Frequently Asked Questions

What is bankruptcy?

"Bankruptcy" refers to a federal code of laws and set of rules which are designed to help a debtor, whether an individual or a business, who is facing more debt than he, she, or it can afford to pay, achieve a fresh start. Bankruptcy permits the debtor to work out a plan to repay some or all of the debt, or to have some of the debt forgiven. The bankruptcy laws give the debtor protections and benefits that are not available outside of bankruptcy. Most notably, bankruptcy laws may provide for some debt forgiveness and typically require that creditors stop all collection efforts against the debtor while the debtor is working out a plan and/or awaiting a discharge of debts. The bankruptcy laws require that the debtor make full disclosure of all assets, liabilities and other financial information, and that the debtor either (1) surrender non-exempt assets for liquidation and distribution to creditors or (2) formulate and follow through on a plan of reorganization and debt repayment that provides creditors with at least as much as they would receive if the debtor's assets were liquidated and distributed to creditors. Bankruptcy cases are adjudicated by the bankruptcy court, a federal court which is a unit of the U.S. District Court in each jurisdiction.

Who can file a bankruptcy petition?

A bankruptcy case is commenced by the filing of a "bankruptcy petition," a formal request for relief under the bankruptcy laws. An individual, a partnership or a corporation (defined as including a qualifying business trust) may file a bankruptcy petition.

What is a joint petition?

A joint petition is the filing of a single bankruptcy petition by an individual and the individual's spouse. Only people who are married on the date they file the bankruptcy case may file a joint petition. Unmarried persons, corporations and partnerships do not qualify to file joint petitions. And, although married debtors may file a joint petition, they are not required to do so.

What are the different chapters in bankruptcy?

Chapter 7 is the liquidation chapter of the Bankruptcy Code. Chapter 7 cases may be filed by an individual, a corporation (defined as including a qualifying business trust) or a partnership. Under chapter 7, a trustee is appointed to collect and sell all property that is not fully encumbered by a lien and is not exempt and to use any proceeds to pay creditors. When the debtor is an individual, the debtor is allowed to claim certain property as exempt. The individual debtor usually receives a discharge, which means that he or she is relieved of the obligation to pay certain types of debts. Corporations and partnerships are not eligible to receive discharges. For more detailed information on chapter 7, click here: Chapter 7 Liquidation Under the Bankruptcy Code

Chapter 11 is the reorganization chapter available to businesses and individuals who have assets and/or income for use in restructuring and repaying their debts. Creditors vote on whether to accept or reject a plan of reorganization, which must be approved by the Bankruptcy Court. While the debtor typically remains in control of the assets, the Court, in some circumstances, can order the appointment of a trustee to run the business. In addition to the filing fee paid to the Clerk, the debtor must pay a quarterly fee to the U.S. Trustee based on the debtor's revenues. For more information on chapter 11, click here: Chapter 11 Reorganization Under the Bankruptcy Code

Chapter 12 offers bankruptcy relief to those who qualify as a family farmer or fisherman. There are debt limitations for chapter 12, and a certain portion of the debtor's income must come from the operation of a farming or fishing business. Family farmers or fishermen must propose a plan to repay their creditors over a period of time from future income, and the plan must be approved by the Bankruptcy Court. Plan payments are made through a chapter 12 trustee, who also monitors the debtor's business operations while the case is pending. For more information on chapter 12, click here: Chapter 12 Family Farmer or Family Fisherman Bankruptcy

Chapter 13 is the debt repayment chapter for individuals (including those who operate businesses as sole proprietorships) who have regular income, whose secured debts do not exceed $871,550 and whose unsecured debts do not exceed $290,525. (Note that these debt limitations change from time to time.) Chapter 13 is not available to corporations or partnerships. Chapter 13 generally permits individuals to keep their property by repaying creditors out of their future disposable income. The chapter 13 debtor proposes a repayment plan which must be approved by the Bankruptcy Court. The debtor pays the amounts set forth in the plan to the chapter 13 trustee, who distributes the funds to creditors in return for a small fee. The chapter 13 debtor receives a discharge of most debts after the debtor completes the payments required under the plan. For more information on chapter 13, click here: Chapter 13 Individual Debt Adjustment

INFORMATION ABOUT BANKRUPTCY LAWS AND RULES

What is the Bankruptcy Code (or ACT)?

