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Chapter 13 of the Bankruptcy Code gives each debtor ("Debtor") important rights, such as the right to keep property that could otherwise be lost through repossession,
foreclosure or liquidation by a Chapter 7 Trustee. Chapter 13 also places burdens on Debtors, however, such as the burden of making complete and truthful disclosures of their financial situation and prompt payments as required by the Plan. It is important for Debtors who file a Chapter 13 bankruptcy case to understand their rights and
responsibilities to the court, the Chapter 13 Trustee and to creditors. Debtors are entitled to expect certain services to be performed by their attorneys, but Debtors
also have responsibilities to their attorneys. To assure that Debtors and their attorneys understand their rights and responsibilities in the Chapter 13 process, the judges
of the Bankruptcy Court for the Northern District of Georgia have approved this statement of rights and responsibilities of Debtors and their attorneys in Chapter
13 cases that include, but are not limited to the following, as each case's facts may require more of both Debtor and Debtor's attorney.
BEFORE THE CASE IS FILED EACH DEBTOR SHALL:
1. Discuss with the attorney the Debtor's objectives in filing the case.
2. Timely provide the attorney with full and accurate financial and other information, including properly documented proof of income.
THE ATTORNEY SHALL:
1. Personally counsel Debtor regarding the advisability of filing either a Chapter 13 or a Chapter 7 case, discuss with Debtor the procedures in both Chapters, as well as non-bankruptcy options, and answer Debtor's questions.
2. Personally explain to Debtor that the attorney is being engaged to represent Debtor on all matters arising in the case, and explain how and when the attorney's fees and
the trustee's fees are determined and paid.
3. Personally review with Debtor and obtain Debtor's signature on the completed petition, plan, as well as the Statement of Financial Affairs, Income and Expenses, and
other statements as well as the various schedules (the "Schedules"), and all amendments thereto, whether filed with the petition or later. The Schedules may be prepared initially with the help of clerical or paralegal staff of the attorney's office, but personal attention of the attorney is required for the review and signing by Debtor.
4. Timely prepare and file Debtor's petition, plan, Schedules and any other required pleading.
5. Explain to Debtor how, when and where to make all necessary payments, including both payments that must be made directly to creditors and payments that must be made to the Chapter 13 trustee ("Trustee"), with particular attention to housing and vehicle payments.
6. Advise Debtor of the need to maintain appropriate insurance especially for house and vehicle(s).
AFTER THE CASE IS FILED EACH DEBTOR SHALL:
1. Appear punctually at the meeting of creditors (also called the "341 meeting") with recent proof of income, a photo identification card, and proof of Social Security
number. Acceptable forms of proof of identification are; driver's license; government ID; state picture ID; student ID; U.S. passport; military ID; resident alien card.
Acceptable forms of proof of Social Security number are:
Social Security card; medical insurance card; pay stub; W-2 form; IRS form 1099; Social Security Administration Report. Debtor must be present both in time for check-in and when the case is called for the actual examination.
2. Make the required payments to Trustee and to such creditors as are being paid directly, or, if required payments cannot be made, to notify the attorney immediately.
3. Notify the attorney immediately of any change in Debtor's address or telephone number.
4. Inform the attorney immediately of any wage garnishments, liens or levies on assets that occur or continue after the filing of the case.
5. Contact the attorney immediately if Debtor loses employment, is "laid off' or furloughed from work or has any significant change in income; experiences any other
significant change in financial situation, including serious illness, personal injury, lottery winnings, or an inheritance.
6. Notify the attorney immediately if Debtor is sued or wishes to file a lawsuit, including divorce, matters regarding personal or property injury (including any worker's compensation matters), and any other matter in which Debtor is involved in a lawsuit or legal action outside this court.
7. Inform the attorney immediately if any tax refunds to which Debtor is entitled are seized or not received when due from the IRS or Georgia Department of Revenue.
8. Contact the attorney before buying, refinancing, or contracting to sell real property, and before entering into any loan agreement.
THE ATTORNEY SHALL:
1. Advise Debtor of the requirement to attend the meeting of creditors, and notify or remind Debtor of the date, time, and place of the meeting, in such detail as is
helpful or necessary to Debtor's appearance.
2. Inform Debtor that Debtor must be punctual and, in the case of a joint filing, that both spouses must appear at the same meeting.
3. Provide competent legal representation for Debtor at the meeting of creditors, appear in time for check-in and the actual examination and, unless excused by Trustee,
for the confirmation hearing.
4. If an attorney not employed by Debtor's attorney's law firm (a "contract" attorney) will be attending Debtor's 341 meeting or any court hearing, personally explain to Debtor in advance the role and identity of the contract attorney, obtain Debtor's written permission for the contract attorney to represent Debtor and provide the contract attorney with the file in sufficient time to review and discuss it with Debtor prior to such representation.
5. Timely submit to Trustee properly documented proof of income for each Debtor, including business reports for self-employed Debtors.
6. Timely respond to objections to plan confirmation, and where necessary, prepare, file and serve amended Schedules or an amended plan.
7. Timely prepare, file, and serve any necessary amended statements and Schedules and any change of address, in accordance with information provided by each Debtor.
8. Monitor all incoming case information (including, but not limited to, Order Confirming Plan, Notice of Intent to Pay Claims, and 6-month status reports) for accuracy and
completeness. Contact promptly Trustee or Debtor regarding any discrepancies.
9. Promptly respond to Debtor's questions through the term of the plan.
10. Timely prepare, file and serve necessary modifications to the plan after confirmation, including modifications to suspend, lower, or increase plan payments.
11. Prepare, file and serve necessary motions to buy or sell property and to incur debt.
12. On or before 60 days after the general bar date, certify the attorney has reviewed claims with Debtor, prepared, filed and served objections to improper or invalid claims and filed claims within 30 days after the bar date for creditors who fail to file claims when such failure will adversely affect Debtor's case or its successful completion and discharge or such failure will adversely affect Debtor after case completion and
discharge.
13. Timely confer with Debtor and respond to any motion to dismiss the case, such as for payment default, or unfeasibility, and to motions to increase the percentage
payment to unsecured creditors.
14. Timely confer with Debtor and respond to motions for relief from stay.
15. Timely prepare, file and serve appropriate motions to avoid liens.
16. Provide any other legal services necessary for the administration of the case. |
