During your bankruptcy case, whether you file under Chapter 7 or Chapter 13, you will have to attend a meeting with your creditors and the bankruptcy trustee in charge of your case. Find out what questions the bankruptcy trustee must ask you, and the topics the trustee and creditors might ask about during the 341 meeting of creditors.
Common Questions About Negotiaiting With Creditors
If you file for Chapter 13 bankruptcy, you will repay creditors, in part or in full, through your Chapter 13 plan over three to five years. You cannot decide the order in which your creditors are paid. Instead, bankruptcy law sets forth the order that your bankruptcy trustee must pay your debts. Usually
In bankruptcy, a preference payment occurs when you repay a creditor within a certain period of time before you file for bankruptcy. If you make a preference payment (also called a preferential transfer), your bankruptcy trustee may be able to get the money back from the person or business you paid – called “avoiding” the transfer.
Most Chapter 7 filers receive a discharge about sixty days after the 341 meeting of creditors. Cases usually close a few days later, although some remain open longer. A Chapter 7 case might remain open for six months—even a year or more. The length will depend on the objection or litigation type. Learn more about how long you’ll wait after the 341 meeting before the court closes your Chapter 7 bankruptcy case.