Blogs

Also known as the 341 hearing or 341 meeting, the meeting of creditors is an important stage of the California bankruptcy process in both Chapter 7 and Chapter 13 cases.  Our Roseville bankruptcy attorneys explain how the meeting of creditors fits into the bankruptcy timeline in both chapters, including how long into a bankruptcy case the meeting of creditors occurs, and how long it takes for a bankruptcy discharge after the 341 hearing has concluded.

How Long Into a Bankruptcy Case Does the 341 Hearing (Meeting of Creditors) Happen?

Regardless of whether you file for Chapter 7 or Chapter 13 in California, the meeting of creditors will occur between three weeks and two months of the date on which your petition is filed.  However, there are slight timing differences.
If you declare Chapter 7, the 341 hearing will be scheduled to take place on a date between 21 and 40 days of the date on which you filed for bankruptcy.  If you file for Chapter 13, the meeting of creditors will take place between 21 and 50 days of your filing date.
After the 341 Meeting, How Long Until Discharge?
Like many matters in bankruptcy, the answer to this question depends heavily on whether the debtor has filed for Chapter 7 or Chapter 13.
If a debtor files for Chapter 7 in Folsom, Sacramento, or other areas of California, the meeting of creditors will occur 21 to 40 days after the case is filed.  If the trustee determines that the debtor has supplied adequate and accurate information and has no follow-up questions to resolve, the meeting process ends, and the debtor will not be required to attend any further meetings with the trustee.  However, there is one more step to the process: the debtor’s creditors are granted a 60-day period in which to object to object to the case being discharged.  Therefore, a minimum of about two months must pass between the meeting of creditors and the Chapter 7 bankruptcy discharge.
If the debtor’s creditors do not wish to dispute the discharge, the case should come to a successful conclusion, provided the debtor has followed all of the rules set by the bankruptcy court.  Though the precise timeline of each case varies depending on its complexity, the overall Chapter 7 process typically takes anywhere from four to six months from start to finish.

The Chapter 13 timeline looks very different, because unlike Chapter 7 cases, which generally conclude within half a year or less, Chapter 13 cases last anywhere from three to five years.  This is due to the reorganization plan around which all Chapter 13 bankruptcies are built.  The reorganization plan spreads manageable payments over a period of 36 to 60 months, depending on the debtor’s debts and disposable income.
A Chapter 13 bankruptcy in Folsom or other parts of California will take at least three years to conclude, and the meeting of creditors will be scheduled to occur, at the latest, within 50 days of the date on which the bankruptcy petition is filed.  Therefore, about two years and 315 days, or roughly 10.5 months, will elapse at minimum between the meeting of creditors and the ultimate Chapter 13 discharge.  Keep in mind that, as is true of a Chapter 7 case, the trustee in a Chapter 13 case may continue the meeting of creditors if he or she determines that additional documentation is necessary.
Additionally, it is critical that debtors in both Chapter 7 and Chapter 13 cases remember to fulfill the pre-discharge debtor education requirement of bankruptcy.  Debtor education is a mandatory course all debtors must take through an agency which has been approved by the Department of Justice.  Numerous online debtor education options are available, typically for prices ranging between about $15 and $40.
California Bankruptcy Lawyers in Roseville and Sacramento
The Roseville Chapter 7 lawyers of The Bankruptcy Group can help determine whether bankruptcy is right for you, which chapter is appropriate to file under, which set of exemptions to use, how to time your bankruptcy filing advantageously, and provide answers to other important bankruptcy questions while protecting your rights, handling your legal documentation, and advising you of your options and responsibilities.  Our Chapter 13 attorneys in Roseville, Sacramento, and Folsom are highly experienced, and, regardless of whether you wish to file individually or jointly with your spouse, can make a detailed assessment of your financial goals and resources to develop an efficient and practical bankruptcy plan to regain control of your finances.
With quality legal representation on your side, declaring bankruptcy doesn’t have to be stressful.  Let The Bankruptcy Group help make the bankruptcy process simple and convenient for you.  Call our law offices at (800) 920-5351 today to discuss your California bankruptcy options in a free and confidential consultation.
The post How Long Does it Take for a Bankruptcy Discharge After the Meeting of Creditors? appeared first on The Bankruptcy Group, P.C..

