A Quick Review of the Process of a Chapter 7 Bankruptcy Case
In a time of economic uncertainty, many begin to look for options to resolve financial issues. Each individual’s situation is different and requires a careful analysis of the options and impacts each particular path may take. Today, Attorney, Jose Parra, explains the bankruptcy process in a Chapter 7 case.
As always, if you have any questions about your real estate, business, estate planning, or any other legal issue, please let us know by e-mailing managing shareholder Keith Dunnagan at kbdunnagan@bpelaw.com.
Also, remember that we do legal presentations for business and community organizations. If your group would like to schedule a presentation, please contact me to setup a date and time.
A Quick Review of the Process of a Chapter 7 Bankruptcy Case
By: Jose L. Parra, Esq.
As we continue our series dealing with Bankruptcy Law, the focus of this week’s article is on the overall process of a Chapter 7 Bankruptcy. Last week, we focused on the key considerations that an individual must have prior to deciding to move forward with a Chapter 7 Bankruptcy.
The overall purpose of a Chapter 7 Bankruptcy is to allow the debtor to receive a “fresh start.” In practical terms, the debtor is provided a discharge of certain respective debts that qualify under a Chapter 7 Bankruptcy.
A bankruptcy case begins with filing a petition with the respective federal court in your local federal district. The filing of the petition triggers a wide array of duties for the debtor filing for bankruptcy, which include filing and producing certain financial documents and proper disclosure forms. It is very important that the debtor provide all the necessary information and documents that need to be processed with the Bankruptcy court as a failure to cooperate can lead to a dismissal of the case.
After the bankruptcy petition is filed, an automatic stay under 11 U.S.C. § 362 gets imposed. In other words, the automatic stay refers to a temporary legal protection that prevents creditors from proceeding with collection efforts. It is important to note that this protection arises automatically after the petition is filed. The termination of the automatic stay ends upon the entering of an order or it expires on its own.
Approximately, forty (45) days after the initial filing of the petition, the debtor conducts the “Meeting of the Creditors,” which is conducted pursuant to 11 U.S. Code §341. At the “Meeting of Creditors,” the trustee – that is, the key player that is appointed by the court and has the duty to oversee the bankruptcy process – conducts an interview of the debtor under oath. The debtor is further required to cooperate with the trustee and provide any and all documents or information requested.
After the “Meeting of Creditors,” the debtor must provide a credit education certificate demonstrating compliance with certain educational components necessary to finalize the petition. Moreover, sixty (60) days after the “Meeting of Creditors,” the deadline for creditors to object ends.
Overall, a bankruptcy case can be administered expeditiously and swiftly assuming the debtor complies by disclosing all the necessary information and documentation to finalize the petition. The attorneys at BPE Law Group, P.C. are more than able to assist with the filing of a Chapter 7 Bankruptcy.
The information contained in this article is for informational purposes only and not to be construed as legal advice. If you have questions, you should seek competent legal representation to assist you.
—-Spanish Translation—-
Un Sobrepaso de un Caso de Bancarrota Conforme al Capítulo 7 de los Códigos Federales de Bancarrota
Translated By; Jose L. Parra, Esq.
En continuación con nuestra serie sobre bancarrota, nuestro enfoque esta semana es sobre el proceso completo de una bancarrota conforme a el capítulo 7 debido a los códigos federales que controlan. En la semana anterior, revisamos ciertas consideraciones principales que una persona debería tener antes de iniciar el proceso de una bancarrota conforme a el capítulo 7 de los códigos federales de bancarrota.
El propósito principal de una bancarrota debajo del capítulo 7 es ayudar a el deudor recibir un “nuevo empiezo.” En lo práctico, el deudor recibe una descarga de ciertas deudas que califican bajo una bancarrota conforme a el capítulo 7.
Un caso de bancarrota empieza cuando la petición se procesa con la corte federal en su distrito federal local. Este trámite crea varias obligaciones para el deudor, que incluyen completando y procesando con la corte cierta información financiera y documentos, en igual se requiere que ciertos formularios se completan y sean procesados con la corte. Es sumamente importante que el deudor cumpla con esta obligaciones y requisitos para evitar una despedida del caso involuntariamente.