The Bankruptcy Code is Title 11 of the United States Code. It is a federal law that provides help for persons or businesses in financial difficulty. The Bankruptcy Code is divided into several chapters. Chapters 1, 3 and 5 apply to all Bankruptcy cases and contain very important provisions regarding general rights and responsibilities of debtors, creditors and trustees in every bankruptcy case. Chapters 7, 11, 12 and 13 each offer debtors a different set of options for dealing with their creditors.

Who is a bankruptcy trustee? Who is the United States Trustee? What is the difference?

A bankruptcy trustee is appointed in all chapter 7, 12, and 13 cases and in some chapter 11 cases. The trustee administers the bankruptcy estate and ensures that creditors get as much money as possible. The trustee also presides at the first meeting of creditors (also called the "section 341 meeting" because 11 U.S.C. ' 341 of the Bankruptcy Code requires that the meeting be held). In a chapter 7 case, the trustee liquidates the debtor's assets by collecting and selling non-exempt estate property. In a chapter 13 case, the trustee collects money from the debtor and distributes it to creditors according to the debtor's repayment plan. The trustee can require the debtor to provide information and documents either before, after, or at the section 341 meeting. Debtors must cooperate with the trustee - failure to cooperate with the trustee is grounds for a denial of the debtor's discharge.

Trustees are not necessarily lawyers, and they are not paid by the Bankruptcy Court. They are appointed by the United States Trustee. The trustees report to the Bankruptcy Court, but their fees are paid from the bankruptcy filing fees or, if the estate has assets, from the assets of the estate.

The United States Trustee's Office is part of the United States Department of Justice. It is completely separate from the Bankruptcy Court. The United States Trustee's Office is a watchdog agency, charged with monitoring all bankruptcies, appointing and supervising all trustees, and identifying fraud in bankruptcy cases. The United States Trustee's Office cannot give legal advice, but it can give information about the status of a case. Debtors may also contact the United States Trustee's Office if they are having a problem with an individual trustee, or if there is evidence of any fraudulent activity. In monitoring cases, the United States Trustee reviews all bankruptcy petitions and pleadings filed in cases. He or she participates in many proceedings affecting the case, but the United States Trustee does not administer the case itself. The United States Trustee may file motions in a bankruptcy case, such as, for example, a motion to dismiss the case or to deny the debtor's discharge.

What is the difference between a denial of discharge and a determination that a debt is non-dischargeable?

A denial of a discharge affects the debtor's entire discharge - and therefore all dischargeable debts – while a determination of nondischargeability affects only a particular debt. When a discharge is denied, the debtor gets no discharge at all and remains liable for the full repayment of all of his or her debts. The Bankruptcy Court can deny a debtor's discharge for various reasons, the most common being that the debtor failed to take the required financial management course; concealed property within one year prior to the bankruptcy or after the case is filed; made a false statement under oath in the bankruptcy case; presented or used a false claim; or refused to obey a lawful order of the court.

On the other hand, a determination of nondischargeability excepts only a particular debt from the discharge. If the Bankruptcy Court determines a particular debt is not dischargeable, then the debtor is obligated to pay that particular debt, but the remaining dischargeable debts are discharged.

What is the automatic stay?

Filing a bankruptcy petition "automatically stays" (stops) most collection actions against the debtor or the debtor's property. See section 362(a) of the Bankruptcy Code. The stay arises by operation of law and requires no judicial action. But there are several exceptions to this general stay listed in section 362(b) of the Bankruptcy Code. The most common exceptions are criminal proceedings, collection of certain alimony and child support obligations and governmental actions to protect the public. In addition, the automatic stay is temporary and will end as to the debtor when discharge is granted (at which time the discharge protects the debtor) or denied, when the case is dismissed or closed, or if the Bankruptcy Court grants a creditor or other party relief from the automatic stay for the reasons set forth in section 362(d) of the Bankruptcy Code. See also other limitations on the automatic stay set forth below. As long as the stay is in effect, creditors generally may not initiate or continue lawsuits, wage garnishments, or even telephone calls demanding payments, without the approval of the bankruptcy court.

