Life After Bankruptcy: I Received My Discharge, Now What?

For most people filing bankruptcy, they believe once they have received their order of discharge, and a document indicating their case has been closed, the bankruptcy is over.   You have received an Order of Discharge from the Courts.  Well, for the most part that is true, but the dance isn't over yet.  While I have completed everything that I have normally been hired to do, you should make sure credit reporting agencies are correctly reporting your information. Simply follow these steps:

1. 90-120 days after you receive the discharge, you should order a credit report from www.annualcreditreport.com. Consumers are entitled to a free credit report every year or when a negative decision is made by a creditor relying on a credit report. You can either download and print the report or have it mailed to you from each of the credit reporting agencies. If you are married and filed a joint bankruptcy, both of the spouses must request their own reports.
2. You will also want to get additional reports from Telecheck, Early Warning Services, and Chexsystem if you have ever had a problem with a checking account or overdrafts. These are the agencies that banks and credit unions rely on when the bank or credit union is making a decision about whether you can open an account with them.
3. For each of these reports, look for a line under each of the creditors that indicates whether a balance is due. That balance should read ZERO (unless it is a debt that is not dischargeable by law, like court ordered support, taxes, criminal fines or penalties). There may or may not be a line saying “Chapter 7 Bankruptcy” or “Chapter 13 Bankruptcy”. These statements refer to the reason why it is no longer a debt.
4. If any creditor is still listing a balance, take them to your attorney for review. There is a possibility a creditor is in violation of one or more laws.

What Does A Chapter 13 Cost?

It seems the #1 question from some clients is, how much will a Chapter 13 cost. I personally don't think an attorney should be picked based on price. The feedback I have received from people picking attorneys based on price is along the lines of “I guess I got what I paid for”. OK, enough of my soap box. As for attorney fees, within the Jacksonville Division of the Middle District in Florida, as in many jurisdictions, there are presumptively reasonable fees. Today, the Chapter 13 Trustee in the Jacksonville Division disseminated the following email:

“Please be advised that effective March 1, 2015, the Chapter 13 Trustee considers the presumptively reasonable fee for Mortgage Modification Mediation to be $1,850.00 and the presumptively reasonable fee for Chapter 13 Debtors engaged in and operating a business to be $4,000.00. Accordingly, no fee application is necessary for these services in these amounts and no objection will be filed. The increase for cases where a Chapter 13 Debtor is engaged in and operating a business is intended to compensate for the collection and production of profit and loss statements, bank accounts and tax returns for debtors engaged in businesses. This is not an increase for 1099 employees or contract employees who do not operate a business. All other presumptively reasonable fees regarding non business debtors, post confirmation services, administrative fees for collection and review of tax returns, and adversary proceeding fees shall remain unchanged.”

 
"The increase for cases where a Chapter 13 Debtor is engaged in and operating a business is intended to compensate for the collection and production of profit and loss statements, bank accounts and tax returns for debtors engaged in businesses."
If you are considering the filing of a Chapter 13 bankruptcy, you should contact a local bankruptcy attorney in your area for a consultation.