Después que la petición para la bancarrota se procesa en la corte, una estancia legal se impone conforme al código federal 11 U.S.C. § 362. El efecto legal de esta estancia legal es que funciona como una protección legal temporaria que evita que un acreedor siga con sus metas de colectar contra el deudor durante la existencia de el caso de bancarrota. Es importante reconocer que esta protección se crea cuando la petición es procesada en la corte. Cuya protección temporaria o esta estancia legal se termina al momento cuando hay una orden jurídica declarando que termina o se vence de su propia manera.
Después de aproximadamente cuarenta y cinco (45) días después que se procesa la petición con la corte, el deudor debe participar en “La junta de Acreedores” que es dirigida conforme a el código federal 11 U.S.C. §341. En la junta de acreedores, el fideicomisario, que es apuntado por la corte para supervisar el caso de bancarrota, conduce una entrevista del deudor bajo juramento. El deudor debe de cooperar con el fideicomisario y producir todo los documentos e información que se pide.
Después de la junta de acreedores, el deudor debe mostrar un certificado que confirma que el deudor completo un curso educativo para cumplir con ciertos requisitos educativos para finalizar el caso. Sesenta (60) días después de la junta de acreedores, la fecha límite para procesar objeciones a la descarga de deudas de parte de los acreedores termina.
Un caso de bancarrota puede ser administrado en una manera eficaz y rápida suponiendo que el deudor cumpla con sus obligaciones para proveer la información y documentos necesarios para finalizar el caso. Los abogados y licenciados en BPE Law Group, P.C. son más que capaces de ayudar con procesar un caso de bancarrota conforme a el Capítulo 7 de los códigos federales de bancarrota.
La información contenida en este articulo es solamente para propósitos informacionales y no puede ser interpretado como asesoría legal. Si tienes preguntas, deberías consultar con un representante legal para ayudarte.
The attorneys of BPE Law Group, PC. have been advising our clients on real estate, business and estate planning issues for over 20 years and have assisted numerous clients in probate, business and real estate matters and have represented and advised brokers on their professional obligations as well as consumers on their rights. If you have questions concerning legal matters, give us a call at (916) 966-2260 or e-mail Keith at kbdunnagan@bpelaw.com. Our flat fee consult for new clients may get you the answers you need for the questions you have.
The information presented in this Article is not to be taken as legal advice. Every person’s situation is different. If you are facing a legal issue of any kind, get competent legal advice in your State immediately so that you can determine your best options.
In a time of economic uncertainty, many begin to look for options to resolve financial issues. Each individual’s situation is different and requires a careful analysis of the options and impacts each particular path may take. Today, Attorney, Jose Parra, explains the bankruptcy process in a Chapter 7 case.
As always, if you have any questions about your real estate, business, estate planning, or any other legal issue, please let us know by e-mailing managing shareholder Keith Dunnagan at kbdunnagan@bpelaw.com.
Also, remember that we do legal presentations for business and community organizations. If your group would like to schedule a presentation, please contact me to setup a date and time.
A Quick Review of the Process of a Chapter 7 Bankruptcy Case
By: Jose L. Parra, Esq.
As we continue our series dealing with Bankruptcy Law, the focus of this week’s article is on the overall process of a Chapter 7 Bankruptcy. Last week, we focused on the key considerations that an individual must have prior to deciding to move forward with a Chapter 7 Bankruptcy.
The overall purpose of a Chapter 7 Bankruptcy is to allow the debtor to receive a “fresh start.” In practical terms, the debtor is provided a discharge of certain respective debts that qualify under a Chapter 7 Bankruptcy.
A bankruptcy case begins with filing a petition with the respective federal court in your local federal district. The filing of the petition triggers a wide array of duties for the debtor filing for bankruptcy, which include filing and producing certain financial documents and proper disclosure forms. It is very important that the debtor provide all the necessary information and documents that need to be processed with the Bankruptcy court as a failure to cooperate can lead to a dismissal of the case.
After the bankruptcy petition is filed, an automatic stay under 11 U.S.C. § 362 gets imposed. In other words, the automatic stay refers to a temporary legal protection that prevents creditors from proceeding with collection efforts. It is important to note that this protection arises automatically after the petition is filed. The termination of the automatic stay ends upon the entering of an order or it expires on its own.
Approximately, forty (45) days after the initial filing of the petition, the debtor conducts the “Meeting of the Creditors,” which is conducted pursuant to 11 U.S. Code §341. At the “Meeting of Creditors,” the trustee – that is, the key player that is appointed by the court and has the duty to oversee the bankruptcy process – conducts an interview of the debtor under oath. The debtor is further required to cooperate with the trustee and provide any and all documents or information requested.