What is a discharge?

A bankruptcy discharge is a court order that relieves a debtor from personal liability for some specific types of debts. The discharge order permanently prohibits creditors from taking action to collect discharged debts from the debtor and, with very limited exceptions, against income and property that the debtor acquires after the bankruptcy filing. When a debt has been discharged, the creditor can no longer seek repayment. The discharge is the primary benefit most debtors obtain from bankruptcy. It is, however, important to understand that not all debts are dischargeable and creditors may still seek repayment for debts that are not discharged. Moreover, a debtor's discharge may be denied or revoked. For more information on discharge in bankruptcy, click here: The Discharge in Bankruptcy

Are all debts discharged in bankruptcy?

No. The following two categories of debts will generally not be discharged.

Secured Debts: The discharge does not affect a creditor's lien against collateral (e.g., a home mortgage or automobile loan), so it does not prevent a creditor who holds a lien from enforcing that lien after the automatic stay (discussed above) terminates or is lifted by the Court. Unless the debtor reaffirms the secured debt or redeems the collateral, the secured creditor can seize the collateral, sell it, and use the proceeds to satisfy its claim. But this is all the secured creditor can do. Unless the secured debt is also a nondischargeable debt (as discussed below), the discharge prohibits the secured creditor from collecting the balance (sometimes called a "deficiency claim") if the collateral is worth less than the claim.

Nondischargeable Debts: A discharge order does not apply to certain kinds of debts. These differ according to the chapter under which the bankruptcy petition is filed.

In a chapter 7, 11, or 12 case, nineteen categories of debts are excepted from the discharge. See section 523(a) of the Bankruptcy Code for the full list. Most of these debts are automatically excepted from discharge, without the creditor having to take any action. The most common of such nondischargeable debts are:

1. many tax debts
2. alimony and child support obligations, as well as debts to a spouse or former spouse that arose from a divorce or separation agreement, court order or determination by a governmental agency
3. student loans, unless repayment would impose an undue hardship on the debtor or his or her dependents

Some debts are excepted from discharge only if the creditor timely files a separate complaint, called an adversary proceeding, objecting to the discharge of the debt and the Bankruptcy Court issues an order to that effect. These include:

1. debts arising from fraud or false representations
2. debts for embezzlement, larceny, or the mishandling of funds that the debtor held as a trustee or fiduciary
3. debts for willful and malicious injury

In a chapter 13 case, the discharge available is slightly broader. Some of the debts not dischargeable in a chapter 7 case may be dischargeable in a chapter 13 case. See section 1328(a) of the Bankruptcy Code for comparison to section 523(a) of the Code.

Is a discharge guaranteed/automatic or may interested parties, including creditors, object to the discharge?

In chapter 7 cases, the debtor does not have an absolute right to a discharge. An objection to the debtor's discharge may be filed by a creditor, by the trustee in the case, or by the United States Trustee. Creditors receive a notice shortly after the case is filed that sets forth important information, including the deadline for objecting to the discharge. In order to object to a debtor's discharge, a creditor must file a complaint called an adversary proceeding before the deadline set out in the notice. Once the deadline to object to a debtor's discharge passes, and if no objections have been filed, the Bankruptcy Court will grant the chapter 7 debtor his or her discharge. This will typically occur approximately three months after the meeting of the creditors, which is approximately four months after the debtor files the bankruptcy petition.

The Bankruptcy Court may deny a chapter 7 discharge for any of the reasons described in section 727(a) of the Bankruptcy Code, including failure to complete a course on personal financial management; failure to cooperate with the Trustee's investigation of pre-petition financial affairs; concealment of property within one year prior to the bankruptcy or after the case is filed; making of a false statement under oath in the bankruptcy case; presentation or use of a false claim; or refusal to obey a lawful order of the court.

In chapter 12 and 13 cases, the debtor is usually entitled to a discharge upon completion of payments under the plan. Most plans take between three to five years to complete, so that is also about how long the chapter 12 or 13 debtor will wait for the discharge order. As in chapter 7, a discharge may not occur in a chapter 13 case if the debtor fails to complete a required course on personal financial management. A debtor is also ineligible for a discharge in chapters 7 and 13 if he or she received a prior discharge in another case commenced within the time frames discussed below.

