank of America for people who are in Chapter 13:

Bank of America Retail Payment Service
PO Box 650070
Dallas TX 75265-0070

Or you can in mortgage payments by calling Bank of America’s bankruptcy department:    1-800-669-5224

Make sure to keep good records of all your mortgage payments during your bankruptcy and put your account number on all your payments.

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For Those of You With Active Cases

2011 April 8 by

There is a handy online service that allows you to access your court documents for only eight cents per page. Check out PACER — Public Access to Court Electronic Records at www.pacer.gov/psco/cgi-bin/regform.pl. Continue reading »