A Creditors Meeting can go by many other names. It is also commonly referred to as a §341(a) Meeting, the First Meeting or a meeting of the creditors. The name is derived from the section of Title 11 in the United States Code. In this passage, requirements are set forth for the first meeting that needs to take place between creditors and equity security holders.

Debtors are required to attend these meetings and their case may be dismissed if they fail to show for all or part of the meeting. This means that if you are declaring bankruptcy, you need to attend this meeting. You will be required to submit to questioning and an examination under oath. This means that you will be sworn to tell the truth in response to the questions that you are asked during this meeting. Despite the fact that you are under oath, these meetings do not take place within the presence of a judge. Questions asked will span a variety of subjects including the acts, conduct, properties, financial situations, debts, liabilities and any other subject related to the administration of your estate and possessions. This will help to explain your situation to the Trustee in order to make the best decision with how to proceed with your filing.

The meeting will be conducted either by a United States Trustee (for bankruptcies under Chapters 7, 12 and 13) or by a representative of the Office of the United States Trustees (for bankruptcies filed under Chapter 11 where the debtor remains in possession of their property and there has been no United States Trustee immediately assigned to the case). Despite the fact that this meeting is intended to involve the creditors to which you owe money, they are not required to attend and they seldom do. In most instances, these meetings only take a few minutes and they are only longer when the individual overseeing the meeting is dissatisfied with the answers provided by the individual being investigated. By being honest and straightforward, you can more easily explain the situation to the Trustee who will be able to help you with your filing.

Bankruptcy can be a complicated process. Complications are often further exacerbated if you have a spouse. Here is a look at your options when it comes to bankruptcy and being married.

In marriage situations, when a person or couple needs to declare bankruptcy they have two main options. They can either both declare bankruptcy in a joint procedure or one person can declare bankruptcy without the other. It is also important that you research your individual state property laws in order to determine how a couple can handle this process with specific regard to their state, since these laws vary from state to state.

Community property states are very clear about their specifications for debt and spouses. If individuals are not filing jointly and only one person is filing, both halves of the property/debt become property of the estate. As such, the debt of both individuals is resolved even when only one person files for bankruptcy. In these states, there is no real need for both individuals to file for bankruptcy since they are considered to share the property and the accompanying debt. The majority of states do not qualify as community property states.

Other states have different laws. In these alternate states, it is important to note that if only one person files bankruptcy, the debt of their spouse is not resolved. In order for debt to be resolved in these states, both individuals need to be filing jointly. It is important to note that the debt in both individuals’ names will be resolved when only one declares bankruptcy. However, the spouse may not piggyback their exclusive debt on their partner’s bankruptcy case.

In order to determine the best bankruptcy option for you and your spouse, consider the type of state you are living in at the time of filing. You will also need to consider whether you have individual debt or joint debt. This reflection will often make the advantages and drawbacks very clear, allowing you to make the most educated decision in the matter.

For those not in the business of personal finances, all the different chapters of bankruptcy can seem confusing! To help, here are the various different chapters of bankruptcy within the United States and a helpful description in order to allow you to see the subtle nuances and differences between the chapters. These six chapters of bankruptcy are found at Title 11 of the United States Code, named as the Bankruptcy Code.

Chapter Seven: Chapter 7 Bankruptcy is available to individuals and businesses. This form of bankruptcy is a general liquidation of your assets. All of your non-exempt items are turned over to a bankruptcy trustee. The trustee liquidates all of your property and items, with the subsequent money being divided amongst your lenders. It does not include a plan for repayment. This is one of the most popular bankruptcy options for individuals and businesses.

Chapter Nine: Chapter 9 is a municipal bankruptcy. This bankruptcy is granted to municipalities to give them time to develop a plan and negotiate the pay back of their overdue debt.

Chapter Eleven: Chapter 11 bankruptcy is a reassessment and reorganization of debt. This is a very popular option for businesses. However, some individuals have been known to take advantage of this bankruptcy option. This is also known as a ‘reorganization’ bankruptcy.

Chapter Twelve: Chapter 12 bankruptcy is specific for certain professionals. This chapter is for the rehabilitation of debt exclusive to fishermen and farmers that need to declare bankruptcy. These individuals need to have a ‘regular’ annual income in order to qualify.

