F.A.Q.

Pursuant to 11 U.S.C. 1302(b)(1) and 704(7) your Chapter 13 Trustee has a duty unless the court orders otherwise, to furnish such information concerning the estate and the estate’s administration as is requested by a party in interest.

You may review, without charge, your Chapter 13 Bankruptcy case information posted at the National Data Center. The National Data Center has been designed for individuals in a Chapter 13 bankruptcy. It puts your Chapter 13 case’s information at your fingertips twenty-four hours a day, seven days a week.

To login to the National Data Center website, please visit: www.ndc.org

See our Case Access page for more information.

The Trustee is a duly appointed Chapter 13 Standing Trustee for the District of Idaho, vested with the duties as set forth in 11 U.S.C. Section 1302(b), including the duty to furnish information concerning debtors’, estates and the administration of these estates. The Trustee maintains records and files in computerized form (the Information). The Trustee permits approved internet access to the user for the purpose of viewing and inspecting files of debtors for selected information regarding receipts and disbursements of funds to those who are a party in interest. Case information is published nightly to www.bankruptcylink.com.

The user will need to click on chapter 13 and then locate the Trustee by state and then put in their password.  The passwords are case sensitive and must be upper case. Attorneys and Creditors MUST complete and return the Trustee Online Access Agreement prior to approval.

Please fax a copy of the completed agreement to Kathleen A. McCallister, Chapter 13 Trustee at (208) 922-5599.

Authorized users may login with a valid account

Pursuant to the Income Tax Turnover Order entered when your case was filed, you are required to file and turn over to my office a complete copy of your signed and dated Federal and State Tax Returns along with copies of all your W-2s and/or 1099s.  We will need a complete copy of what you actually filed with the taxing authorities along with copies of any amendments, offset letters or adjustments.

This is an annual requirement during the term of the plan. A reminder letter will be mailed to you each year with an annual report of your case, but it is your responsibility to provide all tax documents to the Trustee’s office by April 30^th.

If at all possible, please DO NOT send tax returns by mail, fax or email. For security purposes, please ask your attorney to transmit the tax documents through EPIQ’s Document Delivery.

If your attorney is unable to send the tax documents through Document Delivery, please mail them to: Kathleen McCallister, Trustee, P.O. Box 1150, Meridian, ID 83680.

If they are password protected, you will need to provide the password as well.

DO NOT send tax returns with your payments to the Trustee’s lockbox in Tennessee. That address is for payments only.

In the event that you are not required by law to file tax returns, you must provide the Trustee’s office with a signed affidavit for each and every calendar year you are in the bankruptcy indicating the same, and stating the reason why you are not required to file, by the date indicated above.

If you file a tax extension, please forward a copy of the extension form to the Trustee’s office no later than April 30^th. As soon as the taxes are filed, a copy will need to be provided immediately to the Trustee’s office.

In most cases your tax refunds are property of the bankruptcy estate and must be turned over to the Trustee in addition to your monthly plan payments.  Failure to turnover these funds may also be grounds for dismissal.  Your tax refund checks received by the IRS and/or State should be mailed to our lockbox in Memphis, TN. You can also pay them through the tfsbillpay.com website.  For your protection you should not endorse the refund checks. Please contact your attorney with questions.

Be sure to write your case number on the refund check to ensure proper processing to your case.

Tax refunds do not cure missed plan payments, and are not counted towards the monthly payment that is due; it is in addition to the monthly plan payment.  Unless otherwise ordered, tax refunds are disposable income and will be distributed to the unsecured creditors in the case.

If you received your tax refund or it was intercepted by a third-party, please contact your attorney regarding the appropriate course of action for compliance with your plan. It is your responsibility to ensure tax refunds are sent to the Trustee. The Trustee will not attempt to collect these funds on your behalf. If your tax refund was intercepted by another organization, then documentation must be provided of this interception to the Trustee.

Please contact your attorney if you wish to retain a portion or all of your tax refunds. Please see the attached Application to Retain Tax Refunds.

For Debtor(s) attorneys:
If your client is requesting to retain their tax refunds, please HOLD the funds from going to the Trustee’s office in your account. Or advise your clients to HOLD the funds until the Trustee has approved the request AND the Order has been entered by the Court.

It is a good idea to check with your clients on the status of any Tax Refunds over $3,000 and remind them NOT to spend the funds absent Court order unless previously ordered by the court.

ALSO remind Debtor(s) NOT to withdraw from 401(k) or any other retirement or borrow from their retirement without Court approval.

Ask Debtor(s) to provide copies of Federal and State return. Review the returns and make a recommendation to the Debtor(s) on their request to retain tax refunds. Please see the Application to Retain Tax Refunds request form.

The Idaho Chapter 13 Plan provides: ‘During the Applicable Commitment Period, debtor(s) will turn over to trustee all net income tax refunds. At any time during the term of the plan, debtor(s) shall be entitled to use a tax refund to pay taxes due any other income taxing authority and/or reasonable tax return preparation fees, unless already budgeted. Upon a stipulation between the trustee and the debtor(s), approved by an order of the court, the debtor(s) may retain, in whole or in part, certain net income tax refunds during the term of the plan to facilitate the terms of this plan or to meet other reasonable and necessary needs of the debtor(s).’ 

The Idaho Plan also provides: ‘Debtor(s) will treat income tax refunds as follows:’ This is for any special provisions such as retaining a certain amount of tax refunds on an annual basis. If an amount is requested to be retained annually, it should also be on Schedule I.

