A Chapter 13 reorganization plan spells out to the court exactly how much you’re going to pay to the bankruptcy trustee, for how long, and to whom the money will be distributed. The plan is actually created by your attorney but the plan must be consistent with the requirements of the bankruptcy code. Otherwise, the trustee will object and the judge will deny confirmation of the plan. In actuality, the trustee will probably object to nearly any plan around 90% of the time — it is how the trustee justifies his or her existence and it’s how the trustee tries to maximize the amount of money your creditors receive.
The Chapter 13 plan might provide for a cure of your past-due mortgage payments so you can keep your house. It might provide for taxes due to the IRS in order to prevent a tax levy against your paycheck. It might provide for a “cram-down” of what is owed on your car — that is to say, you might get to keep your car while only paying part of what is owed on the car. Sometimes, a Chapter 13 plan pays past-due child support so that your wages aren’t garnished for support.
People often are curious about what a Chapter 13 plan looks like. Here is an example:
—————————————
United States Bankruptcy Court
District of Colorado
CHAPTER 13 PLAN
INCLUDING VALUATION OF COLLATERAL
AND CLASSIFICATION OF CLAIMS
CHAPTER 13 PLAN: This chapter 13 plan dated February 13, 2012 supersedes all previously filed plans.
NOTICE TO CREDITORS: THIS PLAN MAY MODIFY YOUR RIGHTS. If you oppose any provision of the plan you must file
an objection with the bankruptcy court by the deadline fixed by the court. (Applicable deadlines given by separate notice.) If you do
not file a timely objection, you will be deemed to have accepted the terms of the plan, which may be confirmed without further notice
or hearing.
MOTIONS FOR VALUATION OF COLLATERAL AND DETERMINATION OF SECURED STATUS UNDER 11 U.S.C. §
506 (Check any applicable box(s)):
This plan contains a motion for valuation of personal property collateral and determination of secured status under 11 U.S.C. §
506.
The debtor is requesting a valuation of real property collateral and determination of secured status under 11 U.S.C. § 506 by
separate motion filed contemporaneously with this plan.
or
This plan contains a provision modifying the value of real property collateral under 11 U.S.C. § 506 in accordance with a
previously filed motion or a prior order of this Court. List the date of any previously filed motions, the status of the motions (granted,
objections pending, objections resolved) and any corresponding docket numbers:
SECURED CLAIMS SUBJECT TO VALUATION OF COLLATERAL AND DETERMINATION OF SECURED STATUS
UNDER 11 U.S.C. § 506 (additional detail must be provided at Part IV of the plan):
Name of Creditor Description of Collateral (pursuant to L.B.R. 3012-1)
NYCB Mortgage Company, LLC Debtors’ residence: 2999 E 108th Dr Northglen, CO
I. BACKGROUND INFORMATION
A. Prior bankruptcies pending within one year of the petition date for this case:
Case Number & Chapter Discharge or Dismissal / Conversion Date
None
B. The debtor(s): is eligible for a discharge; or
is not eligible for a discharge and is not seeking a discharge.
C. Prior states of domicile:within 730 days N/A
within 910 days N/A.
The debtor is claiming exemptions available in the state of Colorado or federal exemptions.
D. The debtor owes or anticipates owing a Domestic Support Obligation as defined in 11 U.S.C. § 101(14A). Notice will/should be
provided to these parties in interest:
1. Spouse/Parent N/A
2. Government N/A
3. Assignee or other N/A
E. The debtor has provided the Trustee with the address and phone number of the Domestic Support Obligation recipient or
cannot provide the address or phone number because it/they is/are not available.
F. The current monthly income of the debtor, as reported on Interim Form B22C is: below equal to or above the applicable
median income.
