The rules affecting what happens to Chapter 13 debtor’s tax refunds while they are in bankruptcy differ depending on where the case is filed. These rules are generally set out in the local rules of the court or a general order. In the Eastern District of Texas, the Chapter 13 Trustee will allow a debtor […]
BANKRUPTCY: CREDIT COUNSELING AND DEBTOR EDUCATION
The Bankruptcy Code requires that all individuals filing bankruptcy receive credit counseling before their case is filed. Credit counseling must be provided by an agency approved by the Department of Justice’s U.S. Trustee Program. These agencies will charge a fee of around $50. Upon completion of the course, debtors receive a certificate of completion. This […]
BANKRUPTCY: JOINT DEBTOR VS. CO-DEBTOR
These two very similar sounding terms have very different meanings. The term joint debtor describes the second person listed on a bankruptcy petition when a married couple files bankruptcy. The first person listed on a bankruptcy petition is the debtor. There is no rule in the Bankruptcy Code that states either the husband or wife […]
BANKRUPTCY: WHAT IS A 341 MEETING?
A 341 meeting, also known as a creditor’s meeting, is presided over by the United States Trustee, and allows creditors and the trustee an opportunity to question debtors about the schedules and statements filed in their bankruptcy case. This meeting is required under 11 U.S.C. § 341 of the Bankruptcy Code, hence the name. Creditors […]
BANKRUPTCY: WHAT IS A TRUSTEE?
A trustee in bankruptcy is a person who is appointed by the United States Department of Justice to administer the bankruptcy estate. This means different things depending on whether the debtor files bankruptcy under Chapter 7 or Chapter 13. In Chapter 7 bankruptcy, the trustee presides over the 341 meeting of creditors, during which the schedules […]