Debtors have an obligation to appear and be examined under oath at a Meeting of Creditors. The Bankruptcy Trustee conducts the §341 Meeting of Creditors which is open to creditors who wish to examine the debtor in relationship to the Bankruptcy Petition, the Schedules ‘A’ through ‘J’, the Statement of Financial Affairs, the contractual agreement between the parties and in Chapter 13 cases. For more information please visit http://buzzwiser.net/tag/executives.
The §341 Meeting of Creditors is usually held within 25 to 45 days of the Bankruptcy Petition being filed. The petitioner’s attorney of record or their legal representative is also required to appear at the §341 Meeting of Creditors in the representation of their client. Generally creditors do not appear so the examination by the trustee is usually 5 to 7 minutes. For more information regarding Chapter 7 §341 Meetings of Creditors. For more information regarding “Chapter 13 §341 Meeting of Creditor” visit http://buzzwiser.net/tag/nutrisystem-cookbook.
What’s a Discharge?
A Discharge Order is the order issued by the court which permanently prohibits creditors from taking any actions to collect a ‘discharged’ debt. Some unsecured creditors may not be discharged. See Chapter 7 ‘Non-Dischargable’. In a Chapter 7 bankruptcy priority creditors are non-dischargeable and must still be paid after bankruptcy. Secured creditors must also be paid otherwise they’ll pursue their legal rights to the collateral once the bankruptcy discharge has been entered.
In a Chapter 13 all priority and secured creditors administered by the trustee through the Plan will be totally satisfied thusly prohibiting them from any further action upon the conclusion of the Chapter 13 case. However even in a Chapter 13 there are some creditors that may not be discharged upon the completion of the Plan. Also see Chapter 13 ‘Non-Dischargeable’. For information regarding a bankruptcy Discharge.
What does it mean if a case is Dismissed?
A Dismissal is the closing of a bankruptcy case prior to its completion. Upon the dismissal of a case the ‘Automatic Stay’ is terminated which allows the creditors to once again pursue the debtor or the debtors’ property for collection of a debt based on the terms of their contract and the collection laws under which they must comply. A dismissal is usually the result of not complying with the bankruptcy process, not passing the Chapter 7 Means Test or not meeting the payment requirements of a Chapter 13 Plan.
What is a Reaffirmation Agreement?
Reaffirmation agreements involve Chapter 7 matters and are not a part of a Chapter 13 proceedings. These are agreements prepared by a secured creditor who is proposing that the debtor re-enter into a renewal of a contractual agreement dated after the bankruptcy filing to re-pay a secured creditors obligation in order for the debtor to continue to retain the security. Most debts which a secured creditor wants the debtor to reaffirm must be approved by the debtor, their attorney and the Bankruptcy Court. Once a ‘Reaffirmation Agreement’ has been signed by all parties, the debt becomes non-dischargeable since it’s an alteration of a preexisting contractual agreement signed after the filing of the bankruptcy case.