How Much Will My Monthly Chapter 13 Payment Be?
You may assume that the hardest part of your bankruptcy case is preparing the petition. However, you may be expected to be an active participant in your case proceedings throughout, meaning you must behave and act in a certain way at all times. In other words, you do not want to do anything that may jeopardize your opportunity to obtain financial relief at the case’s close. With that to consider, please continue reading to learn what you cannot do after submitting your bankruptcy petition and how an experienced Rockland County Chapter 7 bankruptcy attorney at The Law Offices of Allen A. Kolber, Esq., P.C. can help curb these potential errors.
What Can I Not Do After Filing for Chapter 7 Bankruptcy?
When you file your initial Chapter 7 bankruptcy petition with the bankruptcy court, you are required to provide:
- A bankruptcy schedule
- Statement of financial affairs
- All other relevant financial documents
With this, you must not fail to file these documents or otherwise complete them incorrectly. At the same time, if there is a significant shift in your financial situation during your case proceedings, which may be reflected in these financial documents, you must not fail to provide your appointed bankruptcy trustee with these updated versions.
In addition, you are required to complete a debtor education course, and the certification must be submitted to the court within 60 days of the first set date for your meeting of creditors, not when the case ends. During the course, you can learn important information to help you remain financially responsible to avoid falling back into debt and pursuing bankruptcy again. You must attend these sessions; failure to do so can result in the dismissal of your case without debt discharge.
Money That Arrives After You File May Not Be Yours
Three types of financial windfalls belong to the bankruptcy estate if your right to the assets arises within 180 days of filing. This is true, even though the case has already started. This includes:
- An inheritance or bequest
- Property settlement or awards from a divorce
- Life insurance proceeds or death benefits
Ultimately, what the courts will look at is when your right to the asset arose, not when the money was in your possession. For example, if you have a relative pass away four months after you file, you are obligated to inform your attorney and trustee of any inheritance you are the beneficiary of. Spending the money turns an innocent windfall into evidence in a concealment allegation.
Two Numbers Worth Knowing Before You Use a Card
Running up a balance shortly before filing is treated with suspicion, and the Code sets specific thresholds where the creditor gets a presumption in its favor rather than having to prove anything.
- More than $900 owed to a single creditor for luxury goods or services bought within 90 days of filing
- More than $1,250 in cash advances taken within 70 days of filing
These figures took effect in April 2025 and hold until March 2028. Below them, a creditor can still object, but it has to do the work of proving you never intended to pay.
What Happens if I am Found Making Any of These Mistakes?
First of all, if your bankruptcy trustee or the court unearths that there are missing or outdated financial documents from your case, they may jump to the conclusion that you are committing bankruptcy fraud. That is, they may believe that you intentionally hid assets that your trustee would have otherwise taken, liquidated, and used to pay off your outstanding creditors. With this, they may dismiss your case effective immediately. What’s worse, though, they may impose criminal charges and hefty fines against you.
Secondly, if you are unable to produce a certificate of completion from your debtor education course, the court may decide not to issue your bankruptcy discharge. Meaning that you may be expected to pay off the outstanding debts that would have otherwise been eliminated from your immediate financial responsibility at your case’s close. Ultimately, this may make your financial situation not much better than when you started the bankruptcy process. Only now, you have a record of bankruptcy on your credit report for the next 10 years.
Contact an Experienced New York Bankruptcy Firm
Before you take any further initiative with your Chapter 7 bankruptcy case, we urge you to consult a skilled Rockland County bankruptcy attorney. Most definitely, the team at The Law Offices of Allen A. Kolber, Esq., P.C. is eager to work with you. Contact us today to schedule a consultation with our firm.
