Bankruptcy 341 Meeting

What Is A 341 Meeting Of Creditors In A Bankruptcy

A 341 Meeting of Creditors occurs approximately a month after you file for bankruptcy. At the meeting the trustee will call a first meeting of creditors, which the debtor must attend. This meeting is also referred to as the § 341 meeting, named after the corresponding section of the bankruptcy code.

Creditors rarely attend a Chapter 7 bankruptcy meeting. However, for a Chapter 13 bankruptcy, one or two creditors may attend, especially if there is some question regarding the plan. If there are objections they are typically resolved by negotiation between the debtor or the debtor’s counsel and the creditor. If a compromise cannot be reached, a judge will intervene. Continue reading

Tax Debts In Bankruptcy

Filing Bankruptcy On Tax Debts

Income tax debts may be eligible for discharge under Chapter 7 or Chapter 13 of the Bankruptcy Code. Filing for bankruptcy is one of five ways to get out of tax debt, but you should consider bankruptcy only if you meet the requirements for discharging your taxes.

Chapter 7 v. Chapter 13 Bankruptcy Tax Debts

Chapter 7 provides for full discharge of allowable debts. Chapter 13 provides a payment plan to repay some debts, with the remainder of debts discharged. Under the current bankruptcy tax debts are treated identically in both Chapter 7 and Chapter 13 bankruptcies. Continue reading

“Chapters” Of Bankruptcy

What Are The Different “Chapters” Of Bankruptcy And What Do They Do?

Under Federal bankruptcy laws, there are a variety of different types of bankruptcy, or chapters.  Those different chapters are commonly used for different people or entities with different kinds of debt.

Chapters of Bankruptcy

There are four bankruptcy “chapters”:

  • Chapter 7 is the most common type of bankruptcy for individuals.  It is known as “straight” bankruptcy or “liquidation.” It involves the liquidation of non-exempted property to pay creditors.
  • Chapter 11, is commonly used by businesses and business entities, however individuals can use this form of bankruptcy as well.  It is known as “reorganization”, is generally used for entities and individuals whose debts are particularly large.
  • Chapter 12 is reserved for family farmers.
  • Chapter 13 is the other type of bankruptcy commonly used by individuals.  It is called “debt adjustment”. It requires a debtor to file a plan to pay debts (or parts of debts) from current income.

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