BEFORE A BANKRUPTCY PETITION IS FILED

I.What should be considered BEFORE filing for bankruptcy

What are the consequences of filing a bankruptcy petition?

There are many consequences to filing a bankruptcy petition. Some are positive and some are negative. How a bankruptcy filing will affect a debtor depends on many factors, including the nature and extent of the debtor's assets and liabilities. Specific questions as to the effect of a bankruptcy filing on a debtor's assets should be addressed to an attorney with knowledge and experience in bankruptcy law whenever possible.

Generally, those considering bankruptcy should be aware of the following:

1. Filing for bankruptcy protection is not free, except for those debtors who can demonstrate very low income and accompanying hardship.
2. Not all debts can be discharged. Some examples of debts that are not discharged in a chapter 7 case include: child and spouse support obligations, most tax debts and most educational loans (i.e., “student loans”). Please refer to section 523 of the Bankruptcy Code for further information or see the above discussion on a bankruptcy discharge.
3. Secured creditors retain some rights which may permit them to seize the debtor's property, even after the debtor receives a discharge.
4. Failure to timely file the required documents, such as the matrix of creditors, a certificate of credit counseling (discussed below), the bankruptcy schedules or the bankruptcy statements, may result in dismissal of the bankruptcy case. Failure to file these documents may also result in the debtor being barred from filing another bankruptcy petition for 180 days.
5. It is extremely important that all information submitted to the Bankruptcy Court, the trustee appointed to the case, and the United States trustee is complete and accurate.
6. Fraudulent information from and acts of concealment by the debtor are grounds for denial of a discharge and may be punishable as a criminal offense.
7. Debtors who have been awarded a discharge in a previous bankruptcy case may not be eligible for a discharge in a later case, depending on the time that has elapsed between the filing of the two. See the above discussion on debtors who have received prior discharges.
8. Debtors who have had a previous bankruptcy case dismissed may have the automatic stay limited to only thirty days or have no stay at all, depending on the number of pending cases within the year prior to filing the newest case. See the discussion below on the impact of a prior dismissed case on the applicability of the automatic stay.

How will filing for bankruptcy affect my credit?

Filing for bankruptcy will show up on a debtor's credit report for 10 years and can make obtaining credit more difficult or expensive, but not impossible.

How many years will a bankruptcy show on my credit report? Will I be able to obtain credit after filing for bankruptcy?

The fact that a debtor filed a bankruptcy petition can remain on the debtor's credit report for ten years under provisions of the Fair Credit Reporting Act, 15 U.S.C. § 1681. If the debtor successfully completes a chapter 13 plan, many credit reporting agencies will report that information for only seven years.

The decision to grant or deny credit in the future is strictly up to each creditor and will vary, depending on the type of credit requested. There is no law to prevent anyone from extending credit to a debtor immediately after the filing of a bankruptcy; nor is there any law that requires a creditor or potential lender to extend credit to a debtor.

How do I get a bankruptcy removed from my credit report?

The law states that credit reporting agencies may not report a bankruptcy case on a person's credit report after ten years from the date the bankruptcy case is filed. The Bankruptcy Court has no jurisdiction over credit reporting agencies. The Fair Credit Reporting Act, 15 U.S.C. Section 1681, is the law that controls credit reporting agencies. If you believe that there is an error in your credit report and want to correct it, you should contact the credit reporting agencies.

How will filing a bankruptcy petition affect my landlord's judgment for possession?

