Important Information for Chapter 13 Clients

Plan Confirmation Process

A debtor who files for Chapter 13 bankruptcy is required to propose a plan to pay all of his or her disposable income (after necessary expenses) to creditors for a certain period of time.  This payment period must last for either three or five years, depending on the debtor’s income.  The debtor must send payments to the Office of the Chapter 13 Trustee, who will then disburse the payments to creditors.  A Chapter 13 debtor must begin making payments in accordance with his or her proposed plan within 30 days of filing bankruptcy.  If the debtor is employed, the Bankruptcy Court will issue an income withholding order to his or her employer.  An income withholding order instructs the employer to withhold the amount required for the plan payments from the debtor’s paycheck, and to send that money directly to the Chapter 13 Trustee.

For a payment plan to become effective, it must be approved by the Bankruptcy Court.  This process is known as “confirmation.”  A confirmation order binds the debtor and all creditors to the terms of the plan for the duration of the plan.  Failure by the debtor to make the payments required by the plan may result in dismissal of the bankruptcy case.  If the debtor completes all payments required by the plan, he or she may file a motion with the Bankruptcy Court to discharge any remaining debt.

Making Payments Under Chapter 13 Plan
Debtors must make all payments to the Chapter 13 Trustee by money order or cashiers checks. Personal checks will not be accepted. Please include your name and the case number for your bankruptcy with each payment, and keep copies of all receipts in case there are any errors or discrepancies that arise. The mailing address for payments to the Chapter 13 Trustee is as follows:

Hon Curtis C. Reding, Chapter 13 Trustee
P.O. Box 613108
Memphis TN 38101-3108

CLICK HERE to access the Chapter 13 Trustee’s official website.

Do Not Do the Following Without Speaking to an Attorney:

  • Do not try to apply for credit.

  • Do not liquidate or sell assets.

  • Do not attempt to modify your current mortgage.

  • Do not file or settle any lawsuits.

  • Do not use any property as collateral.

  • Do not pay off your Chapter 13 case.

​We also will need to know if you or your spouse file for divorce.