Will I Need to Meet with Creditors?
At the meeting of creditors, you will be examined under oath in the presence of the bankruptcy trustee, certain creditors, and me, if you are represented by Gross & Patterson, LLC. In either Chapter 7 or Chapter 13, the debtor has to be examined once.
In a Chapter 7 case, the bankruptcy trustee represents the unsecured creditors, and it is his or her job to see if you have any non-exempt assets, which can be distributed to the creditors. Since most Chapter 7 debtors do not have non-exempt assets, the trustee will list the case as a no asset case and the bankruptcy judge will issue an order granting the debtor a discharge.
It is rare that creditors show up at the meeting of creditors. Instead, the trustee examines the debtor under oath regarding the items that are contained in the bankruptcy petition, which are a debtors assets and liabilities and income and expenses. The trustees work in a professional manner and are not there to make you feel badly about the circumstances that caused you to file for relief under Chapter 7 of the Bankruptcy Code.
If your case is a Chapter 13, the bankruptcy trustee will thoroughly examine your petition as well as your repayment plan, and may require amendments be made prior to approval. Since Chapter 13 involves repayment of portions of debt, or even complete repayment of debt, there may be substantial negotiating with creditors before final debt relief is granted.
Chapter 13 affords the best remedy for saving your home from a pending foreclosure. Generally, you will not lose your home if your Chapter 13 plan provides for payment of the current monthly mortgage payments, plus payments of the arrears spread over the term of the plan.
In a chapter 11, a meeting of creditors is conducted by an attorney for the Office of the United States Trustee and will go into great detail regarding your financial situation. It is also likely that creditors will attend a chapter 11 meeting of creditors.
WHAT TO EXPECT?
If you need skilled bankruptcy advice, contact me today to schedule a FREE initial consultation. Telephone consultations are also available.
Gross & Patterson, LLC provides bankruptcy representation to clients throughout greater Western Pennsylvania, including the communities of Washington, Greensburg, Beaver, Butler, Uniontown, Kittanning, Indiana, Erie, Somerset, Johnstown and counties of Allegheny and Westmoreland.