If you are plagued by medical expenses, bills, credit card debt, mortgages and other expenses, you may feel overwhelmed by the monthly payments required just to stay afloat. It may get to the point where you are unable to keep your head above water, and the chances of paying off your expenses may seem impossible. Chapter 7 bankruptcy allows people in this situation to wipe away much of their debt and start again with a clean financial slate.
Once you have filed your Chapter 7 bankruptcy paperwork,you must attend a meeting of creditors before the trustee who is assigned to the case. This meeting will take place anywhere between 21 and 40 days after you have filed your paperwork. Creditors are given the date of the meeting and are invited to attend. During the meeting, the trustee and creditors in attendance may ask questions regarding your case. The trustee will ensure you understand the following:
- How the bankruptcy will affect your credit history
- All the chapters of bankruptcy that are available to you
- How to reaffirm a debt
- The effect a discharge will have on your finances
It is important to be fully informed of the bankruptcy, and you should ask any questions you may have regarding Chapter 7. After the meeting of creditors has taken place, the trustee will report their decision to the court as to whether your case is valid. Going through the meeting of creditors is a part of the bankruptcy process.
This information is intended to educate and should not be taken as legal advice.