What Happens At The 341 Meeting Of Creditors In A Chapter 7 Bankruptcy?
The 341 Meeting of Creditors is a very informal meeting. The creditors almost never come to the hearing. The trustee assigned to your case will ask a series of questions that usually takes approximately five minutes. They are looking to see whether or not you have the ability to pay back your debt. The trustee is looking for any assets valued higher than your exemptions. Also, the trustee is looking for any assets that may be coming to you that could pay on this debt, such as an inheritance or life insurance proceed. They are trying to find out if there is any way for your creditors to be paid.
What Other Options Do I Have If I Am Not Eligible For Chapter 7 Bankruptcy?
The best other option for most people who are not eligible for Chapter 7 Bankruptcy is the chapter 13 Bankruptcy, which is an income-based reorganization of debt. A lot of people who are not eligible for Chapter 7 end up paying very little back to their creditors, often pennies on the dollar. A Chapter 13 Bankruptcy can be a very good tool to use if you do not qualify for Chapter 7.
What Are The Main Differences Between A Chapter 7 And A Chapter 13 Bankruptcy?
One of the main differences is the amount of time it takes. The Chapter 7 Bankruptcy takes approximately four months, whereas Chapter 13 takes three to five years. The next big difference is Chapter 7 Bankruptcy usually does not require repayment of any debt, while Chapter 13 does. Additionally a Chapter 13 Bankruptcy is a reorganization of debt and Chapter 7 is an elimination of debt.
There are advantages to a Chapter 13 Bankruptcy that do not exist in a Chapter 7. For instance, some people may be behind on their mortgage. In a Chapter 13, you are eligible to catch your mortgage up over that five-year period, while in Chapter 7, you are not. Also, in cases with two mortgages, in a Chapter 7 you would have to keep both mortgages if you are keeping your house. In a Chapter 13, if you have two mortgages, many times it is possible to get rid of the second mortgage and only pay on the first. A Chapter 13 also offers ways to reduce the amount you pay on a car if you have a lien on it. Principle, interest, or both may be reduced. In a Chapter 7, the creditor/lien holder is usually paid whatever is owed under the contract.
Why Do I Need An Attorney To Help Me With My Chapter 7 Bankruptcy Case?
The difficulty with handling a bankruptcy of Chapter 7 on your own is the complexity of the bankruptcy code. Even for attorneys who are skilled in the law, the code is so complicated that they should really focus their practice on bankruptcy, in order to navigate correctly through the system. If an individual files a bankruptcy and anything they do is deemed to be wrong or fraudulent, they are facing an FBI investigation and up to five years in prison and up to a $250,000 fine.
What Sets You And Your Firm Apart In Handling Bankruptcy Cases?
Our vast level of knowledge and the number of cases we have handled set up apart. I have been practicing bankruptcy law since 1999, my father since 1977. I also worked for him from 1991 to 1999. It is similar to someone who has a heart condition; if you have a heart condition, you do not want to go to a general practitioner, you want to go to a cardiologist. In a bankruptcy case, you want an attorney who focuses in bankruptcy. This is your financial health and you need to place it in the hands of someone who is able to help you. I know the ins and outs of bankruptcy and I can navigate you through each and every situation.
For more information on 341 Meeting Of Creditors In A Chapter 7, a free initial consultation is your next best step. Get the information and legal answers you are seeking by calling (937) 247-6447 today.
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