Filing Bankruptcy and Meeting the Bankruptcy Trustee

Over the last couple years, filing bankruptcy has become a common occurrence for many Americans. Prior to the financial crisis in 2008, the topic of bankruptcy was taboo in most circles. Maybe it was pride from the embarrassment of failing finances or maybe it was just misinformation that caused the stigma over the years. Whatever it is, the credit industry benefits from people avoiding filing bankruptcy at all cost. As long as they can get people to continue sending the minimum payments, they will get fatter and fatter with all the interest. Now, whether it be by force or just more good information online, most people are seeing there is nothing wrong with bankruptcy. Bankruptcy was created to give good hard working Americans a second chance and fresh start on a stable financial future.

After making the decision to file for bankruptcy, one will need to decide on which chapter to file. The best thing to do is hire a bankruptcy attorney and let them help the person making the decision. There are two basic chapters of personal bankruptcy, Chapter 7 and Chapter 13. When most people think of personal bankruptcy they think of Chapter 7. Filing Chapter 7 bankruptcy is the most popular because there is no repayment plan required and all unsecured debts are wiped out the bankruptcy discharge. Chapter 13 bankruptcy is best known for its ability to protect property. Since there is a repayment plan required, usually people do not have to surrender any property unless they choose to. The next step is to have the bankruptcy attorney file a bankruptcy petition with the court. When submitting the bankruptcy petition, an individual is required to complete a pre-bankruptcy credit counseling course and submit the certificate along with the petition. Now that the bankruptcy is filed, the automatic stay will be put in place stopping all collection activity against the debtor. About 4 to 6 weeks after the filing date, the debtor will be required to go to the 341 meeting or meeting of creditors. At this meeting, the debtor will meet the bankruptcy trustee overseeing the bankruptcy filing. For many individuals, this causes gut wrenching worry up until that day. There is really nothing to worry about as long as the individual is being totally honest with the court. The bankruptcy attorney will usually prepare the debtor on what to wear and what will be asked at the hearing. Usually the whole thing will take about 10 minutes after the Bankruptcy trustee asks about 10 questions regarding the filing. Most people say that the worry was for nothing and it was a breeze.

After the 341 meeting, the bankruptcy attorney will remind their client to take the post-Bankruptcy financial management course that is required to be submitted prior to the bankruptcy discharge. Failure to take and submit the certificate will cause a dismissal of the bankruptcy filing. Finally, the debtor will receive the bankruptcy discharge about 2 to 3 months after the 341 meeting and will be on the road to becoming debt-free. In a short amount of time, the bankruptcy filing will be a blip in the past and forgotten.

by Sandra

Sandra is a writer from California who writes about issues related to law.

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