Bankruptcy Q & A
What is bankruptcy?
Bankruptcy is a way for people or businesses who owe more money than they can pay right now (a "debtor") to either work out a plan to repay the money over time under Chapter 11, 12 or 13, or for most of the bills to be wiped out ("discharged"), as in a Chapter 7 case. While the debtor is either working out the plan or the trustee is gathering the available assets to sell, the Bankruptcy Code provides that creditors must stop all collection efforts against the debtor. When the bankruptcy petition is filed, you are immediately protected from your creditors. Contact Fort Lauderdale Bankruptcy Lawyer Carmen G. Soto to assist you in your bankruptcy case.
What is a discharge?
The discharge order is issued by the court and permanently prohibits creditors from taking action to collect dischargeable debts against the debtor personally. This does not prevent secured creditors from seizing collateral if payments are not kept up or other creditors from pursuing property of the estate. The following information is intended as a summary only. You are strongly encouraged to consult with an attorney in order to determine the rights and obligations that apply to your individual situation. Some debts are not dischargeable, and others may be found to be non-dischargeable depending on particular circumstances.
In a Chapter 7 case, the bankruptcy court will order that the debtor be discharged of all dischargeable debts once the time for filing complaints objecting to discharge has expired unless:
· a. the debtor is not an individual;
· b. a complaint objecting to the debtor's discharge has been filed; or
· c. the debtor has filed a waiver of discharge.
The granting of a discharge does not automatically result in the closing of a case. All contested matters, adversary proceedings, and appeals must be resolved and the appointed trustee or debtor-in-possession must file a final report and account and request entry of a final decree before the Clerk's Office will close the case.
What is a Creditor's Meeting (§341 Meeting)? What can I expect to happen there?
Debtors have a duty to appear and testify under oath and to be questioned by the trustee at the §341(a) meeting. This meeting is presided over by the trustee assigned to the case and is held approximately 40 days after the new petition is filed. Failure to appear may result in dismissal of the case. If a continuance of the meeting date is sought, contact the trustee assigned to the case.
What can I do if a creditor keeps trying to collect money after I have filed bankruptcy?
If a creditor continues to attempt to collect a debt after the bankruptcy is filed in violation of the automatic stay, you should immediately notify the creditor in writing that you have filed bankruptcy. Provide them with either the case name, number, and filing date, or a copy of the petition that shows it was filed. If the creditor still continues to attempt to collect, the debtor may be entitled to take legal action against the creditor to obtain a specific order from the court prohibiting the creditor from taking further collection action, and if the creditor is willfully violating the automatic stay, the court can hold the creditor in contempt of court and punish the creditor by fine or incarceration. Any such legal action brought against the creditor will be complex and will normally require representation by a qualified bankruptcy attorney. Contact Fort Lauderdale Bankruptcy Attorney Carmen G. Soto to assist you in your bankruptcy case.
How long may credit bureaus include bankruptcy information on a credit report?
Consumer credit reports may reveal Chapter 7 bankruptcy cases for 10 years from filing. Chapter 13 information can be included for seven years from discharge or 10 years from filing if there is no discharge. Account information for debts discharged under either chapter may be included in credit reports for seven years after the accounts go inactive.Contact Fort Lauderdale Bankruptcy Attorney Carmen G. Soto to assist you in your bankruptcy case.
Bankruptcy is a way for people or businesses who owe more money than they can pay right now (a "debtor") to either work out a plan to repay the money over time under Chapter 11, 12 or 13, or for most of the bills to be wiped out ("discharged"), as in a Chapter 7 case. While the debtor is either working out the plan or the trustee is gathering the available assets to sell, the Bankruptcy Code provides that creditors must stop all collection efforts against the debtor. When the bankruptcy petition is filed, you are immediately protected from your creditors. Contact Fort Lauderdale Bankruptcy Lawyer Carmen G. Soto to assist you in your bankruptcy case.
What is a discharge?
The discharge order is issued by the court and permanently prohibits creditors from taking action to collect dischargeable debts against the debtor personally. This does not prevent secured creditors from seizing collateral if payments are not kept up or other creditors from pursuing property of the estate. The following information is intended as a summary only. You are strongly encouraged to consult with an attorney in order to determine the rights and obligations that apply to your individual situation. Some debts are not dischargeable, and others may be found to be non-dischargeable depending on particular circumstances.
In a Chapter 7 case, the bankruptcy court will order that the debtor be discharged of all dischargeable debts once the time for filing complaints objecting to discharge has expired unless:
· a. the debtor is not an individual;
· b. a complaint objecting to the debtor's discharge has been filed; or
· c. the debtor has filed a waiver of discharge.
The granting of a discharge does not automatically result in the closing of a case. All contested matters, adversary proceedings, and appeals must be resolved and the appointed trustee or debtor-in-possession must file a final report and account and request entry of a final decree before the Clerk's Office will close the case.
What is a Creditor's Meeting (§341 Meeting)? What can I expect to happen there?
Debtors have a duty to appear and testify under oath and to be questioned by the trustee at the §341(a) meeting. This meeting is presided over by the trustee assigned to the case and is held approximately 40 days after the new petition is filed. Failure to appear may result in dismissal of the case. If a continuance of the meeting date is sought, contact the trustee assigned to the case.
What can I do if a creditor keeps trying to collect money after I have filed bankruptcy?
If a creditor continues to attempt to collect a debt after the bankruptcy is filed in violation of the automatic stay, you should immediately notify the creditor in writing that you have filed bankruptcy. Provide them with either the case name, number, and filing date, or a copy of the petition that shows it was filed. If the creditor still continues to attempt to collect, the debtor may be entitled to take legal action against the creditor to obtain a specific order from the court prohibiting the creditor from taking further collection action, and if the creditor is willfully violating the automatic stay, the court can hold the creditor in contempt of court and punish the creditor by fine or incarceration. Any such legal action brought against the creditor will be complex and will normally require representation by a qualified bankruptcy attorney. Contact Fort Lauderdale Bankruptcy Attorney Carmen G. Soto to assist you in your bankruptcy case.
How long may credit bureaus include bankruptcy information on a credit report?
Consumer credit reports may reveal Chapter 7 bankruptcy cases for 10 years from filing. Chapter 13 information can be included for seven years from discharge or 10 years from filing if there is no discharge. Account information for debts discharged under either chapter may be included in credit reports for seven years after the accounts go inactive.Contact Fort Lauderdale Bankruptcy Attorney Carmen G. Soto to assist you in your bankruptcy case.