The Bankruptcy Code sets forth the requirements for a person to file bankruptcy and establishes bankruptcy procedures all debtors must follow. Some of the bankruptcy procedures vary depending on whether a debtor is filing a Chapter 7 or a Chapter 13 case.
Pre-Bankruptcy Counseling
Chapter 7 and Chapter 13 debtors must complete pre-bankruptcy counseling during the 180 day period before they actually file bankruptcy. The counseling is provided by debt counseling entities which have been approved by the U.S. Trustee’s office. The cost for the counseling is $50.00 and upon completion of the counseling, a debtor will receive a certificate of completion which must be filed with the bankruptcy court.
Petition and Schedules
The Bankruptcy Code requires debtor to disclose their overall financial picture on the bankruptcy petition and schedules. Every debtor signs the bankruptcy petition under penalty of perjury. Therefore, it is important for a debtor to make an honest and accurate disclosure of his income, assets, and debts because he could be subject to both civil and criminal penalties if he is found to have perjured himself.
It is recommended that a debtor gather all the following information in anticipation of filing bankruptcy:
- Credit card statements;
- Collection letters;
- Monthly statements;
- Medical bills;
- Banks statement for the past six months;
- Paystubs for the past six months;
- Tax returns for the past three years;
- A list of all assets; and
- Any recent appraisals which establish the value of those assets.
When a debtor files bankruptcy, he must file paystubs for the past thirty days with the bankruptcy court. Additionally, at least seven days prior to the Meeting of Creditors, he must provide the bankruptcy trustee with a copy of his most recent tax return.
Hearings
Whether a debtor files a Chapter 7 or a Chapter 13 case, he must attend the Meeting of Creditors. At the Meeting of Creditors, the bankruptcy trustee will question the debtor about the information contained in the bankruptcy petition and schedules. Any creditors who choose to appear may also question the debtor.
A Chapter 13 debtor must also attend a Confirmation Hearing. At the Confirmation Hearing, the debtor, the bankruptcy trustee, and any creditors who choose to appear will argue why the debtor’s Chapter 13 plan should or should not be confirmed.
Pre-Discharge Counseling
Before a debtor will be granted a discharge, he must complete pre-discharge counseling with a counselor approved by the U.S. Trustee. The cost of the counseling session is $50.00. Upon completion of the counseling, the debtor will receive a certificate of completion which must be filed with the court.
Getting Legal Help
Because the bankruptcy rules and procedures are so complex, a debtor who chooses to represent himself may be putting his receipt of a discharge in jeopardy. The best way for a debtor to ensure his receives a discharge and gets the fresh start he deserves is to hire a qualified bankruptcy attorney.