II. PLAN ANALYSIS
A. Total Debt Provided for under the Plan and Administrative Expenses
1. Total Priority Claims (Class One)
a. Unpaid attorney’s fees $ 1,800
(Total attorney’s fees are estimated to be $ 3,300 of which $ 1,500 has been prepaid.)
b. Unpaid attorney’s costs (estimate) $ 0
c. Total Taxes $ 0
Federal: $ 0 ; State: $ 0 .
d. Other $ 0
2. Total of payments to cure defaults (Class Two) $ 6,000
3. Total payment on secured claims (Class Three) $ 0
4. Total of payments on unsecured claims (Class Four) $ 78,600
5. Sub-Total $ 86,400
6. Total trustee’s compensation (10% of debtor’s payments) $ 9,600
7. Total debt and administrative expenses $ 96,000
B. Reconciliation with Chapter 7
THE NET PROPERTY VALUES SET FORTH BELOW ARE LIQUIDATION VALUES RATHER THAN REPLACEMENT
VALUES. THE REPLACEMENT VALUES MAY APPEAR IN CLASS THREE OF THE PLAN.
1. Assets available to Class Four unsecured creditors if Chapter 7 filed
a. Value of debtor’s interest in non-exempt property $ 2,967
Property Value
Less costs
of sale Less Liens
x Debtor’s
Interest
Less
Exemptions = Net Value
Home Depot stock 2,135 320 0 100% 0 1,815
First Bank saving account 197 0 0 100% 0 197
Firstbank, two checking accounts 3,400 0 0 100% 2,550 850
Camping tent and 3 sleeping bags 100 15 0 100% 0 85
Bellco savings accounts x 2 20 0 0 100% 0 20
b. Plus: value of property recoverable under avoiding powers $ 8,405
c. Less: estimated Chapter 7 administrative expense $ 742
d. Less: amounts payable to priority creditors other than costs of administration $ 0
e. Equals: estimated amount payable to Class Four creditors if Chapter 7 filed $ 10,630
(if negative, enter zero)
2. Estimated payment to Class Four unsecured creditors under the Chapter 13 Plan $ 78,600
plus any funds recovered from “other property” described in Section II.A.3 below.
III. PROPERTIES AND FUTURE EARNINGS SUBJECT TO THE SUPERVISION AND CONTROL OF THE TRUSTEE
A. Debtor submits to the supervision and control of the Trustee all or such portion of the debtor’s future earnings or other future
income as is necessary for the execution of the Plan, including:
1. Future earnings of $ 1,600 per month which shall be paid to the trustee for a period of approximately 60 months, beginning
12/20/2011 .
Amount Number of Months Total
1,600 60 96,000
One time payment and date
2. Amounts for the payment of Class Five post-petition claims included in above $ 0
3. Other property (specify): None
AT THE TIME THE FINAL PLAN PAYMENT IS SUBMITTED TO THE TRUSTEE, THE DEBTOR SHALL FILE WITH THE
COURT THE CERTIFICATION REGARDING DOMESTIC SUPPORT OBLIGATIONS REQUIRED BY 11 U.S.C. § 1328(a)
AND, IF NOT ALREADY FILED, INTERIM FORM B23 REGARDING COMPLETION OF FINANCIAL MANAGEMENT
INSTRUCTION REQUIRED BY 11 U.S.C. § 1328(g)(1).
B. Debtor agrees to make payments under the Plan as follows:
DIRECT PAYMENT: From Debtor to Trustee
VOLUNTARY WAGE ASSIGNMENT TO EMPLOYER:
DIRECT PAYMENT: From Joint Debtor to Trustee
VOLUNTARY WAGE ASSIGNMENT TO EMPLOYER:
IV. CLASSIFICATION AND TREATMENT OF CLAIMS
CREDITOR RIGHTS MAY BE AFFECTED. A WRITTEN OBJECTION MUST BE FILED IN ORDER TO CONTEST THE
TERMS OF THIS PLAN. CREDITORS OTHER THAN THOSE IN CLASS TWO A AND CLASS THREE MUST FILE TIMELY
PROOFS OF CLAIM IN ORDER TO RECEIVE THE APPLICABLE PAYMENTS.
