Wiping Out Debt With Chapter 7 Bankruptcy
One of the purposes of bankruptcy is to discharge certain debts to give an honest individual debtor a “fresh start.” To qualify for relief under Chapter 7 of the Bankruptcy Code, the debtor may be an individual, a partnership, or a corporation or other business entity. A debtor under Chapter 7 must, within 180 days before filing, receive credit counseling from an approved credit counseling agency either in an individual or group briefing. After filing, a debtor must also complete an instructional course in personal financial management prior to being discharged.
After filing of the bankruptcy petition, an impartial Chapter 7 trustee will be appointed to your case. Also, as a result of your filing bankruptcy, your creditors are afforded an opportunity to question you so the bankruptcy court will schedule a 341 meeting of creditors at which you will have to appear with your attorney. The 341 meeting of creditors is typically held at the bankruptcy court or the Office of the U.S. Trustee. After the 341 meeting of creditors, the trustee will determine if you have any assets that are available for distribution to your creditors. If there are no available assets, you will be discharged of the debts listed in your bankruptcy petition.