Any body gone to BANKRUPTCY CHAPTER 7 with new laws?How to prepare for Trustees meeting?What questions are?

usually asked? What is meens test?

This entry was posted on Friday, June 19th, 2009 at 7:45 am and is filed under Bankruptcy Law. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.

2 Responses to “Any body gone to BANKRUPTCY CHAPTER 7 with new laws?How to prepare for Trustees meeting?What questions are?”

1. Pu7s3 Says:
   June 20th, 2009 at 10:24 pm

   TALK TO A LAWYER!

2. robert_dod Says:
   June 22nd, 2009 at 8:47 am

   The trustee is not as tough as you think. Here’s the important thing, regardless of the question, as you can get into real trouble by lying.

   Back in the good old days, the meeting was even easier. He would ask if you were telling the truth on your schedules (you say yes), and then it is over.

   Now, with the new laws, you have to establish that your creditors would not do better under Ch. 13. Ch. 13 is where you pay income after necessary expenses to your creditors, often for 5 years.

   Here’s the problem. In a Ch.7, with the various exemptions, there is usually no property worth selling. Your creditors get nothing.

   Even if your income is so low that you only have, say, $20 a week leftover, that’s $80/month; $960 a year; $4500 over five years. The trustee can ask the court to convert your case to a Ch 13 case.

   Now, you have a budget as part of your schedules. Make sure you understand how you got those numbers. Often, they concentrate on these.

   Frankly, the worry is usually worse than the actual meeting.

   Good luck. It will work out. FInally, if you do get converted to a CH 13, do not fall behind in payments, as this will result in a dismissal of the bankruptcy. Then you have to wait (usually a year) before restarting the entire thing.