Q: How do bankruptcy courts determine a consumer's ability to file for Chapter 7 bankruptcy protection?
A: Federal bankruptcy laws require citizens to take an income-based "means test" that tests a debtor's ability to pay back one's debts. If citizens pass this test, they may file for Chapter 7 bankruptcy protection.
Q: How do consumers 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 named a petition. The petition should consist of the consumer's private information as well as a correct assessment of the consumer's possessions and debts.
Q: What personal information needs to be included in the petition?
A: The consumer should consist of 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 include a correct list of the names and address of creditors involved. Citizens should also provide tax returns and an accurate listing of their belongings and income. This information is vital because tis the only way the court can determine if the consumer is able to get 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 situation will ask the consumer inquiries under oath about the petition. During this time, the trustee might ask citizens questions about their income and their assets.
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 may attend a creditor's meeting if they wish. Q: When can citizens expect their discharge?
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 remove order all of a consumer's debts?
A: No. There are some debts that a Chapter 7 remove order will not cover. For example, student loans, past due taxes and overdue child support payments are not 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 attorney who specializes in filing for Chapter 7 bankruptcy protection for more specifics.