Please contact your attorney immediately and please provide the following information regarding the totaled vehicle and/or other claim for loss:

• Date of loss
• The insurance agents contact information including name, email and phone number
• Lien holder – vehicle make/model/year
  • The lien holder / creditor will need to be notified
• Insurance claim number
• The amount of settlement
  • Including GAP insurance
• Copy of the Insurance Settlement Agreement
• Advise if a personal injury claim will be filed, and if not, why

If the car is claimed as a total loss during the Chapter 13 Plan, the proceeds may need to be turned over to the Trustee. If the Trustee receives auto insurance proceeds and the proceeds are to go directly to the secured creditor, the insurance company must obtain a guarantee of title directly from the creditor, not the Trustee. The Trustee may provide a Direction of Pay Letter to the Insurance Company.

If the Debtor(s) desire to keep funds above the amount which will pay off the secured Creditor, a motion to retain and/or an agreed order to keep such funds must be filed.

If Debtor(s) wish to seek substitution of collateral, please use the Application to Purchase paperwork located in the Form tab.

Debtor(s) may not incur any non-emergency consumer debt in excess of one thousand dollars ($1,000.00), including refinancing of mortgage debt, without written approval of the Trustee or a Court order.

Debtor(s) should first request approval to incur debt by submitting a written request to the trustee. See Forms tab for the Application to Purchase. Email the completed application and supporting documents to the email address included on the application.

Remember to attach a copy of the loan agreement, good faith estimate or other loan documentation as separate documents.

Debtor(s) attorneys should advise how the Debtor(s) will be able to fit the new debt payment into the budget. Submit draft amended Schedules I and J. Current proof of income may be needed as well.

If the Trustee approves the application, the draft amended schedules will need to be filed with the court before the Trustee’s office sends the approved/signed application over.

The application is not filed with the Court. If the application is approved by the Trustee, the Trustee’s office will send the application either to Debtor(s) attorney or the financing agent.

If the Debtor(s)’ application is not approved by the Trustee, the debtor may file a motion to incur the debt.

Pursuant to the terms of the plan, ‘The trustee, for cause, may defer not more than two monthly payments per calendar year and not more than four payments over the term of the plan, without further notice to parties or a hearing before the court.’

If you need to defer your payment(s) for one or two months, please contact your attorney. Your attorney will work directly with the Trustee’s office to seek approval. Be prepared to provide your attorney with the documentation/proof to support your request. If approved, your plan payments may need to be increased to repay those payment(s).

If the Trustee is paying mortgage payments through the plan, then plan payments should only be partially deferred to allow Trustee to continue to make such payments to Creditors.

If approved, a notice will be filed with the Court and you will receive a copy through the mail. If you are on a payroll deduction for your plan payments, please provide your attorney or the Trustee’s office with the contact information for your employer’s payroll department.

Please contact your attorney immediately.  Your attorney will work directly with the Trustee’s office to seek resolution. The Trustee wants to see all Debtors succeed with their Chapter 13 Bankruptcy, but is unable to provide legal advice. If you do not want your case dismissed, your attorney will need to file a response with the court within the time given on the motion.

For Debtor(s) attorneys:
When the Trustee’s office files a motion to dismiss a case (MTD) due to lack of payment, after the Debtor(s) make a full Plan payment after the MTD is filed, the Trustee may prepare an agreed order for repayment of said delinquency upon agreement with Debtor(s)’ attorney.

Please keep in mind that a response to the Trustee’s Motion to Dismiss should be filed with the court and set for hearing if you do not want the case dismissed.

THE TRUSTEE RESERVES THE RIGHT TO ASK FOR AN AMENDED BUDGET ON A CASE BY CASE BASIS.

Please contact your attorney immediately to update your address with the with the court.

Please contact your attorney to formally request a payoff from the Trustee’s office. Please allow up to five business days for a response.  To expedite the process, please indicate in your request the source of the funds to be used to pay off the plan.

Please let us know if you intend on the case paying off early. Unless it is 100% Case, a motion to pay off early may need to be filed, and/or an Agreed Order drafted by the Trustee’s office will need to be requested. Include the reasons why this case should be allowed to pay off early.

If the Debtor(s) are eligible for Discharge, it is necessary for the Financial Management Certificate to be filed with the clerk of the court. This can be filed at any time prior to the discharge date. However, we recommend filing the certificate as soon as it is available.

When a Plan has been completed, a final audit is performed. If all claims have been properly docketed and paid according to the Plan, the case is closed in the Chapter 13 Office. A letter will then be sent to the Debtor(s) letting them know they have successfully completed their Chapter 13 and explaining the closing process of their case.

If the payments have been over paid by the Debtor(s) a refund check will be issued back to the Debtor(s) after the funds have cleared.

If the Debtor is on an employer wage deduction, please make sure the Trustee’s office has a current address, fax number and/or email to send a letter to the employer.

If mortgage arrears are paid through the bankruptcy, the Trustee will file a Notice of Final Cure. Within 21 days, the mortgage company will file a Statement indicating whether it agrees that the Debtor has paid in full the amount required to cure the default and whether the Debtor is otherwise current on all the payments.

• Be sure to be current on your mortgage.

In addition, it is mandatory for the Debtor(s) to file a Debtor’s Certification Regarding Domestic Support Obligations regardless of whether or not the Debtor(s) have/has a Domestic Support Obligation. This form can be found the Court’s website here.

After all checks have cleared the bank, the Trustee will file a Final Report and Account.

• Debtors, please be sure to cash your refund check(s) timely. The longer it takes for checks the clear, the longer it will take for the case to close.

Contact you attorney immediately. Your attorney can file papers asking the judge to change the provisions of your plan. Do not call the Trustee. The Trustee cannot change the provisions of your plan, or make any payment arrangements. Only the bankruptcy judge can do so.