Process After Filing Bankruptcy

Frequent questions related to what happens after you file bankruptcy.

When are claims filed in my Chapter 7 Bankruptcy?

For proof of claim filing requirements, chapter 7 cases have to be considered in two groups: (1) Asset Cases, where the trustee is selling property and paying creditors, and (2) No-asset Chapter 7 Cases, where all property is covered by one or more property exemptions.

What are the Deadlines Set in a Chapter 7 Bankruptcy?

Several deadlines are set or set in motion after a chapter 7 case has been filed. Several of these are keyed to 341 meeting date that will be set within a few days of the case being filed. Each of these deadlines can be extended by the court upon timely request, and such extensions are not unusual.

What is the codebtor stay?

The co-debtor stay is a special feature of chapter 13 bankruptcy, provided under 11 U.S.C. §1301. Bankruptcy cases carry with them a bankruptcy automatic stay which goes into effect on filing of a bankruptcy case to stop essentially all collections activity. The co-debtor stay is a relative of the automatic stay, but instead of protecting the debtor, it protects co-signers or co-obligors in particular ways.

Can I file Chapter 13 Bankruptcy after a recent Chapter 7?

Occasionally, chapter 13 bankruptcy cases are filed by individuals who recently filed chapter 7 and obtained a chapter 7 discharge. As I noted in a post on filing second bankruptcy cases, a discharge in the chapter 13 case is unavailable unless 4 years have passed since the chapter 7 case was filed. However, chapter 13 can still be used adjust payment schedules, even without a discharge.

What is a violation of the automatic stay?

One powerful benefit of the bankruptcy process is the automatic stay, which prevents a wide range of collection activity. The automatic stay allows the bankruptcy case to run its course without creditors and other parties unravelling its effectiveness with out-of-bankruptcy collection activities. Willful violations of the stay can result in actual damages, attorneys' fees, and occasionally punitive damages.

How is the chapter 7 trustee paid?

There are basically three sources of compensation for a chapter 7 trustee: (1) $61 out of the $306 filing fee the debtor paid to file the case with the bankruptcy court; (2) compensation for making distributions to creditors; and (3) attorney's fees charged against the bankruptcy estate. In a no-asset chapter 7, where the debtor has claimed all of his or her property as exempt and there are no other recoveries to be had for benefit of creditors, only the first source of compensation is available.

Can a debtor object to a proof of claim?

When a creditor wants to assert a right to be paid in a bankruptcy proceeding, it files a proof of claim with the bankruptcy court. In general, these claims are treated as valid unless objected to. Whether the debtor may (or even should) object to a claim depends on the type of bankruptcy case.

What is Chapter 13 Payroll Deduction?

Almost every chapter 13 plan involves a monthly payment to the standing trustee, which is in turn distributed to creditors. The two primary ways the monthly payment can be made is either by directly paying the trustee (e.g. mailing a check) or by having an employer withhold the payment from each paycheck.

What are PACER and CM/ECF?

The federal courts provide electronic case management, case filing, and case access for federal cases, including bankruptcy cases. Using CM/ECF, bankruptcy attorneys file petitions and other papers for near-immediate access by the court and other parties. The software also allows the court's staff to manage the docket and distribute orders of the court. PACER provides nationwide access to public federal court dockets and papers. Access charges and limited search abilities mean that most PACER users are interested parties and not casual browsers.

Where is my Raleigh meeting of creditors held?

Each bankruptcy case has a section 341 meeting of creditors, where the bankruptcy trustee inquires with the debtor about his or her bankruptcy petition. Attendance at this meeting is an essential part of completing the bankruptcy process.


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