The filing of a bankruptcy petition operates as an immediate and automatic stay (further discussed above) of the commencement or continuation of any judicial proceedings against the debtor. This usually includes any efforts by the landlord to evict or otherwise recover real property leased by the debtor. However, the automatic stay does not apply to the continuation of an eviction action by a landlord of residential property in which the debtor resides under a lease and where the landlord has obtained, before the debtor filed a bankruptcy petition, a judgment for possession of the property. Accordingly, if the landlord obtains a judgment for possession of the property before the debtor files bankruptcy, the automatic stay will not apply. In these cases, the landlord does not need to file a motion to obtain a relief from the automatic stay. Instead, the automatic stay does not apply to the landlord, and the landlord is free to continue pursuing its eviction rights under state law. However, there is a significant limitation to landlords’ rights under this new provision:

The automatic stay will apply for the first 30 days of the bankruptcy case if: (1) the debtor includes with the bankruptcy petition a certificate stating that the debtor would be allowed to cure the default under the state law; (2) the debtor deposits with the Bankruptcy Court at the time the case is filed any rent that would become due during the first 30 days of the case; and (3) within 30 days after the case is filed, the debtor cures all monetary defaults giving rise to the eviction action.

The landlord, however, still has the option to object to the debtor's certificate. In that case, the Bankruptcy Court will hear the matter within 10 days after the landlord files the objection. If the Court upholds the landlord's objection, the automatic stay will immediately terminate, and the landlord will be allowed to continue the eviction process.

Additionally, if the landlord's eviction action is based on endangerment of the property or the illegal use of controlled substances on the property and the landlord files a certificate stating that the landlord has filed an eviction action or that the debtor, during the 30-day period preceding the filing of the certification, has endangered the property or illegally used a controlled substance on the property, then the automatic stay will terminate 15 days after the landlord files its certificate unless the debtor objects. The debtor may file an objection to the landlord's certificate within 15 days after the certificate is filed and the Bankruptcy Court will hold a hearing within 10 days after the debtor files the objection. If the debtor demonstrates to the Bankruptcy Court that the events alleged by the landlord did not exist or have been remedied, then the stay will remain in effect. Otherwise, the stay will automatically terminate, and the landlord will be free to continue or begin the eviction action.

Which chapter is right for me?

Debtors may choose the chapter of the Bankruptcy Code which they believe suits their needs. Whether to file a bankruptcy case, and under which chapter to file, are extremely important matters that must be evaluated according to the particular circumstances of each debtor. No simple statement can spell out all the different issues to consider. It is highly recommended that these decisions be made only with competent legal advice from an attorney experienced in bankruptcy law. The Clerk's Office staff and "bankruptcy petition preparers" (discussed below) (including typing services and paralegals who can assist in filling out bankruptcy forms, but who are not attorneys) are prohibited from giving legal advice. Only a lawyer can give legal advice.

Do I need an attorney to file for bankruptcy?

A debtor may file a bankruptcy petition without hiring an attorney. However, filing the petition itself merely starts the bankruptcy process. The relief available to a debtor and the obligations imposed upon a debtor in bankruptcy can be complex and burdensome to many debtors. Hiring a competent attorney is highly recommended and is truly in a debtor's best interest.

What if I cannot afford to hire an attorney?

While paying for legal services may appear unaffordable for some, the benefits of having legal representation often more than justifies the cost. In a chapter 7 case, attorney fees are usually paid by the debtor before the case is filed. Under a chapter 13 case, these fees are sometimes paid through the debtor's repayment plan. There are also legal service organizations that may be able to help with navigating a bankruptcy case and state and local bar associations often provide lawyer referral services. Most of these legal services can be found through any of the search engines available on the internet.

What must I do BEFORE I file for bankruptcy?

The most effective way to sufficiently prepare for a bankruptcy is to meet with a competent attorney experienced in bankruptcy law. An attorney will counsel the debtor on whether and when to file a petition, the appropriate chapter, organize the debtor's assets and liabilities so that the bankruptcy forms and schedules can be properly completed; counsel the debtor on the appropriate exemptions available; and be the debtor's guide as he or she proceeds through the bankruptcy process.

What are exemptions?

Exempt assets are protected by law from liquidation and distribution to a debtor's unsecured creditors.

Section 522(b) of the Bankruptcy Code allows an individual debtor to exempt real, personal, or intangible property from the property of the estate. Typically, exempt assets include (among other things) the value of a vehicle up to a certain dollar amount, the equity in a home up to a certain amount, and tools of the trade. Exemptions are claimed in Schedule C. As with all schedules, it is important to be complete and accurate and to provide all of the information requested in Schedule C. If no one objects to the exemptions claimed by the debtor, those assets will not be a part of the bankruptcy estate and will not be liquidated and used to pay unsecured creditors.

