Filing for bankruptcy may be just what you need to finally get out of debt. However, if you are filing for Chapter 7 bankruptcy, you may have to attend a hearing or a meeting of creditors. At this meeting, your creditors can attend to listen while you officially divulge your financial situation to the court. If you are nervous about your meeting of creditors, check out these three facts so you know what to expect.
You'll Be Asked Questions
The entire point of the meeting of creditors is to simply ensure you do want to file for bankruptcy and all your information is correct. You'll likely need to bring forms of ID to prove your identity. This is to prevent anyone else from stealing your identity and filing bankruptcy for you. The questions are mostly related to your finances, and they are designed to make sure you have included all your financial information accurately. Many of them seem redundant and confusing, but your attorney will go over which questions will most likely be asked. Your attorney will also be with you at the hearing to assist if you get confused. The questions are not asked by a judge, but you are sworn to oath. The questions are asked by a trustee, and the hearing is recorded.
You Won't Be Alone
You'll be given a scheduled time for your hearing, but your actual hearing may be a little later. For example, you may be told your hearing is at 9AM. Just before 9 a.m., you'll enter the courtroom and take a seat in the audience. The rest of the audience is comprised of others who have hearings scheduled for 9 a.m.. Therefore, even though your hearing is scheduled for 9 a.m., you may not get called by the trustee until 9:20 a.m. Once you've answered the questions, you can typically leave. The audience will be able to hear the trustee's questions and your answers.
Creditors May Speak
Besides other debtors seeking bankruptcy, the audience may include creditors. Creditors are allowed to attend the meeting and talk to you about your financial situation. If you are filing bankruptcy on a few medical bills or credit cards, the creditor likely won't attend because the debt will most likely be wiped away. In some cases, creditors may attend if you aren't filing for bankruptcy with them. If you are keeping your car, for example, the creditor may attend to ensure you are capable and willing to make the car payments after the bankruptcy.
Filing for bankruptcy can be the great start many people need to finally get their finances back under control. If you are nervous about the meeting of creditors, your attorney can help by ensuring you are fully prepared to answer any question. For more information about the bankruptcy hearing or if you would like to secure a bankruptcy attorney, contact someone like Charles J Schneider PC in your area today.