After the “Meeting of Creditors,” the debtor must provide a credit education certificate demonstrating compliance with certain educational components necessary to finalize the petition. Moreover, sixty (60) days after the “Meeting of Creditors,” the deadline for creditors to object ends.
Overall, a bankruptcy case can be administered expeditiously and swiftly assuming the debtor complies by disclosing all the necessary information and documentation to finalize the petition. The attorneys at BPE Law Group, P.C. are more than able to assist with the filing of a Chapter 7 Bankruptcy.
The information contained in this article is for informational purposes only and not to be construed as legal advice. If you have questions, you should seek competent legal representation to assist you.
—-Spanish Translation—-
Un Sobrepaso de un Caso de Bancarrota Conforme al Capítulo 7 de los Códigos Federales de Bancarrota
Translated By; Jose L. Parra, Esq.
En continuación con nuestra serie sobre bancarrota, nuestro enfoque esta semana es sobre el proceso completo de una bancarrota conforme a el capítulo 7 debido a los códigos federales que controlan. En la semana anterior, revisamos ciertas consideraciones principales que una persona debería tener antes de iniciar el proceso de una bancarrota conforme a el capítulo 7 de los códigos federales de bancarrota.
El propósito principal de una bancarrota debajo del capítulo 7 es ayudar a el deudor recibir un “nuevo empiezo.” En lo práctico, el deudor recibe una descarga de ciertas deudas que califican bajo una bancarrota conforme a el capítulo 7.
Un caso de bancarrota empieza cuando la petición se procesa con la corte federal en su distrito federal local. Este trámite crea varias obligaciones para el deudor, que incluyen completando y procesando con la corte cierta información financiera y documentos, en igual se requiere que ciertos formularios se completan y sean procesados con la corte. Es sumamente importante que el deudor cumpla con esta obligaciones y requisitos para evitar una despedida del caso involuntariamente.
Después que la petición para la bancarrota se procesa en la corte, una estancia legal se impone conforme al código federal 11 U.S.C. § 362. El efecto legal de esta estancia legal es que funciona como una protección legal temporaria que evita que un acreedor siga con sus metas de colectar contra el deudor durante la existencia de el caso de bancarrota. Es importante reconocer que esta protección se crea cuando la petición es procesada en la corte. Cuya protección temporaria o esta estancia legal se termina al momento cuando hay una orden jurídica declarando que termina o se vence de su propia manera.
Después de aproximadamente cuarenta y cinco (45) días después que se procesa la petición con la corte, el deudor debe participar en “La junta de Acreedores” que es dirigida conforme a el código federal 11 U.S.C. §341. En la junta de acreedores, el fideicomisario, que es apuntado por la corte para supervisar el caso de bancarrota, conduce una entrevista del deudor bajo juramento. El deudor debe de cooperar con el fideicomisario y producir todo los documentos e información que se pide.
Después de la junta de acreedores, el deudor debe mostrar un certificado que confirma que el deudor completo un curso educativo para cumplir con ciertos requisitos educativos para finalizar el caso. Sesenta (60) días después de la junta de acreedores, la fecha límite para procesar objeciones a la descarga de deudas de parte de los acreedores termina.
Un caso de bancarrota puede ser administrado en una manera eficaz y rápida suponiendo que el deudor cumpla con sus obligaciones para proveer la información y documentos necesarios para finalizar el caso. Los abogados y licenciados en BPE Law Group, P.C. son más que capaces de ayudar con procesar un caso de bancarrota conforme a el Capítulo 7 de los códigos federales de bancarrota.
La información contenida en este articulo es solamente para propósitos informacionales y no puede ser interpretado como asesoría legal. Si tienes preguntas, deberías consultar con un representante legal para ayudarte.
The attorneys of BPE Law Group, PC. have been advising our clients on real estate, business and estate planning issues for over 20 years and have assisted numerous clients in probate, business and real estate matters and have represented and advised brokers on their professional obligations as well as consumers on their rights. If you have questions concerning legal matters, give us a call at (916) 966-2260 or e-mail Keith at kbdunnagan@bpelaw.com. Our flat fee consult for new clients may get you the answers you need for the questions you have.
The information presented in this Article is not to be taken as legal advice. Every person’s situation is different. If you are facing a legal issue of any kind, get competent legal advice in your State immediately so that you can determine your best options.