1. What is The Role of the Bankruptcy Trustee?

2. What is Notice of Commencement of Case?

3. What is the Meeting of Creditors?

4. What is the difference between secured and unsecured debt?

5. What is a Discharge Notice?

6. What options does a debtor have in regards to secured consumer debt?

7. How long is bankruptcy on my credit report?

8. What is a Chapter 13 Bankruptcy plan?

9. Are Chapter 13 plans are based on the debtors’ income and assets?

10. What is the difference between secured and unsecured debt?

11. What do I need to begin the bankruptcy process?

12. What happens if one spouse files for bankruptcy and not the other?

13. Will I lose my home if I file for bankruptcy?

14. What can I keep if I file bankruptcy?

15. Will I lose my retirement accounts or payments from social security?

16. Can I change from one chapter of bankruptcy to another?

17. How often can you file for bankruptcy?

18. Can all types of debt be discharged?

1. What is The Role of the Bankruptcy Trustee?
The court appoints a bankruptcy trustee, whose job it is to review the bankruptcy filing, conduct the meeting of creditors, review the debtor's eligibility for a discharge, liquidate (sell) any non-exempt assets, and distribute the proceeds to creditors under a distribution scheme set forth in the Bankruptcy Code.

2. What is Notice of Commencement of case?
Usually within 1 to 2 weeks after the bankruptcy filing, the bankruptcy court clerk will send out a notice to all creditors, the debtor and the debtors’ attorney. That notice provides a myriad of important information, including the fact of the commencement of the case, the case number, a description of the automatic stay, the date set for the meeting of creditors, the deadline for filing complaints objecting to dischargeability of debts and the discharge of the debtor, the identity of the debtors’ lawyer, the identity of the bankruptcy trustee, whether or not creditors should file claims with the court, and if so, the deadline for the filing of such claims. Typically, creditors are given 90 days from the bankruptcy filing within which to object to the debtors discharge or to the dischargeability of a particular debt.

3. What is the Meeting of Creditors?
The debtor is required to attend a meeting of creditors, also known as a Section 341 meeting. The meeting typically is held about 1 month after the filing of the bankruptcy, and is conducted by the trustee rather than the bankruptcy judge. The debtor is put under oath, and the creditors have the right to ask the debtor about the debtors assets and liabilities. In most cases, the creditors do not bother to appear at the meeting of creditors, and the questioning is done by the trustee. In most instances, the meetings are quite brief, and often limited to the debtor simply confirming that the bankruptcy papers contain a true and accurate listing of all of his assets and debts. If complications arise, such as litigation with a creditor or the trustee, the debtor may have to attend a court hearing or additional examinations, and he will receive such notice from the court or his attorney.

4. What is a Discharge Notice?
If there are no objections to the debtors discharge, then the debtor receives a written notice from the court, entitled "Discharge of Debtor", stating that he has been discharged of all of his dischargeable debts. The discharge notice is usually sent out within or week or two after the expiration of the deadline for filing complaints.

5. What options does a debtor have in regards to secured consumer debt?
If the debtor has consumer debts which are secured by property of the estate, then the debtor has several options, which typically must be exercised within 45 days after the bankruptcy filing, and which is reflected in a paper filed with the bankruptcy court called "statement of intention"

• Surrender the collateral to the secured creditor, make no more payments, and wipe out the debt
• Formally reaffirm the debt via a written reaffirmation agreement which is filed with the court. In this instance, the debtor keeps the collateral and keeps making payments in either the full amount of the debt or some agreed-upon reduced amount, but is liable to the secured creditor in the event of a default in payment;
• Redeem the collateral from the debt by paying the secured creditor the fair market value of the collateral; or
• Avoid (cancel) the lien, with the debtor keeping the property and making no further payments. This typically can be done only in cases where the debtor has put up household goods as collateral for a loan (other than a loan to purchase the goods).

Also, it sometimes is possible for the debtor to keep the collateral, keep making the payments, and not officially reaffirm the debt. In this instance, if the debtor defaults, the secured creditor will have the right to proceed with repossession of the property, but will not be allowed to hold the debtor personally liable if the property is not of sufficient value to pay off the debt.

6. What type, or chapter, of bankruptcy should I file?
Consumers typically file Chapter 13 bankruptcy, where repayment is made to creditors, or under Chapter 7 where the debts are discharged. Each chapter of bankruptcy spells out:

• What bills can be eliminated
• How long payments can be stretched out
• What possessions you can keep
• Additional information

the selection of which type to file depends on your particular circumstances and whether or not there are assets available to repay all, or part, of the debts owed. Bankruptcy laws can be tricky and involved, so determining if you should bankrupt and what type of bankruptcy you need should be made with the input of an experienced bankruptcy lawyer.

7. How long is bankruptcy on my credit report?
The fact that a debtor has filed bankruptcy can appear on credit reports for 10 years. If the debtor was delinquent in his bill payments, then he may have already had bad credit prior to the bankruptcy. If the debtor receives a discharge of his debts, then he will often be in a good position to pay his current bills, and may be able to get new credit. A debtor is entitled to receive a discharge in bankruptcy once every 6 years.

