Credit Card Offers and Bankruptcy Questions

This article is going to cover all of the basic questions that people have regarding bankruptcy. There are a lot of issues that bring confusion so this article hopes to clear up any misunderstandings.

Chapter 7 bankruptcy and all that it is about

Chapter 7 is a bankruptcy code that is sometimes called 'straight bankruptcy' and it simply means that a trustee is appointed to take over your property. Any debt that you owe to credit card companies or other creditors will be paid through the equity of your home.

Also, it will depend on which state you live in whether you will be allowed to keep your personal property! Some states regulate that you cannot keep certain objects such as cars, computers and other expensive merchandise. If you have the resources to pay off your debt, you may not qualify for debt relief in this manner.

Chapter 13 bankruptcy and all that it is about

Also known as the 'wage earner' chapter, Chapter 13 bankruptcy all depends on wages in each personal case. You can only be a debtor under Chapter 13 if you are an individual:

• With regular income that owes money on the date of the petition that is non-contingent, liquidated or unsecured such as credit cards in an equal amount under $269,250 and non-contingent, liquidated and secured debts of under $807,750.

• With regular income and a spouse (outside of a stockbroker or commodity broker) that owes money on the date of the petition that is non-contingent, liquidated or unsecured such as credit cards in an equal amount under $269,250 and non-contingent, liquidated and secured debts of under $807,750.

Only under these tight restrictions is someone able to claim Chapter 13 bankruptcy. In Chapter 13 bankruptcy you repay your debts through a payment plan that usually takes numerous years to complete. Most of the time you are allowed to hold onto your property but you still have to have a job (or regular income) to be a debtor in Chapter 13.

A Chapter 13 trustee becomes appointed to collect payments from you after you have set up a payment plan. That trustee will then pay your creditors (credit card companies included). The Court must have the final say in whether you have an appropriate repayment plan.

Chapter 11 bankruptcy and all that it is about

Chapter 11 bankruptcy is for businesses and individuals who have fallen behind and need a way to organize payments to their creditors, such as credit card companies and lenders. Small businesses with business credit cards often will fall into this form of bankruptcy.

Is there a difference between US Trustees and the Trustee assigned to a case?

Yes! In fact, the USA's Trustee's Office is a branch off of the Department of Justice and helps oversee all of the bankruptcy cases that occur. A Trustee works as a private individual who is appointed by the USA's Trustee's Office to work on a particular case. The two work hand in hand with bankruptcy cases.

Are attorney's necessary in order to file for bankruptcy?

It depends. If you as an individual are filing for bankruptcy then sure you can file your own case without the help of an attorney. However if you are filing for bankruptcy as a business (whether a corporation or partnership) then you have to file through an attorney by law.

What exactly is a discharge?

A court order that clearly states that you do not have to pay a certain amount of your debts is called a discharge. Creditors themselves cannot force you to pay any of your discharged debts- although many will try. Credit card companies are known for going after individuals with discharged debts and asking for payments. The only exceptions to this rule are:

• A discharge does not mean you are released from your obligation to pay tax debts, child support, student loans, court fines and a number of other court issued debts.

• Discharges can possibly be denied if you have tried to destroy or conceal property or records while in court.

While credit card companies may come after you to take the collateral that secures the debt payment they probably have no merit. Talk to your attorney to find out if they have any rights to do this.

When is a bankruptcy case closed for good?

Your attorney should be talked to determine when your own personal case will be closed. Usually each Chapter of bankruptcy is closed at a certain time. For example, Chapter 11 bankruptcies are usually closed once the Final Decree is entered; Chapter 7 bankruptcies are closed around 120 days after the Final Report is turned in; Chapter 13 bankruptcies are closed around 90 days after the Final Report is turned in.

Where do you go to get information on bankruptcy filing?

Go to your local Bankruptcy Court or your Attorney. Either source can get you started.

Where can you get information on property for a sale by the Trustee?

Go to the Trustee's location and contact them directly.

Meeting of Creditors

What is the '341 Meeting of Creditors'?

The '341 Meeting of Creditors' is a forum where creditors and parties can ask debtors questions (all under oath) about their financial affairs.

If asked, do I have an obligation to appear at a '341 meeting?

Debtors have an obligation to be there but creditors don't have to - if they don't want to.

If I cannot make it to the meeting on that day/time, what do I do?

If you do not show up at that time your case has a high chance of being dismissed so do everything you can to make it!

Where do I go to attend my '341 meeting' for Chapter 7 or 11 bankruptcies?

Talk with your local bankruptcy office to find out where your local area does its meetings.

Can my children attend the 341 meeting?

While it is advised not to bring children, as long as they are quiet and quiet mannered you can bring them with you.

What if my attorney is tied up at another hearing?

Let the trustee's at the meeting know that you are there even though your attorney is not. If your attorney cannot make it for any of the meeting then follow the instructions of both the Judge and the Trustee.

How can I confirm my 341 meetings time and date?

Look at your Notice of Meeting of Creditors to see your date and time. If you do not have a notice, contact your attorney or the court to receive a copy.

Are meeting rooms available and accessible to people with disabilities?

Yes, all Region 12 meeting locations fit accessibility codes for those with disabilities.

If I am going to be late for my 341 meeting, should I still go?

Yes! If you do not make the meeting you risk your case being dismissed.

How do I go about reporting bankruptcy fraud?

If you have a concern/ complaint that deal with bankruptcy fraud than write it out formally and send it in letter format to the US Trustee in your area. Be sure to include you're: Name, address, day/night phone numbers and a brief but clear description of the fraud. If you have any related documents with the fraud include copies of these as well.