Married men and women should gather this info for their loved one regardless of whether they are filing a joint request, independent personal applications, or even if only one spouse is filing. In a situation where just one spouse files, the income and expenses of the non-filing spouse are essential so that the court, the trustee and creditors can measure the household’s financial condition.
One of several schedules that an individual debtor will fileis a schedule of “exempt” property. The Bankruptcy Code allows an individual debtor (4) to defend some property from the claims of creditors as it is exempt under federal bankruptcy law or under the laws of the debtor’s home state. 11 U.S.C. – 522(b). Many states have taken advantage of a provision in the Bankruptcy Code that allows for each state to adopt a unique exemption law in preference to the federal exemptions. In other jurisdictions, the individual debtor has the option of deciding upon between a federal package of exemptions or the exemptions available under state law. Thus, whether certain property is exempt and could be kept by the debtor can often be a question of state law. The debtor should consult an attorney to determine the exemptions that are available in the state where the debtor lives.
Submitting a petition under chapter 7 “automatically stays” (stops) just about all collection measures against the debtor or even the debtor’s property. 11 U.S.C. – 362. But filing the petition would not stay particular kinds of measures listed under 11 U.S.C. – 362(b), and the stay may just be effective simply for a few months in a few instances. The stay develops by technicalities of law and involves no judicial action. Provided that the stay is in effect, creditors most often wouldn’t begin or continue on cases, wage garnishments, and even telephone calls insisting payments. The bankruptcy clerk gives notice of the bankruptcy case to all creditors whose names and addresses are provided by the debtor.
In between 20 and 40 days after the petition is sent in, the case trustee (described below) will hold a meeting of creditors. If the U.S. trustee or bankruptcy administrator (5) schedules the meeting in a place without regular U.S. trustee or bankruptcy administrator staffing, the conference might be held at most 60 days following the order for relief. Fed. R. Bankr. P. 2003(a). During this meeting, the trustee puts the debtor under oath, and both trustee and creditors could very well ask questions. The debtor has got to be present before the gathering and answer questions dealing with the debtor’s financial affairs and property. 11 U.S.C. – 343. When a husband and wife have filed a joint request, they together must be present at the creditors’ meeting and respond to questions. Within 10 days of the creditors’ meeting, the U.S. trustee will report to the court whether the case needs to be presumed to become an abuse within the means test described in 11 U.S.C. – 704(b).
It is really important for the debtor to cooperate with the trustee and to produce any financial documents or reports that the trustee demands. The Bankruptcy Code mandates the trustee to ask the debtor questions at the meeting of creditors to ensure that the debtor is sure of the potential aftermaths of seeking a discharge in bankruptcy for example, the impact on credit history, the ability to file a petition under a varying chapter, the consequence of receiving a discharge, along with the effect of reaffirming a debt. Some trustees deliver written material on these topics at or prior to the meeting so the debtor knows this information. To be able to preserve their independent judgment, bankruptcy judges are banned from attending the meeting of creditors. 11 U.S.C. – 341(c).
In order to accord the debtor complete relief, the Bankruptcy Code will allow the debtor to convert a chapter 7 case to a case under chapter 11, 12, or 13 (6) so long as the debtor is entitled to be a debtor under the new chapter. However, a condition of the debtor’s voluntary conversion could be that the case has not previously been converted to chapter 7 from another chapter. 11 U.S.C. — 706(a). Thus, the debtor is not permitted to change the case over and over again from one chapter to another.
For help with an Athens GA chapter 13, contact an Athens Georgia bankruptcy attorney. A bankruptcy attorney Athens could give you the help you need.
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