What You Need To Know About Dealing With Bankruptcy
09/07/2007 | Bankruptcy
What is Chapter 7 and Chapter 13 bankruptcy?
With Chapter 7 bankruptcy, anything you own that is of value will be turned into money and used to pay off your debts to a creditor. You will lose just about everything you own, but you may be able to keep any personal or real property. The only way that you can get relief with this type of bankruptcy is if you cannot pay back your expenses. Of course, this is after the necessary costs of living are factored into the equation.
Chapter 13 bankruptcy is considered the "wage earner" form of bankruptcy because only a person with a certain regular income can file for this. The better part about this form of bankruptcy is that you will most likely get to keep your property, but you will have to be able to earn a wage to be able to pay back your debts. You will come with a repayment plan that allows you to pay back your debt in full but it must be approved by the court. A trustee is assigned to you to collect your payments and make sure you are complying with the payment plan. Only after you are finishing paying all of your debts in the payment plan will you be free of bankruptcy.
What is Chapter 11 bankruptcy?
This form of bankruptcy allows businesses to get back on track after suffering a major loss financially. It allows these institutions to pay back the debts owed through a payment plan that the businesses will be able to follow and pay on time. These payments are made to creditors.
The U.S. Trustee and the Trustee that is assigned to my case - is there any difference?
The United States Trustee's Office oversees all bankruptcy cases. It is a part of the Department of Justice and any major complaints you have with your case can be forward to your area's U.S. Trustee. The Trustee in your particular case is assigned by the U.S. Trustee to supervise and make sure your case is going smoothly.
Is Having An Attorney Necessary For Bankruptcy Filing?
You may file without an attorney if you are an individual. However, businesses are required to have an attorney when filing for bankruptcy.
What is a discharge?
A discharge involves a certain amount of debt that you are not obligated to pay back. It is a court order and creditors can't make you to pay that money back if you are told you do not have to. There are a number of exceptions to a discharge and they must be looked at carefully so know exactly how much you have to pay. Discharges do not normally excuse debts that include taxes, student loans, child support, court-ordered fines, alimony, or debts that have been created because of credit fraud or drunk driving. There are just a few of the many stipulations that come along with a court-ordered discharge. A discharge can be denied at any time depending on your actions that could warrant it being taken away. You should address to an attorney to find out what debts of yours can be considered for discharge.
Where can I get the forms and assistance on filing for bankruptcy?
All the forms and information that you need can be found at your local Bankruptcy court. Your attorney should also have all the necessary information and paperwork that you need to file for bankruptcy.
I need to get a copy of one of my documents.
In order to get a copy of whatever document you are looking for, you will need to get in touch with your local Bankruptcy Court.
When can I have my case closed?
A chapter 7 case will be considered closed 90-120 days after a Final Report. After everything is situated and all of your assets have been used to help pay off your debts. A chapter 11 case is considered closed after a Final Decree has been entered. A chapter 13 case is closed 60-90 days after the Final Report has been filed. Chapter 13 cases generally last 36-60 months before the closing period. After your case has been completed you can start thinking about new credit cards to sign up for.
One of my creditors refuses to accept discharge. What do I do?
You need to call your attorney for help in this situation. If this is happening and you do not have one, you should start considering some legal advice to help you out. After talking to your attorney, send your creditor your discharge document copy along with a copy of the schedules listing.
How can I find it out if someone has filed for bankruptcy?
You need to contact your local Bankruptcy Court in this situation.
What is a "341 Meeting of Creditors"?
This is a forum that allows creditors and other parties that have a vested interest in the case to question debtor under oath. This allows the creditors to get information about the debtor's financial problems in a setting that essentially forces the person to tell the truth unless he/she wants the added consequences of perjury.
Do I have to attend the 341 meeting?
If you are a debtor, you have to show up at the 341 meeting. As far as creditors are concerned, it is not mandatory but it could be a good idea to find out about the debtor's financial issues.
What if I am going to be late for my 341 meeting? Do I still need to come?
It is not recommended that you show up late for your meeting, but it is better to be late than to not show up at all. Again, attendance at the 341 meeting is mandatory and your case can be dropped if you do not come.
I cannot make it to the 341 meeting when it is scheduled. What can I do?
You have to appear at your meeting or you face the risk of having your case dismissed. Basically, you should make every effort to be at this meeting and unless there is an absolute dire emergency, there is no reason why you should not be able to make it to the 341 meeting.
Where do I go for a 341 meeting, how do I get there, and how do I confirm a meeting date or time?
To find out where your 341 meeting is located, you will have to contact your local district office. They will be able to tell you where it is and could probably give you some directions if you need it. If the local district office is unable to give you direction to the meeting site, try using a map web source to ensure that you know the route. It is imperative that you know where the meeting is and you need to arrive on time.
To find out when and what time the meeting is, consult your Notice of Meeting of Creditors. If you do not have the notice, get in touch with your attorney. If he/she does not know or you do not have an attorney, you need to get in touch with the court. Eventually, someone will have the information for you.
What happens if my attorney is involved with another meeting?
If this should happen, please inform the trustee that you are present and your attorney is not available. In most cases, the trustee will "trail" the meeting until the end of the hour's calendar, but if your attorney fails toCopyright © 2007-2008 www.unioncreditreport.com. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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