A. Class One – Claims entitled to priority under 11 U.S.C. § 507. Unless other provision is made in paragraph V.(C), each creditor
in Class One shall be paid in full in deferred cash payments prior to the commencement of distributions to any other class (except that
the payments to the Trustee shall be made by deduction from each payment made by the debtor to the Trustee) as follows:
1. Allowed administrative expenses
(a) Trustee’s compensation of (10% of amounts paid by debtor under Plan) $ 9,600
(b) Attorney’s Fees (estimated and subject to allowance) $ 1,800
(c) Attorney’s Costs (estimated and subject to allowance) $ 0
2. Other priority claims to be paid in the order of distribution provided by 11 U.S.C. § 507 (if none, indicate) $ 0
a. Domestic Support Obligations: A proof of claim must be timely filed in order for the Trustee to distribute amounts
provided by the plan.
Priority support arrearage: Debtor owes past due support to in
the total amount of $ that will be paid as follows:
Distributed by the Trustee pursuant to the terms of the Plan; or
Debtor is making monthly payments via a wage order or directly (reflected on Schedule I or J) in the amount of
$ to . Of that monthly amount, $ is for
current support payments and $ is to pay the arrearage.
Other: For the duration of the plan, during the anniversary month of confirmation, the debtor shall file with the Court
and submit to the Trustee an update of the required information regarding Domestic Support Obligations and the status
of required payments.
b. Federal Taxes $ 0
c. State Taxes $ 0
d. Other Taxes (describe):
None $ 0
e. Other Class One Claims (if any) (describe):
None $ 0
B. Class Two – Defaults
1. Class Two A (if none, indicate) – Claims set forth below are secured only by an interest in real property that is the debtor’s
principal residence located at Debtors’ residence: 2999 E 108th Dr Northglen, CO. Defaults shall be cured and regular payments
shall be made:
None
Creditor
Total
Default
Amount to
be Cured1
Interest
Rate
Total
Amount to
Cure
Arrearage
No. of
Months to
Cure
Regular
Payment per
month to be
Made
Directly to
Creditor
Date of
First
Payment
GMAC Mortgage 6,000 0.00% 6,000 5 2,025 12/01/2011
2. Class Two B (if none, indicate) – Pursuant to 11 U.S.C. § 1322(b)(5), secured (other than claims secured only by an interest in real
property that is the debtor’s principal residence) or unsecured claims set forth below on which the last payment is due after the date on
1 The lesser of this amount or the amount specified in the Proof of Claim
which the final payment under the Plan is due. Defaults shall be cured and regular payments shall be made:
None
Creditor Collateral
Total
Default
Amount to
be Cured2
Interest
Rate
Total
Amount to
Cure
Arrearage
No. of
Months to
Cure
Regular
Payment per
month to be
Made
Directly to
Creditor
Date of
First
Payment
3. Class Two C – Executory contracts and unexpired leases. Executory contracts and unexpired leases are rejected, except the
following which are assumed:
None
Other Party to Lease or Contract
Property, if any, Subject to the Contract
or Lease
Total
Amount to
Cure, if any
No. of
Months to
Cure
Regular
Monthly
Payment
Made
Directly to
Creditor
Date of
Payment
IN THE EVENT THAT DEBTOR REJECTS THE LEASE OR CONTRACT, CREDITOR SHALL FILE A PROOF OF
CLAIM OR AMENDED PROOF OF CLAIM REFLECTING THE REJECTION OF THE LEASE OR CONTRACT
WITHIN 30 DAYS OF THE ENTRY OF THE ORDER CONFIRMING THIS PLAN, FAILING WHICH THE CLAIM MAY
BE BARRED.
