Q: How do bankruptcy courts determine a consumer's ability to file for Chapter 7 bankruptcy protection?
A: Federal bankruptcy laws require consumers to take a salary-based "means test" that screenings a debtor's ability to pay back one's debts. If consumers pass this test, they may file for Chapter 7 bankruptcy protection.
Q: How do citizens ask for Chapter 7 bankruptcy protection?
A: Consumers who file for Chapter 7 bankruptcy protection must ask a bankruptcy court to legally certify their inability to pay back their debts. To do this, consumers must file a formal request for relief. This request is called a petition. The petition must include the consumer's private information as well as a correct assessment of the consumer's assets and debts.
Q: What private information needs to be included in the petition?
A: The consumer should include list his name, sending address, phone number and social security number on the first page of the petition.
Q: What financial information should be included in the petition?
A: Consumers should consist of an accurate list of the names and address of lenders involved. Citizens should also provide tax returns and an accurate listing of their assets and income. This information is vital because it is the only way the court could decide if the consumer is able to receive a Chapter 7 bankruptcy remove order.
Q: When should a consumer expect to attend a creditor's meeting?
A: Most citizens should expect to attend a creditor's meeting approximately 30 days after the original petition was filed.
Q: What happens at the creditor's meeting?
A: Typically speaking, the trustee who's assigned to manage the consumer's case will ask the consumer questions under oath about the petition. During this time, the trustee could ask citizens inquiries about their salary and their possessions.
Lenders may also ask consumers questions about their salary or their possessions. However, lenders may not browbeat the witness about their debts during the questioning process.
Q: Are these meetings open to the public.
A. Yes. Individuals could attend a creditor's meeting if they wish.
Q: When may citizens expect their remove?
A: In general, citizens could get a Chapter 7 discharge order after the original petition was filed. However, this timeframe may be extended if a creditor objects or if the trustee needs more information about the consumer's case.
Q: Will a Chapter 7 bankruptcy discharge order all of a consumer's debts?
A: No. There are some debts that a Chapter 7 discharge order will not cover. For example, student loans, past due taxes and overdue child support payments aren't covered by a Chapter 7 bankruptcy remove.
Q: Where can a consumer find out more information about Chapter 7 bankruptcy protection?
A: Citizens can ask a local bankruptcy lawyer who specializes in filing for Chapter 7 bankruptcy protection for more specifics.
