An Analysis of Chapter 7 Bankruptcy
Married men and women must gather these records for their spouse irrespective of whether they are filing a joint petition, distinct individual petitions, or even if only one spouse is filing. In a situation where one spouse files, the income and expenses of the non-filing spouse must be present so that the court, the trustee and creditors can examine the household’s financial condition.
On the list of schedules that an individual debtor will fileis a schedule of “exempt” property. The Bankruptcy Code allows an individual debtor (4) to protect some property from the claims of creditors because it is exempt under federal bankruptcy law or within the laws of the debtor’s home state. 11 U.S.C. – 522(b). Many states have made good use of a provision in the Bankruptcy Code that allows each state to adopt its own exemption law in preference to the federal exemptions. In other jurisdictions, the individual debtor has got the option of considering between a federal package of exemptions or the exemptions available under state law. Thus, if certain property will be exempt and may be kept by the debtor is normally a question of state law. The debtor should consult a lawyer to figure out the exemptions that can be found in the state where the debtor lives.
Submitting a petition under chapter 7 “automatically stays” (stops) most collection measures versus the debtor or the debtor’s property. 11 U.S.C. – 362. But filing the petition won’t stay particular sorts of steps listed under 11 U.S.C. – 362(b), and the stay might be effective just for some days in some situations. The stay comes up by technicalities of law and necessitates no judicial action. So long as the stay is in effect, creditors frequently may well not trigger or keep on suing, salary garnishments, or cell phone calls insisting payments. The bankruptcy clerk gives notice of the bankruptcy case to all creditors whose names and addresses are provided by the debtor.
In between 20 and 40 days once the petition is submitted, the case trustee (described below) will hold a gathering of creditors. In the event the U.S. trustee or bankruptcy administrator (5) schedules the meeting at a place that does not have regular U.S. trustee or bankruptcy administrator staffing, the conference can be held no more than 60 days after the order for relief. Fed. R. Bankr. P. 2003(a). During this meeting, the trustee puts the debtor under oath, and both the trustee and creditors might seek advice. The debtor will have to be present at the discussion and answer questions regarding the debtor’s financial affairs and property. 11 U.S.C. – 343. If a couple have filed a joint petition, they together must show up at the creditors’ meeting and answer questions. Within 10 days of the creditors’ meeting, the U.S. trustee will report to the court if the case must be presumed to become an abuse within the means test described in 11 U.S.C. – 704(b).
It is very important for the debtor to cooperate with the trustee and to furnish any financial information or information that the trustee asks for. The Bankruptcy Code requires the trustee to ask the debtor questions at the meeting of creditors to make sure that the debtor understands the potential final results of seeking a discharge in bankruptcy for example the effect on credit ratings, the opportunity to file a petition under a different chapter, the consequence of receiving a discharge, and the effect of reaffirming a debt. Some trustees produce written information on these topics at or prior to the meeting to ensure the debtor knows this information. To be able to preserve their independent judgment, bankruptcy judges are prohibited from attending the meeting of creditors. 11 U.S.C. – 341(c).
In order to accord the debtor full-scale relief, the Bankruptcy Code makes it possible for the debtor to convert a chapter 7 case to a case under chapter 11, 12, or 13 (6) as long as the debtor is a candidate to be a debtor in the new chapter. However, a condition of the debtor’s voluntary conversion would be that the case has not previously been converted to chapter 7 from another chapter. 11 U.S.C. — 706(a). Thus, the debtor will not be allowed to change the case consistently from one chapter to another.
For help with a Savannah Georgia bankruptcy, find a bankruptcy lawyer Savannah. A Savannah Georgia bankruptcy lawyer could give you the help you need.
