Should I Fear The Chapter 7 Bankruptcy Trustee?
Many people filing Chapter 7 bankruptcy fear meeting with the bankruptcy trustee.
There has been a lot of misinformation floating around out there about how tough and uncaring the bankruptcy trustee is when it comes to hearing an individual's bankruptcy case at the 341 meeting, or meeting of the creditors as it is also called.
The debtor's also fear coming face to face with their creditors who will also be at this meeting to interrogate them about neglecting to pay their bills.
These scenarios are far from the truth.
Bad information such as this is probably spread by the credit industry to intimidate people from filing bankruptcy and walking away from the debt.
If that happens then the creditors are out the money, and they don't want that to happen.
First of all, rarely do any creditors ever attend the 341 meeting.
The only reason that this would happen is if a creditor believed a certain debt was incurred by fraud.
An example of such is, if a debtor knowingly went out and bought a "luxury item" like a flat screen TV, electronics, or jewelry and then filed bankruptcy.
The trustee also looks at things like this unfavorably and would then be hard on the debtor, looking into their bankruptcy petition with a fine tooth comb to see if the debtor is hiding anything else.
As long as the debtor is honest and not hiding anything, the 341 meeting will go smoothly.
The debtor will attend this meeting with their attorney to represent them and make sure everything is in order.
The 341 meeting usually lasts about ten to fifteen minutes.
The trustee makes sure the bankruptcy petition is in order and asks the debtor a few simple questions like: Did you list all of your debts? Did you include all of your assets? Is all of the information in the petition true and correct? Do you need to make any changes to your petition? The 341 meeting and the Chapter 7 bankruptcy trustee is really pretty straight forward.
If you think about it from the standpoint of the Chapter 7 bankruptcy trustee, they have a dirty job in consumer cases.
Sometimes they have to be harsh on dishonest debtors to do their job correctly and fairly.
If debtors play by the rules then the 341 meeting will be quite painless.
The important thing to realize is that the trustee is not there to make people feel guilty or bad about having to file bankruptcy.
Everyday they meet with normal individuals that due to various reasons, got into financial trouble and need help and a way out.
The trustee usually understands that most people regret having to file bankruptcy and they try to make the process as painless as possible.
The trustee's job is to ensure that the creditors get paid what they are entitled to if there are any assets unprotected in the case that can be sold.
The Chapter 7 bankruptcy trustee is also there to ensure that the debtor has completed everything that they are required to do.
There were over 1 million people that successfully filed for bankruptcy last year with the same numbers expected this year.
Bankruptcy is not a punishment, rather it was designed to help financially overwhelmed individuals gain a fresh start and get back on the road to becoming debt free.
The Chapter 7 bankruptcy trustee is just a necessary part of the team to help accomplish that goal.
There has been a lot of misinformation floating around out there about how tough and uncaring the bankruptcy trustee is when it comes to hearing an individual's bankruptcy case at the 341 meeting, or meeting of the creditors as it is also called.
The debtor's also fear coming face to face with their creditors who will also be at this meeting to interrogate them about neglecting to pay their bills.
These scenarios are far from the truth.
Bad information such as this is probably spread by the credit industry to intimidate people from filing bankruptcy and walking away from the debt.
If that happens then the creditors are out the money, and they don't want that to happen.
First of all, rarely do any creditors ever attend the 341 meeting.
The only reason that this would happen is if a creditor believed a certain debt was incurred by fraud.
An example of such is, if a debtor knowingly went out and bought a "luxury item" like a flat screen TV, electronics, or jewelry and then filed bankruptcy.
The trustee also looks at things like this unfavorably and would then be hard on the debtor, looking into their bankruptcy petition with a fine tooth comb to see if the debtor is hiding anything else.
As long as the debtor is honest and not hiding anything, the 341 meeting will go smoothly.
The debtor will attend this meeting with their attorney to represent them and make sure everything is in order.
The 341 meeting usually lasts about ten to fifteen minutes.
The trustee makes sure the bankruptcy petition is in order and asks the debtor a few simple questions like: Did you list all of your debts? Did you include all of your assets? Is all of the information in the petition true and correct? Do you need to make any changes to your petition? The 341 meeting and the Chapter 7 bankruptcy trustee is really pretty straight forward.
If you think about it from the standpoint of the Chapter 7 bankruptcy trustee, they have a dirty job in consumer cases.
Sometimes they have to be harsh on dishonest debtors to do their job correctly and fairly.
If debtors play by the rules then the 341 meeting will be quite painless.
The important thing to realize is that the trustee is not there to make people feel guilty or bad about having to file bankruptcy.
Everyday they meet with normal individuals that due to various reasons, got into financial trouble and need help and a way out.
The trustee usually understands that most people regret having to file bankruptcy and they try to make the process as painless as possible.
The trustee's job is to ensure that the creditors get paid what they are entitled to if there are any assets unprotected in the case that can be sold.
The Chapter 7 bankruptcy trustee is also there to ensure that the debtor has completed everything that they are required to do.
There were over 1 million people that successfully filed for bankruptcy last year with the same numbers expected this year.
Bankruptcy is not a punishment, rather it was designed to help financially overwhelmed individuals gain a fresh start and get back on the road to becoming debt free.
The Chapter 7 bankruptcy trustee is just a necessary part of the team to help accomplish that goal.
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