A Guide to Chapter 7 Bankruptcy
The bankruptcy law for filing Chapter 7 personal bankruptcy can be complex and may require a great deal of due diligence to complete correctly. Before considering filing for Chapter 7 it is strongly advised to look at all your options and consider hiring an experienced bankruptcy attorney.Bankrupcy laws change often it is important that you check with a bankruptcy attorney about any changes in Chapter 7 filing procedures that might have happened.
There are many consequences with filing for bankruptcy. Chapter 7 bankruptcy has a great deal of exceptions that could affect the overall impact this will have on your personal debt. These exceptions can often create issues with some of your creditors and you should become familiar with the potential pitfalls of Chapter 7. This article is hardly a detailed review of all of the nuances of Chapter 7 Bankruptcy law. It should give you some of the basics to make filing for bankruptcy a more understandable process.
Chapter 7 Where to Start
- The first step in filing is to put together a list of your creditors, a list of your assets and liabilities, list of exemptions, a list of current income and sources of income, a financial statement listing all expenditures and other financial considerations and finally any of the debts that are secured by an asset such as a property. In addition you may be required to provide to the trustee all of the estate’s property as listed in 11 U.S.C. 521. Once you file you can prohibit creditors from trying to obtain debt considerations by going after you or your property outside of the actual bankruptcy channels.
- Once filed the clerk of court presiding over your bankruptcy will give notice to your creditors as pursuant to 11 U.S.C. 342.
- There will be an open forum where you will meet with the creditors and they may ask you questions as it relates to your debt and the ability to pay those debts. Again during this meeting it is very helpful to have a bankruptcy attorney available to help guide you through this meeting. The meeting is presided by a Trustee.
- After the meeting of the creditors the trustee may deny requests of exemptions within 30 days.
- Within 90 days of the meeting a creditor must file a proof of claim for any moneys available. If there is any additional funds available an extension may be made available. The trustee may deny any claim during these proceedings.
- Any denials of claims are considered objections and must be filed by the trustee or creditor within 60 days from the initial creditors meeting. The court will grant the discharge under the Bankruptcy rules if there are no additional motions to dismiss or objections to the bankruptcy case.
- There are several instances where a creditor can object to the discharging the debt owed to them these include but are not limited to:
- the debt is not listed on the schedules provided to the court
- a tax or customs duty;
- the debt is a student loan insured by the government.
- the debt was issued by the government as a fine or penalty
- the debt is associated with child support or alimony
- Other objections that may be cause for non-allowance of the debt to be protected under bankruptcy terms are as follows:
- A malicious injury to a person or property of another
- A debt that occurred close to the filing date
- Debt as a result of fraud
As someone considering filing for Chapter 7 Bankruptcy it is important that you consult with a local bankruptcy attorney who can help you with your case. This document is for reference purposes only and does not reflect a legal opinion or advice of an attorney. Each case has it’s own unique circumstances and this document is to be used for information purposes only and by reading this document you understand that you are using it at your own risk and the website and the author are indemnified from any damages that could result as a result of using this information.
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