C. Class Three – All other allowed secured claims (other than those designated in Classes Two A and Two B above) shall be
divided into separate classes to which 11 U.S.C. § 506 shall or shall not apply as follows:
1. Secured claims subject to 11 U.S.C. § 506 (Real Property): Real Property: In accordance with FED. R. BANKR. P. 3012, 7004
and L.B.R. 3012-1, the debtor has filed and served a separate motion for valuation of collateral and determination of secured status
under 11 U.S.C. § 506 as to the real property and claims listed on page 1 of this plan and below. The debtor is requesting an order that
the value of the collateral is zero ($0) and the creditor’s claim is unsecured. The plan is subject to the court’s order on the debtor’s
motion. If the court grants the debtor’s motion, the creditor will have an unsecured claim in either the amount of the debt as listed in
the debtor’s schedules or on any allowed proof of claim filed by the creditor (whichever is greater). The creditors listed on page 1 and
below shall retain the liens securing their claims until discharge under 11 U.S.C. § 1328 or payment in full.
Name of Creditor
Description of Collateral
(pursuant to L.B.R. 3012-1)
Amount of
Debt as
Scheduled
Proof of
Claim
amount, if
any
NYCB Mortgage Company, LLC Debtors’ residence: 2999 E 108th Dr Northglen, 62,887
2. Secured claims subject to 11 U.S.C. § 506 (Personal Property): The debtor moves the court, through this chapter 13 plan, for a
valuation of collateral and determination of secured status under 11 U.S.C. § 506 regarding the personal property and claims below.
The following creditors shall retain the liens securing their claims until discharge under 11 U.S.C. § 1328 or payment in full under
nonbankruptcy law, and they shall be paid the amount specified which represents the lesser of: (a) the value of their interest in
collateral or (b) the remaining balance payable on the debt over the period required to pay the sum in full. Any remaining portion of
the allowed claim shall be treated as a general unsecured claim. Any secured claim with a value of $0 shall be treated as a general
unsecured claim.
Creditor Description of Collateral
Specify
Treatment
(select a or
b in ¶ 2
above)
Debtor’s
Contention
of Value
(replacement
value)
Amount of
Debt as
Scheduled
Interest
Rate
Total
Amount
Payable
None
3. Secured claims to which 11 U.S. C. § 506 shall not apply (personal property). The following creditors shall retain the liens
securing their claims, and they shall be paid the amount specified which represents the remaining balance payable on the debt over the
period required to pay the sum in full:
Creditor Description of Collateral Amount of Interest Total
2 The lesser of this amount or the amount specified in the Proof of Claim
Debt as
Scheduled
Rate Amount
Payable
None
4. Property being surrendered: The debtor surrenders the following property securing an allowed secured claim to the holder of
such claim:
Creditor Property
Anticipated Date of
Surrender
Starwood Vacation Ownership Timeshare in Orlando, FL 12/01/2011
Welk Resort Group Timeshare in Escondido, CA 12/01/2011
Relief from the automatic stay to permit enforcement of the liens encumbering surrendered property shall be deemed granted by the
Court at the time of confirmation of this Plan. With respect to property surrendered, no distribution on the creditor’s claim shall be
made unless that creditor files a proof of claim or an amended proof of claim to take into account the surrender of the property.
5. Adequate Protection: The following creditor(s) shall receive payments in the nature of adequate protection pursuant to L.B.R.
2083-1, if applicable, or upon confirmation of the plan as follows:
Creditor Collateral
Adequate
Protection
Payment Paid
Through the
Trustee
Adequate
Protection
Payment Paid
By the
Debtor(s)
Total Payable
Monthly in
Equal
Periodic
Payments
None
D. Class Four – Allowed unsecured claims not otherwise referred to in the Plan. Class Four Claims are provided for in an amount
not less than the greater of:
1. The amount necessary to meet the best interests of creditors pursuant to 11 U.S.C. § 1325(a)(4) as set forth in Part II; or
2. Total disposable income for the applicable commitment period defined by 11 U.S.C. § 1325(b)(1)-(4).
The monthly disposable income of $ 1,341 has been calculated on Form B22C (Chapter 13). Total disposable income is $ 80,488
which is the product of monthly disposable income of $ 1,341 times the applicable commitment period of 60 months.
