Real Bankruptcy information - How to file bankruptcy
Author: Alexander Travis
If you are thinking about filing bankruptcy, you must know how to declare bankruptcy. Before you can file either Chapter 7 or 13, you must be able to pass under what is called a "means test". The means test identifies which people have the financial capacity to continue to pay a significant portion of their bills to creditors. The means test involves comparing the persons's income to the average income of the state or county in which the debtor resides. If the debtor's gross income is above the average, another set of calculations (based on ratios of debt to income) will identify whether he or she can file a Chapter 7 liquidation or Chapter 13 repayment case.
It does not matter where you are located, in order to file bankruptcy, there is a lot of paperwork to file. The bankruptcy process begins with the filing of a petition and many forms with the local bankruptcy court. These forms consist of itemized lists of all your assets, debts, income, expenses, as well as other very important personal background and financial information. In addition, you must file a certificate of credit counseling, tax returns (or transcripts) for the recent tax year; all tax returns that were filed with the IRS while your bankruptcy case is pending; copies of pay stubs or other proof of income received 60 days prior to filing; statement of currently monthly income and any reasonably anticipated changes in income or expenses after filing.
While in a Chapter 7 (liquidation) case, the bankruptcy court will appoint a trustee to represent the interests of your creditors. After a month or so from the date of the filing, you have to be present at a “meeting of creditors” in which the trustee will answer all questions regarding your assets, debts, and other financial information. Despite the name, banks and creditors hardly ever are at these meetings. Once finished with the meeting, the trustee liquidates the property that may be taken from you. He or she will then take the cash and split it amongst the creditors. Once liquidation is done, the court will schedule one last hearing and discharge all debts. At this point, you no longer legally owe your creditors and they are forbidden from trying to collect anything from you.
A Chapter 13 (wage earner) bankruptcy case begins by filing the same papers as under a Chapter 7. In addition, you must file a workable plan for repaying your debts with the bankruptcy court, which will approve the plan. You start sending payments directly to the chapter 13 trustee shortly after filing. The trustee then pays your creditors according to the terms of the court-approved plan. When you have repaid your creditors according to the plan, a court hearing will be held and you will be discharged. The debtor is protected from lawsuits, garnishments, and other creditor actions while the plan is in effect.
Chapter 13 is often preferable to chapter 7 debt relief because it enables the debtor to keep a valuable asset, such as a house, and because it allows the debtor to propose a "plan" to repay creditors over time – usually three to five years. Chapter 13 is also used by consumer debtors who do not qualify for chapter 7 under the means test.
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Find more information on how to file bankruptcy at http://www.realbankruptcyinfo.com If you are interested in debt relief visit http://www.relieve-debt.com
Who can represent a client in a bankruptcy hearing?
If a lawyer is licensed in Massachusetts, or Maine, which are both in the 1st circuit, and the lawyer had been admitted to the 1st Cirucit Federal Bar, can the lawyer represent a client in a bankruptcy hearing, such as at a creditors meeting and filing chapter 7 forms in New Hampshire. Does the attorney need to be licensed by the NH Bar first?
What to expect at a bankruptcy hearing of my creditors?
I unfortunatly have to go to court today and I am very nervous about to expect. Has anybody out there gone through this process.
it is chapter 7.
Anyone have experience appearing before a court Trustee & creditors for a bankruptcy hearing?
I am very nervous to say the least. My main creditors refused to let me make monthly payments, and were going to put liens on my house, so I declared Chapter 7 in Tennessee. I am now on Social Security Disability.
I already went through the credit counseling. Now I have to wait for a hearing. Can anyone explain their experience in a similar situation? I really don’t know what to expect.
Can I buy a cheap used car after I have my court hearing with Chapter 7 bankruptcy?
My court hearing for meeting the creditors/trustee is on July 10th for Chapter 7 bankruptcy in Florida. I was wonder since my household only have 1 car. I really need to have a extra car for me to use for work instead of using my spouse car. I’m planning to pay cash for a cheap used car but I need to know will it be a problem once after I do my court hearing?
Well I guess I have to wait for the letter of discharge right?? How long does that usually take?
Creditors contesting before Bankruptcy hearing?
We have our chapter 7 bankruptcy hearing coming up in a couple weeks, and in the mail just received a letter from Chase Bank that says that may be pursuing an “adversary proceeding pursuant to 11 U.S.C. & 523 objecting to the discharge of all or a portion of the debt”.
It talks about money we put on the credit card a few months ago, like in March, and then says we can settle with either a stipulation of payments or a one time lump some of a few thousand dollars.
I was just wondering if this is something that should worry us, or if anyone has gotten something like this leading up to their bankruptcy hearing.
Thanks. If there is any additional info I can provide to help someone answer this better let me know, and I’ll add a note.
We filed late August. My lawyer knows actually, I think they sent it to both of us.
We are also NOT reaffirming anything.
I have. It’s too long to discuss on here. Email me and I’ll give you the details. It isn’t near as bad as you think it’ll be. There’ll be tons of people there for the same reason you are. You’ll only be in front of the judge for about a minute. It goes so fast. Any creditors challenging it will come forward and most will lose their appeal. Any that don’t will be asked to set up reasonable payment plans.
yes, I filed Chapter 13, where you pay it back slowly, b/c I was trying to do the right thing. Most of my creditors didn’t show up, but the one major creditor showed up and the tension was high. A table is placed in front, and they will call your name and ask a few questions, then it’s over. Nothing to really fret about. I was nervous too and once it’s done, then you can relax.
As long as the attorney has been admitted to practice in the federal courts of some state, he may represent a bankruptcy client in some other federal district or state.
You should wait until the BK is final; the reason is 1) you are not supposed to have that much cash 2) you should not change your assets until he BK is final 3) a creditor may throw a monkey wrench in the works and you have to answer some more questions under oath before it is all done, and you would have to reveal the car or risk having your BK thrown out 5) there is too much risk for too little reward 6) if you absolutely cannot live and I mean get to work, see if you can rent one for the interim from a “junk car rental place” 7) you NEED to not change your status at all until it is final
you should be asking your BK attorney this question I hope you have beed advised that you cannot increase your income AT ALL until your BK is final, the rulkes are so strict that I am amzed that a two earner family was able to pass the means test for a chapter 7…good luck and don’t risk having your chapter 7 converted to a 13