Frequently Asked Questions


I am a co-signer for a debt. Do I need to include the debt?

You can choose to have the debt included in your repayment plan, or if the cosigner desires to pay for the debt, you can specify that the Cosigner will pay for the debt directly. While you are in Chapter 13, the co-debtor is protected against collection efforts. Keep in mind that your Discharge only applies to your liability, not the Cosigner’s.

Who notifies the creditor and bill collection?

After your bankruptcy is filed, the Bankruptcy Court mails a notice to all the creditors you listed in your case. This usually takes 4-7 days.

Do I have to go to court?

Yes. Within about 30 to 45 days after you file the bankruptcy, you will have to attend an informal hearing conducted by the Trustee. At this hearing, the Trustee will ask questions to you under oath regarding your assets, income, and debts. Your attorney will be there with you and will help you prepare for the hearing. After this hearing you will normally not need to return to court unless specific problems cannot be resolved otherwise.

Who deals with the bill collectors during the bankruptcy?

Your attorney and the Chapter 13 Trustee deal with your creditors for you. You should refer all creditors and bill collectors to your attorney.

What if I forget to list a creditor on my bankruptcy papers?

You can add a creditor that was unintentionally omitted as long as your case is still open. The Court charges a small fee for the Amendment.

Can I reduce the interest rate on my loans?

Interest rates on secured debts, such as cars and furniture, are significantly reduced. Unsecured creditors, such as credit cards and loans, do not receive any interest in a chapter 13 case.