Though declaring bankruptcy might be considered a significant event in someone’s life. Bankruptcy proceedings are generally uncomplicated affair if you have a skilled New York Bankruptcy Attorney representing you.
The qualifying criteria and the process differs according to the type of Bankruptcy an individual is filing Chapter 7 or Chapter 13.To qualify for Chapter 7 a debtor must pass means test and often those who can’t qualify for chapter 7, qualify for chapter 17 which requires the debtor to show that have income to pay off most of their debts during the bankruptcy.
Whether it’s a Chapter 7 bankruptcy or a Chapter 13 Bankruptcy being filed, most of the processes involved are taken care of by the debtor’s attorney. A debtor needs to appear before bankruptcy judge ONLY,
- Chapter 7 – If an objection is raised in the case against the debtor
- Chapter 13 – At a Plan Confirmation Hearing
If you are being represented by an experienced New York Bankruptcy attorney, the extensive and complicate process is made seamless and the only meeting that you need to attend is the ‘341 Meeting’ or in legal Parlance – meeting of creditors, the reason why it’s called meeting of the creditors is because section 341 of the Bankruptcy Code requires that the debtor attend this meeting in order to answer questions by the creditors regarding debts and property though most of the times no questions are raised and the debtor only needs to affirm that they have read and approved the bankruptcy petition and plan. It is mandatory to bring photo identification and proof of one’s social security number at a 341 meeting.
341 meetings for both Chapter 7 and Chapter 13 are set for at least 21 days after the case has been filed but the maximum number of days within which the meeting will take place after the case has been filed differ, which is 40 for Chapter 7 and 50 for Chapter 13.
The common questions asked by the trustee of a chapter 7 Bankruptcy in a 341 meeting differ from those asked by the trustee of a chapter 13 Bankruptcy.
While creditors who have provided loans for house or vehicle generally appear in a Chapter 7 Bankruptcy 341 meeting apart from other creditors who appear to ensure that the case has been filed in good faith, it’s fairly uncommon for a creditor to appear in a chapter 13 Bankruptcy though they are allowed to as most of the times the creditors involved in a chapter 13 bankruptcy case file an objection to the Chapter 13 plan and settle it through the attorney representing the debtor.
The major difference between a Chapter 7 and Chapter 13 Bankruptcy proceeding lies is in regards to the asset of the debtor. While in a chapter 7 Bankruptcy debtors assets are sold or liquidated to pay off creditors In a Chapter 13 Bankruptcy the trustee doesn’t care regarding non-exempt property as there is a commitment from the debtor to pay the debts during the period of bankruptcy.
Maxwell Law Firm, PLLC assists clients with debt settlement, foreclosure defense, tax collection defense, filing for chapter 7 and chapter 13 bankruptcy and mortgage home loan modifications in New York, Brooklyn, Queens and Nassau County. Contact us and speak to our competent and experienced New York Bankruptcy Attorney at 718-701-0095