GENERAL
BANKRUPTCY QUESTIONS
Q:
What is a Chapter 7 bankruptcy?
A:
Chapter 7 is the Bankruptcy Code's liquidation chapter. It is sometimes
referred to as "straight bankruptcy". A Chapter 7 trustee is
appointed to take over your property. Any property of value will be sold
or turned into money to pay your creditors. Depending on the law of the
State in which you file, you may be able to keep some of your personal
and real property. If you have the ability to repay your debts, after
taking into account reasonable and necessary living expenses, you may
not qualify for relief under this chapter.
Q:
What is a Chapter 13 bankruptcy?
A: Chapter 13 is frequently referred to as the "wage
earner" chapter. Only an individual with regular income that owes,
on the date of the filing of the petition, noncontingent, liquidated,
unsecured debts of less than $269,250 and noncontingent, liquidated, secured
debts of less than $807,750, or an individual with regular income and
such individual's spouse, except a stockbroker or a commodity broker,
that owe, on the date of the filing of the petition, noncontingent, liquidated,
unsecured debts that aggregate less than $269,250 and noncontingent, liquidated,
secured debts of less than $807,750 may be a debtor under Chapter 13.
Under Chapter 13 you repay your debts (or a portion thereof) through a
repayment plan. You can usually keep your property, but you must earn
wages or have some other source of regular income to be a debtor under
this chapter. The Court must approve your repayment plan and budget. A
Chapter 13 trustee is appointed, and will collect the payments from you.
The trustee, in turn, will pay your creditors and monitor your compliance
with the terms of your repayment plan. After completion of all payments
under your plan, you will receive your discharge.
Q:
What is a Chapter 11 bankruptcy?
A: A chapter
11 bankruptcy allows businesses and individuals to reorganize their financial
affairs by making payments to creditors through a plan of reorganization.
Q:
What is the difference between the U.S. Trustee and the Trustee assigned
to a case?
A: The United States Trustee's Office is part of
the Department of Justice, which oversees all bankruptcy cases. A Trustee
is a private individual appointed by the United States Trustee to supervise
and administer a particular case.
Q:
Do you have to have an attorney to file for bankruptcy?
A: If you are filing as an INDIVIDUAL, you may file
your own case. However, if you are filing as a CORPORATION or PARTNERSHIP
you must file through an attorney.
Q:
What is a discharge?
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A: A discharge is a Court Order that says you do
not have to pay certain of your debts. Creditors cannot force you to pay
any debts which have been discharged. However, there are many exceptions.
For example, in Chapter 7 a discharge does not excuse payment of most
tax debts, child support obligations, alimony, student loans, court-ordered
fines and restitution, and debts created by fraud or drunk driving among
others. In addition, your discharge may be denied entirely if you conceal
property, destroy, falsify, or conceal records or make a false oath. A
creditor may still attempt to repossess collateral that secures payment
of the debt. Please consult an attorney to find out which debts are dischargeable
for your individual situation.
Q:
Where do I go to get the forms and information on filing for bankruptcy?
A: From your local Bankruptcy Court or your Attorney.
Q:
I need a copy of my [document].
A: Please contact your local Bankruptcy Court.
Q:
When will my case be closed/final?
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A: You should speak to your attorney regarding the
closing of your case.
Generally, a chapter 7 no-asset case will be closed approximately 60-90
days after the 341 Meeting of Creditors, and a chapter 7 asset case will
be closed approximately 90-120 days after a Final Report is filed and
after all assets have been administered. Generally, a chapter 11 case
will be closed after a Final Decree is entered. Generally, a chapter 13
case will be closed approximately 60-90 days after the Final Report is
filed. (Chapter 13 cases last from 36 to 60 months before closing begins).
Q:
What's the status of a particular case?
A: Please contact your local Bankruptcy Court.
Q:
What is the balance on my Chapter 13 account?
A: Please contact your chapter 13 trustee.
Q:
One of my creditors is not accepting my discharge. He wants his money.
Will you call him and enforce my discharge?
A: No, please contact your attorney. If you do not
have an attorney, then you need to consider seeking legal advice. Sending
your creditor a copy of your discharge with a copy of the page of the
schedules listing that creditor might solve the problem.
Q:
I would like information on property for sale by the Trustee--where can
I obtain this? ![Arrow Up](https://webarchive.library.unt.edu/web/20081108081613im_/http://www.usdoj.gov/ust/r12/Graphics/arrowtop.gif)
A: Please go to your location's Trustee list on
this site and contact him/her directly.
Q:
How can I find out if John Doe has filed bankruptcy?
A: Please call your local Bankruptcy Court.
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