Posts Tagged ‘bankruptcy relief’

Bankruptcy Fears

Friday, February 18th, 2011

Fears based upon misconception can keep debtors from pursuing bankruptcy relief.  This is does not have to be the case.  A person interested in pursuing debt relief should gather and carefully study accurate information related to debt resolution.  It is dangerous to base a decision on rumor or misconception.  For example, people who are considering bankruptcy sometimes express great fear that if they file bankruptcy it will require them to attend a meeting of creditors.  The assumption is that this meeting is something to be greatly feared.  The reality is that a 341 hearing in bankruptcy otherwise known as a meeting of creditors is an important part of the bankruptcy process.  This bankruptcy hearing can be dealt with in a straightforward manner by a debtor who makes sure to file full and accurate information on his or her bankruptcy.  So what is this meeting of creditors?  After a bankruptcy has been filed a notice of the commencement of the debtor’s bankruptcy will go out.  The notice sets forth information to the creditors that a bankruptcy has been filed by the debtor with appropriate warnings related to continued collection efforts.  A meeting of creditors will be scheduled. The trustee, debtor and his or her lawyer should attend that meeting. It is not mandatory that creditors show up for the meeting and many times they do not attend it. At the meeting the debtor should expect to answer questions for the trustee. Some of the relevant questions that may be asked are related to proof of identification, employment status, inquiries about handling of financial matters, property ownership, and any pre-bankruptcy petition transfers by the debtor of money or other property interests and verification that the debtor has read the U.S. Trustee’s statement of information that was made available to the debtor.   Similarly many other fears when carefully examined in light of reality fade.   Debtor’s should not be dissuaded from pursuing debt relief based upon rumor or misconception.   A person interested in gathering accurate basic bankruptcy information can consult with a bankruptcy attorney who can go over avenues for debt relief and provide legal advice.  Each debtor’s situation should be individually reviewed and evaluated to determine qualification for relief in bankruptcy.

This article does not intend to give legal advice or does it do so.  The reading of this article does not establish an attorney-client relationship or substitute for consulting with a licensed lawyer.

We are a debt relief agency.  We help people file for relief under the bankruptcy code.