a. Class Four claims are of one class and shall be paid pro rata the sum of $ 78,600 and shall be paid all funds remaining after
payment by the Trustee of all prior classes; or
A timely filed claim, found by the Court to be non-dischargeable pursuant to 11 U.S.C. § 523(a)(2), (4), or (6), will share pro-rata
in the distribution to Class Four. Collection of the balance is stayed until the case is dismissed, converted to a Chapter 7 or
discharge enters, unless ordered otherwise.
b. Class Four claims are divided into more than one class as follows:
E. Class Five (if none, indicate) – Post-petition claims allowed under 11 U.S.C. § 1305. Post-petition claims allowed under 11
U.S.C. § 1305 shall be paid as follows:
None
V. OTHER PROVISIONS
A. Payment will be made directly to the creditor by the Debtor(s) on the following claims:
Creditor Collateral, if any
Monthly
Payment
Amount
No. of
Months to
Payoff
Vw Credit Inc 2012 VW Jetta 484 60
B. The effective date of this Plan shall be the date of entry of the Order of Confirmation.
C. Order of Distribution:
1. The amounts to be paid to the Class One creditors shall be paid in full, except that the Chapter 13 Trustee’s fee shall be paid up
to, but not more than, the amount accrued on actual payments made to date. After payment of the Class One creditors, the amounts to
be paid to cure the defaults of the Class Two A, Class Two B and Class Two C creditors shall be paid in full before distributions to
creditors in Classes Three, Four, and Five (strike any portion of this sentence which is not applicable). The amounts to be paid to the
Class Three creditors shall be paid in full before distributions to creditors in Classes Four and Five. Distributions under the plan to
unsecured creditors will only be made to creditors whose claims are allowed and are timely filed pursuant to Fed. R. Bankr. P. 3002
and 3004 and after payments are made to Classes One, Two A, Two B, Two C and Three above in the manner specified in Section IV.
2. Distributions to classes of creditors shall be in accordance with the order set forth above, except:
D. Motions to Void Liens under 11 U.S.C. § 522(f). In accordance with Fed. R. Bankr. P. 4003(d), the debtor intends to file or has
filed, by separate motion served in accordance with Fed. R. Bankr. P. 7004, a motion to void lien pursuant to 11 U.S.C. § 522(f) as to
the secured creditors listed below:
Creditor Collateral, if any
Date Motion to
Void Lien Filed
Date of Order
Granting Motion
or Pending
None
E. Student Loans:
No student loans
Student loans are to be treated as an unsecured Class Four claim or as follows:
F. Restitution:
No restitution owed
Debtor owes restitution in the total amount of $ which is paid directly to
in the amount of $ per month for a period of months.
Debtor owes restitution to be paid as follows:
G. Other (list all additional provisions here):
VI. REVESTMENT OF PROPERTY IN DEBTOR
All Property of the estate shall vest in the debtor at the time of confirmation of this Plan.
VII. INSURANCE
Insurance in an amount to protect liens of creditors holding secured claims is currently in effect and will will not (check one) be
obtained and kept in force throughout the period of the Plan.
Applicable policies will be endorsed to provide a clause making the applicable creditor a loss payee of the policy.
VIII. POST-CONFIRMATION MODIFICATION
The debtor must file and serve upon all parties in interest a modified plan which will provide for allowed priority and allowed secured
claims which were not filed and/or liquidated at the time of confirmation. The value of property to satisfy 11 U.S.C. § 1325(a)(4) may
be increased or reduced with the modification if appropriate. The modification will be filed no later than one year after the petition
date. Failure of the debtor to file the modification may be grounds for dismissal.
Dated: February 13, 2012
/s/ William A Morris
Signature of Attorney
William A Morris 21452
Williams A. Morris PC
Morris Law Office
1775 Sherman Street Suite 1650
Denver, CO 80203
(303) 691-9004
WAMorris@WAMorrisLaw.com