Married persons have to gather this information for their spouse regardless of whether they are filing a joint petition, distinct individual applications, or even if only one spouse is filing. In a situation where one spouse files, the income and expenses of the non-filing spouse are required so that the court, the trustee and creditors can examine the household’s financial situation.
On the list of schedules that an individual debtor will filethere is a schedule of “exempt” property. The Bankruptcy Code allows an individual debtor (4) to shield some property against claims of creditors because the device is exempt under federal bankruptcy law or in the laws of the debtor’s home state. 11 U.S.C. – 522(b). Many states have made good use of a provision in the Bankruptcy Code that enables each state to adopt a unique exemption law instead of the federal exemptions. In other jurisdictions, the individual debtor uses the option of deciding between a federal package of exemptions or the exemptions that are available under state law. Thus, whether or not certain property can be exempt and may be kept by the debtor is frequently a question of state law. The debtor should consult an attorney at law to know the exemptions available in the state where the debtor lives.
Submitting a petition under chapter 7 “automatically stays” (stops) a great number of collection measures versus the debtor and the debtor’s property. 11 U.S.C. – 362. But filing the petition fails to stay specific kinds of decisions listed under 11 U.S.C. – 362(b), and the stay may just be effective limited to a few days in a few instances. The stay arises by operations of law and necessitates no judicial action. In the event that the stay is in effect, creditors typically might not begin or keep on suits, salary garnishments, and even cell phone calls asking for payments. The bankruptcy clerk gives notice of the bankruptcy case to all creditors whose names and addresses are provided by the debtor.
Between 20 and 40 days once the petition is submitted, the case trustee (described below) will hold a conference of creditors. In the event the U.S. trustee or bankruptcy administrator (5) schedules the meeting in a place that does not have regular U.S. trustee or bankruptcy administrator staffing, the gathering may be held no greater than 60 days after the order for relief. Fed. R. Bankr. P. 2003(a). During this meeting, the trustee puts the debtor under oath, and the trustee and creditors will inquire. The debtor must be present before the gathering and answer questions relating to the debtor’s financial affairs and property. 11 U.S.C. – 343. In case a couple have filed a joint petition, they together must go to the creditors’ meeting and respond to questions. Within 10 days of the creditors’ meeting, the U.S. trustee will report to the court if the case ought to be presumed to become an abuse beneath means test described in 11 U.S.C. – 704(b).
It is important for the debtor to cooperate with the trustee and to supply any financial data or files that the trustee asks. The Bankruptcy Code expects the trustee to ask the debtor questions at the meeting of creditors to make certain the debtor is aware of the potential outcomes of seeking a discharge in bankruptcy for instance the impact on history of credit, the ability to file a petition under a distinct chapter, the result of receiving a discharge, and the effect of reaffirming a debt. Some trustees make available written details on these topics at or leading to a meeting so the debtor understands this information. In order to preserve their independent judgment, bankruptcy judges are banned from attending the meeting of creditors. 11 U.S.C. – 341(c).
As a way to accord the debtor absolute relief, the Bankruptcy Code empowers the debtor to convert a chapter 7 case to a case under chapter 11, 12, or 13 (6) as long as the debtor is a candidate to be a debtor underneath the new chapter. However, a condition of the debtor’s voluntary conversion would 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 convert the case consistently from one chapter to another.
For help with an Athens Georgia bankruptcy, find an Athens bankruptcy lawyer. An Athens bankruptcy attorney could give you the help you need.
