Chapter 7
When you file a Chapter 7 Bankruptcy, you file a Bankruptcy Petition that lists everything you own, who you owe, what you earn and what your expenses are.
Your case is then assigned to a Trustee.
The Trustee assigned to your case’s job is to get money for your creditors.
That is done by seeing if you own anything that can be sold for a profit to pay them and by seeing if you have any money left after your monthly expenses are paid.
You will be scheduled for a “meeting of creditors” a hearing known as a 341 hearing.
At that hearing you will testify before your Trustee about your assets, income and expenses.
At the end of your hearing, your Trustee has 60 days to file a formal asset report with the court – either they find assets to sell or they file a no asset report. With certain exceptions, usually you would not file a bankruptcy unless you know that the Trustee is going to file a no asset report. The no asset report is the trigger to the bankruptcy court that you have no money, nothing to sell and your debts should be discharged.
By using The Law Offices of Gregory A Flood, we are experienced in analyzing your finances and income to ensure that if you file a Chapter 7 that you can in fact protect your assets and income. Nothing is worse than attending a hearing and seeing a debtor lose an asset that could have been protected with prudent planning.
Chapter 13
In a Chapter 13 your case is also assigned to a Trustee. However, a Chapter 13 is premised upon you having un-exempt assets to protect or have excess income after expenses that you must pay.
You begin by filing a Chapter 13 plan. This is how you pledge to make your payments.
During this time, your creditors file a Proof of Claim to be part of your payback plan.
You then have a meeting of creditors. The Trustee at a Chapter 13 meeting of creditors looks at your income and sees if you have the ability to make the future payments.
You then have a hearing on Confirmation. This hearing is with the Chapter 13 Trustee and the Judge assigned to your case. The purpose of the hearing is to see if the Trustee recommends putting your Chapter 13 plan in place. If the Trustee recommends confirming your plan, the judge will confirm it and you make your payments. If the Trustee does not recommend confirming the plan most times the judge will agree with the Trustee and will deny confirmation and dismiss your case.
Chapter 13 cases are very difficult and most of them fail either because you can not propose an acceptable plan or after it is confirmed, you can not make the payments.
We have filed numerous Chapter 13 cases and know how to get cases confirmed. Please contact the Law Offices of Gregory A Flood to see if you qualify for a Chapter 13.