In Massachusetts, each debtor must choose between Massachusetts state law exemptions and the federal exemptions provided under section 522(d) of the Bankruptcy Code. This choice is extremely important. Deciding which assets are exempt and how to protect certain assets from creditors is one of the more important and difficult aspects of a bankruptcy case. It is extremely important to consult an attorney with any questions regarding the availability of exemptions.

What is a Massachusetts declaration of homestead?

The Massachusetts homestead law is Chapter 188 of the Massachusetts General Laws. It allows homeowners to protect some of the equity in their home from creditors. In Massachusetts, the homestead protection is not automatic. To obtain the benefit of the homestead protection in a bankruptcy case, a homeowner MUST execute a declaration of homestead and record it with the appropriate registry of deeds PRIOR to filing a bankruptcy petition. It is extremely important to consult an attorney before filing a bankruptcy petition with any questions regarding the homestead exemption. A declaration of homestead will not be valid unless it is completed and filed properly. Furthermore, a debtor who used the Massachusetts homestead exemption may not use the exemptions set forth in section 522(d) of the Bankruptcy Code.

What are the minimum required documents that can be submitted to the Bankruptcy Court when filing a petition? When must the remainder of the documents be filed?

If a debtor needs to start a bankruptcy case quickly, he or she may file only the Voluntary Petition (Form 1), the Creditor Matrix with the accompanying Verification and the filing fee. This is called a "skeleton filing." If the matrix is not filed with the petition, the Bankruptcy Court will issue an order requiring that it be filed within three days to avoid dismissal of the bankruptcy case. The remaining required documents (the Schedules and Statements) must be filed within fifteen days after filing the petition or the Court may dismiss the bankruptcy case. Short extensions can be granted by the Bankruptcy Court for good cause shown and upon timely request by the debtor.

What is a fraudulent transaction, and how will it affect my bankruptcy?

There are numerous potential adverse consequences of a finding that a debtor has committed fraud prior to or in connection with a bankruptcy case.

A fraudulent transfer occurs when the debtor conveys property with intent to hinder, delay or defraud his or her creditors, or when property is transferred for less than reasonably equivalent value without regard to the debtor's actual intent. In general, the bankruptcy trustee may avoid transfers made by the debtor within two years before the bankruptcy filing, and state law allows the trustee to avoid fraudulent transfers made within four years prior to bankruptcy. The recipient of the fraudulent transfer may be required to either return the fraudulently transferred property or pay damages to the bankruptcy estate. The trustee may also seek to avoid any transfer of an interest of the debtor in property that was made on or within 10 years before the date of the filing of the bankruptcy petition if the transfer was made to a self-settled trust (a trust that is funded with money that comes directly from the beneficiary of the trust), if the transfer was made by the debtor, the debtor is the beneficiary of the trust, and the debtor made the transfer with the actual intent to hinder, delay or defraud his creditors.

If the court finds that a debtor has committed certain fraudulent acts, such as an intentional fraudulent transfer, has made a false oath in connection with the case, has failed to explain satisfactorily any loss of assets, has refused to obey an order of the court, the debtor's discharge will be denied.

Certain fraudulent acts by the debtor, such as a false oath in connection with the bankruptcy case, attempted bribery, or concealment of assets, may also lead to criminal penalties, including fines and imprisonment as provided in Title 18 of the United States.

What is the creditors' meeting? What can I expect to happen there?

Section 341 of the Bankruptcy Code requires that the United States Trustee convene and preside over a meeting of a debtor's creditors. This "meeting of creditors," which is also referred to as a section 341 meeting, is held in every bankruptcy case. The debtor must attend the meeting; in many cases it is the only meeting or hearing that the debtor must attend. The first meeting of creditors usually occurs between twenty and forty days after the date that the bankruptcy petition is filed with the Bankruptcy Court. When the bankruptcy petition is filed, the Clerk’s Office sends out a notice that sets the date for the meeting. In chapter 7, chapter 12, and chapter 13 cases, the meeting is conducted by the trustee who the United States Trustee has assigned to the case. No bankruptcy judge is present at the meeting. In chapter 11 cases, where (usually) the debtor is in possession of the business assets and no trustee is assigned, a representative of the United States Trustee's office conducts the meeting. Creditors are not required to attend these meetings and, in general, do not waive their rights by failing to appear.

