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: CROSS-COLLATERALIZATION AND CREDIT UNIONS
In bankruptcy, debtors often wish to discharge their unsecured debt but keep their secured collateral. This is generally allowed in bankruptcy, but a practice commonly employed by credit unions makes this process more complicated and often more expensive. The reason is because credit unions often include cross-collateralization clauses in their loan documents. Cross-collateralization means that […]
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 […]
BEFORE GETTING MARRIED YOU MAY WANT TO CONSULT A BANKRUPTCY ATTORNEY
Marriage can offer many financial benefits, including tax advantages, two incomes, and someone to share expenses. Unfortunately, getting married can cost you a great deal if you need to file bankruptcy. Getting married can make a person ineligible for Chapter 7 bankruptcy and increase their payments in Chapter 13 bankruptcy. I’m going to use an […]