Why did my Chapter 7 trustee hire an attorney?

Why did my Chapter 7 trustee hire an attorney?

Oftentimes, a person who is contemplating filing a Chapter 7 bankruptcy will pay off all debts owed to family members, because the person does not want to erase the debt in the bankruptcy case. The trustee can hire an attorney to take depositions, issue subpoenas, and file lawsuits.

What happens if you forget to list a creditor?

Any debt you fail to list in an asset case won’t be discharged. If, however, yours is a no-asset Chapter 7 bankruptcy (there’s no money to repay creditors), the debt still might be discharged. whether you inadvertently or fraudulently omitted the debt, and. whether the omission harmed or prejudiced the creditor.

Do creditors show up at Chapter 7?

In most instances, creditors will not show up to the 341 hearing. The majority of Chapter 7 bankruptcy cases are “no-asset” cases—there’s no property or assets to distribute and, therefore, no issues to explore. Also, most cases don’t involve fraud or debts that a creditor can argue shouldn’t be discharged (wiped out).

What questions do they ask at meeting of creditors?

Common Bankruptcy Trustee Questions

• Did you review your bankruptcy petition and schedules before you filed them with the court?
• Is all of the information contained in your bankruptcy papers true and correct to the best of your knowledge?
• Did you disclose all of your assets?
• Did you list all of your creditors?
• Have you filed for bankruptcy before?

How are creditors paid in Chapter 7?

In Chapter 7, where non-exempt property is sold, the creditors are paid from the profits by priority. In Chapter 11 or 13, the creditors are repaid according to the repayment plan, which must conform to the priority rules.

Do you have to pay back if you file Chapter 7?

If you file for Chapter 7, these debts will remain when your case is over. In Chapter 13, you’ll pay these debts in full through your repayment plan. Debt related to fraud might get eliminated.