Chapter Thirteen: Chapter 13 bankruptcy is an available option for individuals that are fortunate enough to enjoy a regular income. These individuals are able to utilize the repayment plan set forth for them in this chapter. This is one of the most popular chapters of bankruptcy for individuals. This type of bankruptcy is also referred to as a wage earner’s plan.

Chapter Fifteen: Chapter 15 bankruptcy is available to international businesses as a form of debt elimination. It is also a viable option for ancillary cases. This newly created chapter is designed to deal with insolvency taking place in more than one country.

Bankruptcy is likely more common than it ought to be, but there are a number of top reasons as to why individuals are often forced to file for Bankruptcy. The top 5 reasons many people file for bankruptcy are loss of employment, high medical debts, the desire to prevent property from being repossessed, the desire to prevent foreclosure and in order to end wage garnishments. In these situations, filing for Bankruptcy can help you to keep some financial control over your life.

Loss of Employment

Loss of employment is one of the most common reasons that you can file for bankruptcy. Having employment will often allow you to live comfortably and take on a particular amount of debt, such as that which would be incurred through vehicle or home loans. Losing the income that allows for these debts can be devastating for families. In addition to debt, a loss of employment can also lead to a loss of insurance which often prompts a downward spiral for families that can be stopped and potentially controlled when you file for bankruptcy.

High Medical Debts

In many cases, families will need to make decisions on how to allocate the payment of medical bills when there is an unplanned major accident or serious illness discovery. Chapter 7 Bankruptcy filing can help you to reduce the amount that you will need to pay when it comes to high medical bills.

Prevent Property From Being Repossessed

Even in the event that your car has been repossessed, if you file for bankruptcy this motion can very often force the creditor to return your vehicle to you. Past payments that you may have missed will be consolidated in a Chapter 13 Bankruptcy repayment plan and you will no longer be required to make payments to the finance company, but rather to your Bankruptcy Trustee, who will then pass the money on to the finance company.

Prevent Foreclosure

If your home is in the process of being foreclosed upon, filing for Chapter 13 Bankruptcy will be able to stop the foreclosure any time prior to the sale of the residency. This form of Bankruptcy will structure a repayment plan in order to help you catch up on their mortgage payment and the amount of money that you are behind in your mortgage.

End Wage Garnishments

Filing for Chapter 7 Bankruptcy will end wage garnishments. Wage garnishments can often take away from your weekly necessities that you would have otherwise used that money to fund. Chapter 13 Bankruptcy can also help you to purchase necessities for you and your family rather than having that money taken away through wage garnishment.

Also referred to as a Wage Earner’s Plan, Chapter 13 Bankruptcy allows individuals with a regular income to create a repayment plan. This plan is designed in order have you pay back some or all of the money that you owe. Unlike other types of bankruptcy, with this Chapter you can often save your homes from foreclosure. The repayment plan with Chapter 13 Bankruptcy takes place over three to five years, but you do need to be eligible to file for this particular chapter of bankruptcy.

First, if you are applying for Chapter 13 Bankruptcy, you need to have a regular source of income as a result of regular wage work, self-employment, social security, disability, child support, alimony, royalties, the renting out of possessed property/properties and/or the selling of a property. You are also required to have disposable income in order to pay a portion of your income to your creditors.

Next, you need to have debt that falls within a certain set of limitations. When it comes to unsecured debt, people who want to file for Chapter 13 Bankruptcy need to have debt that is less than $307,675.00. Secured debt may not exceed $922,975.00 if you are trying to maintain eligibility for Chapter 13 Bankruptcy. It is important to note that periodically these amounts are changed. They are adjusted in order to reflect the changes that take place when it comes to the economy and the consumer price index of the United States of America.

In order to be eligible for Chapter 13 Bankruptcy, successful candidates cannot have been involved in a bankruptcy petition that was dismissed over the last 180 days due to your willful failure to make an appearance before the court and the judge or your inability to comply with the terms and conditions that were presented to you as a part of the bankruptcy plan. Those who apply for Chapter 13 Bankruptcy must have, within the last 180 days prior to filing for bankruptcy, undergone Credit Counseling with an approved and recognized credit counseling service provider. Some exceptions to these terms exist for those who experience emergency situations.