When you file bankruptcy, the court will appoint a trustee to your case. The trustee is there to protect the interests of the creditors. Within a few weeks of submitting your bankruptcy paperwork to the court, the trustee will send you and your creditor's notice of the time and date of the meeting of the creditors. Also, this notice will serve to inform of the automatic stay, letting your creditors know all collection attempts against you must stop.
Meeting of the Creditors
The meeting of the creditors is also called the 341 meeting. 341 refers to the bankruptcy chapter it covers. Your trustee will conduct this meeting with you, your spouse if you are filing jointly, your attorney, and any creditors. Rarely do creditors attend this meeting. The trustee will ask you questions during an informal meeting, usually lasting 5 to 30 minutes. The trustee will go over your financial paperwork and verify everything is correct.
Chapter 7 Bankruptcy
During a Chapter 7 bankruptcy, the trustee will evaluate your property and any non-exempt assets. These assets may be eligible to be sold to pay creditors. The trustee collects the property, sells it, and then distributes the money to your creditors. It is important you work with a qualified attorney to assist you in this process to determine which of your assets may be exempt or recovered in your bankruptcy discharge.
Chapter 13 Bankruptcy
In a Chapter 13 Bankruptcy, the trustee will collect your monthly payment and disperse it to your creditors. If you fail to make the payments the trustee will ask the court to dismiss your case. Chapter 13 can offer better asset protection. Be sure to discuss all of your options when deciding to regain financial control through a bankruptcy filing.
Proof of Claim
In order to get paid, your creditors must file a proof of claim with the bankruptcy court. A written objection to the claim can come from you or your trustee. An objection can be due to being overcharged or having a defense to owing the money.
If you have any questions about how bankruptcy can help you with your financial issues, contact a Roseville bankruptcy attorney today.