The meeting of creditors permits the trustee or representative of the United States Trustee's Office to review the debtor's petition and schedules with the debtor face-to-face. The debtor is required to answer questions under penalty of perjury concerning the debtor's conduct, assets, liabilities, financial condition, and any matter that may affect administration of the bankruptcy estate or the debtor's right to a discharge. This information enables the trustee or representative of the United States Trustee's Office to understand the debtor's circumstances and facilitates the efficient administration of the case.

Section 341 meetings are typically short in duration. The trustee or representative of the United States Trustee's Office may continue the meeting if he or she is not satisfied with the information that the debtor provides. It is imperative that the debtor attends the meeting of creditors. If the debtor fails to appear, the trustee or representative of the United States Trustee's Office may request that the Bankruptcy Court dismiss the bankruptcy case or that the Court order the debtor to cooperate or be held in contempt of court for willful failure to cooperate.

In addition, debtors are required to file with the trustee at least seven (7) days prior to the Section 341 meeting (i) all payment advices or other evidence of payments received by the debtor within 60 days before filing, made to the debtor from any and all employers; and (ii) their most recent tax returns.

What can I do if a creditor continues to try to collect on a debt that I owe after I have filed my bankruptcy petition and where the automatic stay applies?

If the automatic stay applies to a debtor's case and a creditor continues collection actions against the debtor, that creditor is violating the automatic stay. A debtor may request an injunction or monetary sanctions against the creditor and should also inform the United States Trustee and/or the trustee appointed to the case.

What are claims? What are proofs of claims?

Claims: In the broadest sense, a claim is any right to payment held by a person or company against the debtor and/or the bankruptcy estate. A claim does not have to be past due and can include sums which will come due in the future. Claims also include rights to payment which are not yet determined, such as an unresolved lawsuit against the debtor or even the right to be paid by the debtor in the future, so long as that right arose before the bankruptcy case was filed. In filling out the bankruptcy schedules, debtors should include any debts owed, past, present, or future, as well as those that are contingent (e.g., some guarantees) or even disputed by the debtor, so long as the creditor claims that the monies are owed by the debtor. Note: Claims which are not listed are, in some cases, not dischargeable.

Proofs of Claims: The written statement filed in a bankruptcy case setting forth a creditor's claim is called a proof of claim. Claims should be submitted on a proof of claim form and should include a copy of the documents on which the claim is based. If the claim is secured, the proof of claim should also include evidence of the secured status of the debt. With limited exceptions, a creditor (other than a governmental unit) in chapter 7, 12, or 13 case must file a proof of claim within ninety (90) days after the first date set for the meeting of creditors. If a creditor files a claim after the deadline for doing so set by the Clerk’s Office, the debtor may object to the claim as being untimely filed.

Can creditors be added after the discharge order is entered?

In general the schedules may be amended to add creditors which existed as of the date of the filing of the bankruptcy petition. This requires a motion to amend the appropriate schedules and the creditor matrix. A filing fee must be paid when the motion to amend is filed. In addition, a chapter 13 debtor may amend the schedules to include certain post-bankruptcy consumer debt.

Is it possible to convert my case from one chapter under the Bankruptcy Code to another?

Yes. A debtor, or any other party in interest, may file a motion to convert the case to any other chapter under which the debtor is eligible to be a debtor. While conversion from one chapter to another is usually automatic, the Bankruptcy Court may deny conversion depending on the circumstances of the case.

What does it mean if a case is dismissed?

A dismissal order ends the bankruptcy case before a discharge order enters. When the Court dismisses the case, the automatic stay ends and creditors may start to collect debts again. An order of dismissal does not free the debtor from any debt. The most common reason for dismissing a case is because the debtor has failed to do something that he or she is required to do (such as appear for the meeting of creditors or timely file all required documents). Unless the debtor appeals the order or seeks reconsideration of the order of dismissal within 10 days, the Clerk will automatically close the case.