Common Legal Questions
What Is a Bankruptcy Discharge?
A bankruptcy discharge releases the debtor from personal liability for certain specified types of debts. In other words, the debtor is no longer legally required to pay any debts that are discharged.
How Long Does the Bankruptcy Process Take?
Depending on which type of bankruptcy, a Chapter 7 individual matter can take up to three months. A chapter 13 can be between 3 or 5 years. A chapter 11 can also be approximately 1 to 2 years before confirming a chapter 11 plan of reorganization.
Do I have to go to Court for Bankruptcy?
Yes, a Debtor or Debtor in possession must appear for one hearing at the initial status conference and the 341(a) meeting of creditors.
What is Chapter 7 Trustee?
When a chapter 7 petition is filed, the U.S. trustee (or the bankruptcy court in Alabama and North Carolina) appoints an impartial case trustee to administer the case and liquidate the debtor's nonexempt assets. 11 U.S.C. §§ 701, 704. If all the debtor's assets are exempt or subject to valid liens, the trustee will normally file a "no asset" report with the court, and there will be no distribution to unsecured creditors. Most chapter 7 cases involving individual debtors are no asset cases. But if the case appears to be an "asset" case at the outset, unsecured creditors (7) must file their claims with the court within 90 days after the first date set for the meeting of creditors. Fed. R. Bankr. P. 3002(c).