8. What is a Chapter 13 bankruptcy plan?
The Chapter 13 debtor files a "plan", which provides for repayment of debts over a 3-5 year period. The plan is usually a form, one page in length. The court appoints a Chapter 13 trustee, whose job it is to receive payments from the debtor, and to disburse funds to creditors. The Chapter 13 trustee acts basically as a disbursing agent, and not as a liquidating trustee. The debtor remains in possession of all of his property, exempt and non-exempt. Upon completion of payments under the plan, the debtor typically receives a discharge of his debts, even if he has paid less than 100% of the debt, with some exceptions. The first payment under the plan is due 30 days from the date the plan was filed.

9. Are Chapter 13 Plans Based on the Debtors Income and Assets?
Most Chapter 13 plans provide for only a partial repayment of debt. To be approved by the court, the debtor's plan must provide for the debtor to pay to the Chapter 13 trustee a sum equal to the debtor's disposable income for at least 36 months, after taking into account the debtor's regular monthly living expenses. Also, the plan must pay the creditors at least as much as those creditors would receive if the case were in Chapter 7. Thus, the amount that will be repaid to creditors is dependent upon the debtor's income and assets. The debtor's plan also needs to be filed in good faith.

10. What's the difference between secured and unsecured debt?
Secured debt is a creditor's claim that's secured by a lien of some type in your property, either by your agreement or involuntarily such as with a court judgment or taxes. A creditor can generally claim the property that secures the debt in the event of bankruptcy. Unsecured debt is not tied to any type of property, leaving the creditor without any claim to property.

11. What do I need to begin the bankruptcy process?
You need to compile a listing of the past and present debts you have. The petition in a bankruptcy filing includes schedules of assets and liabilities as well as a statement of financial affairs. These documents are filed with the bankruptcy court, along with payment of the filing fee.

12. What happens if one spouse files for bankruptcy and not the other?
If one spouse files and the other does not, the one who does not file could possibly be responsible for the debts. Check this out carefully before filing.

13. Will I lose my home if I file for bankruptcy?
Possibly. The factors that impact your ability to keep your home are:

• The state you are in and the exemptions allowed
• The status of your loan (current or in foreclosure)
• The type of bankruptcy you're filing (Chapter 13 provides more protection than Chapter 7 as long as payments are current)

14. What can I keep, if anything, if I file bankruptcy?
Exemptions allow an individual to "exempt", or keep, certain kinds of property. State law defines what assets are considered "exempt," but typically include:

• Jewelry
• Vehicles up to a certain amount
• Equity in a home up to a certain amount
• "Tools of the trade" or tools and equipment necessary to allow the individual to continue working

15. Will I lose my retirement accounts or payments from social security?
Generally, no. Retirement accounts that are ERISA-qualified aren't considered property of an estate and cannot be taken. Social Security benefits are generally protected from assignment, or garnishment for debts in bankruptcy. The Social Security Administration's responsibility for protecting benefits against legal process and assignment usually ends when the beneficiary is paid. Once paid, the benefits continue to be protected only as long as they can be identified as Social Security benefits. For example, money in a bank account where the "only" deposits into the account are direct deposits of Social Security benefits are "identifiable" and generally protected.

16. Can I change from one chapter of bankruptcy to another?

Generally, you can convert a case once to any other chapter for which you are eligible. The request to convert can be a simple one-sentence document. There are issues to watch when going from on chapter to another, though. For example, when moving from a Chapter 13 to a Chapter 7, you'll need to review whether you have acquired items that will now be considered property of the estate under Chapter 7 that wasn't part of the previous filing.

17. How often can you file for bankruptcy?
Chapter 7 bankruptcy can be filed every 8 years from a previous chapter 7 filing or 6 years from a prior chapter 13 filing. Chapter 13 can be filed 4 years from a prior Chapter 7 filing or 2 years from a prior Chapter 13 filing. Filing bankruptcy can adversely affect your ability to obtain future credit, rent housing and even negatively impact a job application, so any decision to file must be carefully considered.

18. Can all types of debt be discharged?
No. The debts that cannot be discharged vary slightly between the different chapters of bankruptcy. Generally, the following cannot be discharged:

• Debts for taxes owed to local, state or federal agencies
• Debts for money, property, services, or an extension, renewal, or refinancing of credit, which was obtained fraudulently
• Debts which were neither listed nor scheduled or which the debtor waived discharge
• Debts which are owed to a spouse, former spouse, or child of the debtor, for alimony, maintenance, or support of such spouse or child, in connection with a separation agreement, divorce decree or other order of a court of record
• Debts owed for willful and malicious injury by the debtor to another person or property owned by another.
• Debts for government-sponsored educational loans, unless it can be shown that repayment will cause an undue hardship
• Debts for death or personal injury caused by the debtor's drunk driving or from driving while under the influence of drugs or other substances
• Debts incurred after a bankruptcy was filed