Bankruptcy can be a complicated endeavor. However, when filed with the representation of a qualified and experienced bankruptcy attorney, it is a relatively simple process that can take as little as four months. However, bankruptcy law mandates that debtors meet certain requirements before they receive their fresh start. Thus, bankruptcy is more than filing the petition for relief.
Bankruptcy provides a fresh start for Americans with financial problems. However, there is a cost, which is relatively low, to starting anew through bankruptcy. Debtors who enter the American bankruptcy system must provide the U.S. Bankruptcy Court, the bankruptcy trustee, and creditors with some evidence that they are qualified to file bankruptcy. This means that debtors are not discharging the obligations to pay a debt when they actually have the means, i.e., income and assets, to repay it.
Thus, to ensure that debtors are not ridding themselves of debts that they can pay, debtors must file documentation that provides a snapshot of their financial picture. And they must provide all this information under penalty of perjury. Debtors must submit proof of income, such as pay stubs and tax returns, and a list of all their assets and liabilities.
Bankruptcy debtors are required to meet with their bankruptcy trustee at what is known more commonly as a “341 meeting,” but this is technically a meeting of the debtor’s creditors. Over 95% of the time, no creditors appear at a Chapter 7 bankruptcy case “341 meeting.”
While there’s more to bankruptcy than filing a petition, keep the following in mind:
- Most Chapter 7 cases are “no-asset” cases, which means that there is no property for the trustee to take and sell.
- Most bankruptcy attorneys have software that can enter, edit, and organize a debtor’s relevant information in a relatively short amount of time.
- Debtors must only appear once “in court” at a meeting of creditors where it is highly likely that no creditors will make an appearance. If so, an experienced bankruptcy attorney can help any debtor answer all relevant questions.
Theron Morrison has helped 8,000 people file bankruptcy and gain a fresh start. He has helped over 20,000 Utah residents deal with all types of financial difficulties caused by various severe and tragic events. Talk to the Morrison Law Group about your Chapter 7 or Chapter 13 bankruptcy options. Call 801.456.9933 today to schedule a FREE consultation. We have locations in Ogden, Logan, Sandy, and St. George to serve the residents of the counties of Weber, Cache, Salt Lake, Utah, Morgan, Davis, Washington, and surrounding areas.