Tuesday, January 19, 2010 Do I have to list every debt I owe in my Chapter 7 bankruptcy case?
Yes, you must list every debt that you owe when you file a Chapter 7 bankruptcy case. The law requires that you list all of your debts and all of your assets. As a debtor, you have a duty to provide a full and complete picture of your financial situation. You cannot pick and choose which creditors to list.
Your petition is signed under penalty of perjury. Intentionally failing to list a debt can result in criminal charges. While this is rare, it is certainly a reason to make sure that you list every creditor that you know you owe. In addition, failure to list a creditor can be used against you in a creditor’s effort to deny you a discharge.
After you file your case, you can choose to repay any debt that you list in your case. For example, you can continue paying for your house or car or other secured debt. Generally, you will sign an agreement with the secured creditor to continue paying their debt. You can also pay an unsecured debt after you file your case. However, we generally advise against signing any paperwork requiring you to repay an unsecured debt.
Our Birmingham and Tuscaloosa Bankruptcy lawyers will run a credit check to make sure that all debt being reported is scheduled in your case. It is important for you to bring all of your bills into the office so that we can cross check them against the credit report. You should also bring a copy of any lawsuits or collection letters. Please remember that you will not receive a discharge for any debt you fail to list.
Monday, January 18, 2010 What is a Chapter 7 Bankruptcy Case?
Most people talk about Chapter 7 as a “total liquidation.” People believe that they will lose all their property in exchange for wiping out all their debt. Very few people actually lose any property when they file a Chapter 7 case. In fact, almost 99% of Chapter 7 cases are deemed “no asset” which means that the trustee found no property to sell for the creditors. In making his determination, a trustee has to subtract any money owed on property and a debtor’s exemptions. Next, he looks at the value of the property and how much he could sell it for after payment of any costs of sale. If the value of the property is insufficient to pay the liens, costs of sale, and exemptions, the trustee reports the case as “no asset.”
To file a Chapter 7 case you must pass a means test (more on this in future posts). In simple terms, you may be denied Chapter 7 relief if you earn too much money. Our experienced Birmingham and Tuscaloosa bankruptcy lawyers can analyze your facts and tell you whether you qualify to file a Chapter 7. There are numerous ways to qualify a person for Chapter 7 and the means test does not apply to everyone. This is an area of bankruptcy where the experience of your attorney is extremely important. Make sure you hire an experienced attorney to handle your bankruptcy case.
Most people who file Chapter 7 are able to keep their property and wipe out their debts. In a Chapter 7 bankruptcy case you can choose to keep your home and cars by entering into an agreement with specific creditors to continuing paying on secured debt.
The filing fee for a Chapter 7 bankruptcy case is $299.00. There are other expenses in Chapter 7 that total around $100. Most experienced attorneys charge around $1200.00 for a simple Chapter 7 bankruptcy case.
If you are struggling with crushing debt you need to call Don and Melinda Dionne for a confidential, free, no obligation, consultation. Don and Melinda will show you how to get out of debt and start living again. Call now at 205-349-5911 (Tuscaloosa) or 205-453-1012 (Birmingham). Take the first step and let Don and Melinda show you how much better your life can be.
Monday, January 18, 2010 Who is the Chapter 7 Trustee?
Every Chapter 7 bankruptcy case has a trustee. In Chapter 7 cases in Alabama, the Chapter 7 trustee is an attorney who serves on a panel. Each member of the panel is assigned cases on a rotational basis. Some divisions rotate trustees on a weekly basis while others rotate based on the number of cases assigned.
It is the job of the Chapter 7 trustee to represent the interests of the unsecured creditors. The Chapter 7 trustee does not represent you. You have an attorney to represent your interests. It is your job as a debtor to provide the trustee with honest and complete answers to his or her questions. You may also be asked to supply documents to the Chapter 7 trustee. Many people are very nervous about appearing before the trustee. I tell my clients that they should relax and keep the following in mind when preparing for their meeting:
1. Trustees will not harass you nor will they allow anyone else to do so.
2. The trustee is not the judge. You will probably never meet the judge in a Chapter 7 case.
3. Creditors rarely appear at your meeting with the trustee. This meeting is called the 341 meeting or the first meeting of creditors.
4. Your nerves will not have time to settle before the trustee is telling you “Thank You, and Good Luck.” You will then look at me like a deer dazed by headlights asking “What do I do now?” The answer to that question is usually “Nothing, you are done and all we have to do now is to wait for your discharge date.”
5. You may have to wait an hour or more for your case to be called but the time you will actually sit before the trustee will be measured in minutes. In most cases, you will be before the trustee for 2 to 3 minutes.
6. You do not need to bring anything with you to the meeting unless I have previously told you to bring documents.
7. The trustee will not ask you anything that I have not already talked to you about. In fact, I will tell you the questions the trustee usually asks.
8. I will be with you when you go to your meeting of creditors. I will make sure that your interests are protected. I will get you through this difficult time.
9. I have never had a client who, after the meeting of creditors, did not look at me with this “You mean that’s it look.” In fact, most people ask me that very question.
10. You will feel like the weight of the world is off your shoulders when you leave your meeting.
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