 |
 |
 |
 |
 |
 |
 |
 |
 |
Chapter 7 Trustee and Estate Administration
In chapter 7 cases, a trustee, who is a private individual appointed by the United States Trustee, has the responsibility to administer the bankruptcy estate, which consists of virtually all of the debtor's property as of the date of filing. However, some assets are exempt from bankruptcy under state law, and may be so designated by the debtor in the petition.
It is the duty of the trustee to identify, collect and "liquidate" (i.e., sell) the debtor's nonexempt assets. Debtors are required to fully cooperate with the trustee in that effort.
341 (a) Meeting of Creditors
At the 341 (a) meeting of creditors, the trustee will examine the debtor under oath regarding assets and liabilities. Any creditors who appear will also be given an opportunity to ask general questions of the debtor.
801 Pacific Avenue
Long Beach, CA 90813 USA
phone: (562) 436-9292
fax: (562) 436-3131
voice: (800) 801-7221
email:info@gabriellaw.com
The filing of a chapter 7 petition is designed to result in a discharge of most of the debts listed on the bankruptcy schedules. A discharge is an order issued by the court that says debts do not have to be repaid, but there are a number of exceptions. Debts that cannot be discharged in a chapter 7 case include, for example, most taxes; child support or alimony; student loans; court-ordered fines and restitution; debts that were incurred through fraud or deception; and personal injury debts caused by driving while intoxicated or taking drugs. A discharge may be denied entirely if, for example, the debtor destroys or conceals property, destroys, conceals or falsifies records, or makes a false oath. Creditors cannot collect on discharged debts. A debtor can obtain a chapter 7 discharge once every six years.
Potential Effects of a Discharge
The fact that a bankruptcy has been filed can appear on an individual's credit report for as long as 10 years. Thus, filing a bankruptcy petition may impair the ability to obtain credit in the future. Also, a debtor will not be excused from paying any debts that are not listed on the bankruptcy schedules or any debts that are incurred after the bankruptcy is filed.
Effects of Reaffirming a Debt
After filing the petition, a debtor may seek to reaffirm a particular debt or a creditor may ask the debtor to reaffirm a debt. Reaffirming a debt means that the debtor signs and files with the court, a legally enforceable document, promising to pay all or a portion of the debt that may otherwise have been discharged in the bankruptcy case. Reaffirmation agreements are strictly voluntary - they are not required by the Bankruptcy Code or other state or federal law. The debtor can voluntarily repay any debt instead of signing a reaffirmation agreement, but there may be valid reasons for wanting to reaffirm a particular debt.
