Chapter 13 Bankruptcy Court

Bankruptcy cases cannot be filed in the state courts according to the laws governing bankruptcy

. Each of the 94 federal judicial districts is rendered with the responsibility to oversee the matters related to the Chapter 13 bankruptcy. When a debtor files for bankruptcy with the federal bankruptcy court under Chapter 13, the Court issues an automatic stay, which is an automatic injunction preventing any collection procedure against the debtor.

The process under Chapter 13 bankruptcy begins with the debtor filing his petition to the federal bankruptcy court. The petition has to be made in the desired form that varies with each state. The court charges on the debtor a filing fee of $235 and the $39 administration costs if it has to sanction a hearing of the petition filed. Failure to pay the requisite fee within the time defined will result in the dismissal of the application. The fee charged by the court remains the same irrespective of the fact whether the petition is a single petition or a joint petition. The court may agree to an extension of the payment or may encourage payment in installments depending on the circumstances surrounding the case. But, the number of payment options typically does not extend beyond four, with the final settlement to be made not beyond 120 days of filing the petition under Chapter 13 bankruptcy. Where the situation demands so, the last installment can be extended, provided the last installment is paid no later than 180 days after filing the Chapter 13 petition.

The courts demand the debtor to submit the various schedules and forms applicable to the court in question. The original and a copy of these documents has to be presented in the order prescribed by the Chapter 13 bankruptcy court. It, then appoints a standing trustee to look into the matters and present the case with their objections or recommendations on the desired date. Depending on the case presented by the trustee, the court approves or rejects the bankruptcy petition. If it gets approved, the court will provide the trustee the task of overseeing the distribution of funds received from the debtor to the creditors. On the completion of the tenure, the court checks the audit report provided by the trustee and then gives the order for the discharge. The Court, in short, is the supreme authority under Chapter 13 bankruptcy.

by: Robert Anderson

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