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 tests a debtor’s ability to pay back one’s debts. If consumers pass this examination, they may file for Chapter 7 bankruptcy protection.
Q: How do consumers ask for Chapter 7 bankruptcy protection?
A: citizens who file for Chapter 7 bankruptcy protection should ask a bankruptcy court to legally certify their inability to pay back their debts. To do this, consumers should 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 belongings and debts.
Q: What private information needs to be included in the petition?
A: The consumer should include list his name, mailing 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 a correct listing of their possessions and salary. This information is vital because it’s the only way the court may determine if the consumer is able to get a Chapter 7 bankruptcy discharge 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 talking, the trustee who is assigned to manage the consumer’s situation will ask the consumer questions under oath about the petition. During this time, the trustee might ask citizens inquiries about their salary and their assets and any bank charges.
Lenders may also ask citizens questions about their income or their possessions. However, creditors may not browbeat the witness about their debts during the questioning process.
Q: Are these meetings open to the public.
A. Yes. People could attend a creditor’s meeting if they wish.
Q: When may citizens expect their discharge?
A: In general, consumers may receive a Chapter 7 remove order after the original petition was filed. However, the timeframe might 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 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 could a consumer find out more information about Chapter 7 bankruptcy protection?
A: Citizens may ask a local bankruptcy lawyer who specializes in filing for Chapter 7 bankruptcy protection for more details.