What generally happens in consumer bankruptcy cases?
In a Chapter 7 bankruptcy filing, you file several forms with the bankruptcy court that list income, expenses, assets, debts and property transactions for the past two years. The cost to file is $200, which may be waived for people who receive public assistance or live below the poverty level. A court-appointed trustee is assigned to oversee the case. A month after filing, you must attend a meeting of creditors where the trustee reviews your forms and asks questions. If you have any nonexempt property, you must give it (or its value in cash) to the trustee. Three to six months later, you will receive a notice from the court that “all debts that qualified for discharge were discharged.” Chapter 13 differs slightly. You file the same forms along with a proposed repayment plan. Here you describe how you plan on repaying your debts over the next three to five years. The cost to file is $185 and a trustee is assigned to oversee the case. You attend the meeting of creditors. Often one or two
