Legal Question in Bankruptcy in New York
restitution owed to federal Gov.
A year ago i filed for Bankruptcy under Chater #13, And i owe some restition to the fed court In new york. My question to you is: I listed that debt on my bankruptcy list as a debt, but they are still asking me to pay direct to to them. It was my understanding that the trustee would handled all my debt listed. That is my question, should i be paying them direct, or the payment should becoming from the trustee? I am a retired citizen of this country and is now paying the trustee over $700.00 per month. I cant get all my medicine much less pay for anything else. Please Note: this was a New York case because i live and worked there at the time.........but now live in North Carolina
1 Answer from Attorneys
Re: restitution owed to federal Gov.
While you are in Chapter 13 there is an automatic bankruptcy stay which precludes any creditor of yours, even the Federal government, from trying to collect a debt. It is possible that you are receiving computer-generated collection notices. You should make sure this creditor is aware of your bankruptcy filing.
Unless your confirmed Chapter 13 plan indicates that this particular debt is to be paid "outside the plan," the debt is to be paid through the plan.
If you had an attorney represent you in this matter, you should contact him immediately for assistance.
By the way, restitution is non-dischargeable. That means that if your plan proposes to pay less than 100% on this debt, you will be responsible for paying the balance after your plan is finished.
For more information about Chapter 13 bankruptcy, please see my bankruptcy web site: http://www.bankruptcycanhelp.com/chapter-13-bankruptcy.php.
Even the U.S. Government can be sanctioned and penalized if they violate the bankruptcy stay. For information about creditors who were sanctioned for violating the order of discharge, check out this article: http://www.bankruptcycanhelp.com/published-articles/2005-06-S-Discharge.php
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