Types of Claims
Each creditor named in your case must file a proof of claim within the allowed time in order to be paid. The claims fall into three major categories:

•	Secured debt - creditor paid 100% of the value of the security plus interest (12% on cars, 10% on mortgage arrearage, & 8% on secured IRS) 

•	Priority debt - paid 100% w/o interest

•	Unsecured debt - paid to the best of your ability with no interest. Any balance remaining at the completion of your plan is discharged (legally forgiven).

Occasionally there is a special sub-class of debt that includes a co-signer or guarantor.

SPECIAL NOTE: Debts such as student loans, back child support or alimony & fines due to injury while “under the influence”, survive the plan. You are responsible for paying any such debts after the completion of your plan.

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Remember to...
CYA

(Call Your Attorney)

(	If you want to sell anything of value (house, car, boat, etc.)
(	If you want to incur debt
(	If you receive a “lift stay” or any legal papers by mail or hand delivery
(	If you change jobs
(	If you are unable to make your plan payment
(	If you have any legal question concerning your case. (The Trustee, including his staff, cannot give you legal advice.)
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I.R.S.

•	You must timely file your taxes each year.

•	If you owe IRS in the plan & are due a refund, you will not receive the refund. It will be applied to your IRS debt & the Trustee’s office will be notified to reduce the balance owed.

•	If you do not owe IRS in your plan & are due a refund, you will receive it. It will not go to the Trustee. You will not, however, be eligible for an electronic refund. 

•	Anything to do with your taxes will be handled by the Special Procedures Dept. 

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Type & Length of Plan

100% Plan - Pays all filed claims in full as designated in the plan. Is considered a completed plan whenever this is accomplished, within five years.

Base Plan - Pays 100% on secured & priority debts & the highest percentage possible on unsecured debts. Plan length is five years.

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Things to Remember!

·	Establish a “File 13”... a real one!  Keep all paperwork pertaining to your plan in one secure place.

·	Mail or fax written notification of any change of address. Also, notify your attorney. 

·	Notify both the Trustee & your attorney if you change jobs.

·	Maintain insurance on home & vehicles, make timely payments on your home, file taxes on time & make plan payments on time.

·	If you are making mortgage payments on your home, contact your mortgage company annually, or have your attorney do so, to make sure there have been no changes in the payment or escrow amount due.

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You have made a responsible choice for dealing with a difficult situation. Personal pride is one reward, and the Trustee’s “Fresh Start Program” is another. 

Upon the successful completion of your plan, you will be:

·	offered assistance in correcting your credit report 

·	given information pertaining to credit re-establish-ment. The higher your percentage of repayment (75-100% is preferred) the greater your options for obtaining reasonable credit at reasonable rates.

given all needed paperwork to bring closure to your chapter 13 plan & begin you your Fresh Sta