Posted on: 21 September 2017
For those who are experiencing financial difficulties, the prospect of declaring bankruptcy can be both frightening and tempting. You know your that your declaration can impact the way you get credit, qualify for jobs and be approved for home rentals for years to come, At the same time, you may also look forward to a time when you won't be hounded by bill collectors and you won't need to write those big checks to pay your credit card minimum balances each month. Eventually, you may opt for the fresh financial start that a chapter 7 bankruptcy filing could bring you. It can pay to be prepared for this experience, so read on to learn about some potential issues that could occur at your creditor's meeting.
The Creditor's Meeting
For chapter 7 filers, it probably won't be necessary for you to appear in a formal courtroom setting before a judge, Instead, you will likely be scheduled to appear with many other filers in a courtroom or other large room where you will answer a few questions. Although it is called a creditor's meeting, their appearance there is relatively rare. If one of your creditors should appear, you will know about it ahead of time so that you can be prepared. In most cases, creditors only appear for the following two reasons.
1. You are reaffirming a debt.
When you declare bankruptcy, you may be entitled to use your state's exemptions to keep some your property, such as your home or your car. In some cases, you may be given the option to reaffirm a debt and keep the property. For example, if you still owe money your car and want to keep it, you can pledge to do so. In most cases, this debt would be listed on your bankruptcy matrix, which is the list of everyone you owe money to. When you reaffirm, you are promising to make the payments as agreed regardless of your bankruptcy filing. The second reason a creditor might appear is less positive.
2. Your credit card use is being questioned
You are allowed to use your credit cards up to the date of your bankruptcy filing, but there are some limits that you need to abide by. If you go over the amount allowed to be charged in the period right before you file, your creditor may appear at your meeting for an explanation of the charges. If you have exceeded the allowed amount, you may need to show that your use was necessary and not for a luxury item. For example, you needed to repair your car so that you can get to work, or you needed to replace your washing machine.
Count on a bankruptcy attorney, such as from Barrett Twomey Broom Hughes & Hoke LLP, to prepare you for either of these two occurrences during your creditor's meeting.Share