Wynn at Law, LLC sees a wide variety of bankruptcy clients. Young families and retirees. Executives and hourly wage earners. Men and women, with or without spouses. The common thread through our entire family of clients is that – when it comes to bankruptcy – managing finances became a problem. It may have been suddenly. It may be long in the making. Either way, credit counseling is an important required part of the path that most find beneficial.
Pre-bankruptcy credit counseling became a requirement as a result of The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005: Twelve years ago and just three years before a recession brought a steady stream of bankruptcy filings. The significant reform of the bankruptcy system was passed by Congress and signed into law by President Bush and created tighter eligibility requirements. Because of that Act, most people filing for bankruptcy now undergo credit counseling in a government-approved program. Wait, there’s more. After the conclusion of bankruptcy proceedings, but before any debt can be discharged, debtors also participate in a government-approved post-bankruptcy financial management education program.
Don’t let the label ‘government-approved’ scare you off: These programs are harmless. You can find out which agencies have been approved for our area just by giving us a call.
Pre-bankruptcy counseling was put into place in 2005 to potentially steer people out of the courts if a repayment plan would work instead of filing. Counseling is required even if it’s obvious a repayment plan won’t work. Usually, by the time you’ve called Wynn at Law, you’ve already discovered your debts are too high and your income is too low.
The pre- and post-bankruptcy programs don’t shame you into submission. On the contrary, another set of eyes takes an impartial look at your situation in the pre-bankruptcy course. You might learn from your missteps. The second of the two required programs gives you solid financial management practices that will keep you from facing unmanageable debt again. That just makes sense: As much as Wynn at Law values your business, it’s a good thing when we don’t have repeat bankruptcy customers.
 
*The content and material in this original post is for informational purposes only and does not constitute legal advice.
The post Credit counseling makes sense now more than ever appeared first on Wynn at Law, LLC.

One of the first questions people often ask when they contact a Roseville bankruptcy lawyer is which debts bankruptcy can eliminate in California.  This article reviews whether different chapters of bankruptcy, including Chapter 7 and Chapter 13, can get rid of court fees and fines owed to the U.S. government by filers.

What Does it Mean if a Debt is Dischargeable?

Debts are divided into several categories when filing for bankruptcy in California.  For example, some debts are deemed “dischargeable” while others are classified as “non-dischargeable” debts.
Put simply, a dischargeable debt is a debt which the filer will no longer be liable for when the bankruptcy is discharged by the bankruptcy court.  Conversely, a non-dischargeable debt is a debt that will remain with the filer even after the bankruptcy case is over.  Unlike dischargeable debts, which are effectively wiped out, non-dischargeable debts must be paid regardless of a bankruptcy case’s successful completion.
Are Court Fees and Government Fines Dischargeable in Bankruptcy?
Generally speaking, many court fees are non-dischargeable in Chapter 7 bankruptcy, which means they cannot be wiped out by the discharge.  By comparison, Chapter 13 gives the filer time to pay off a greater array of court-related debts over the course of the three- to five-year plan of reorganization, but requires that such debts be paid in full.
Overall, the Chapter 13 discharge is more expansive than the Chapter 7 discharge, and allows a greater variety of debts to be discharged — including debts arising from a variety of penalties and fines.  To provide a few examples, the following fees and fines are dischargeable in Chapter 13, but not Chapter 7 bankruptcy:

• Debts arising from malicious, willful property damage (but not bodily injury — for example, injury or death related to DUI)
• Debts arising from divorce proceedings, such as property settlements

Unlike Chapter 7 bankruptcy, Chapter 13 can also create for filers an opportunity to discharge government fines and court fees such as unpaid bridge tolls, building code violation fines, and parking tickets.  However, even with the broad discharge afforded by Chapter 13 bankruptcy in California, there are still certain court judgments which cannot be discharged under any circumstances.  For example, regardless of whether an individual files for Chapter 7 or Chapter 13 bankruptcy, he or she will not be able to discharge debts arising from court-ordered alimony payments and/or child support payments.
Discharging Income Tax Debt in Chapter 13 and Chapter 7

Income tax-related debts are subject to a few unique regulations in bankruptcy cases.  In Chapter 13 and Chapter 7, income tax obligations may be eligible for discharge if certain criteria are satisfied.  A debt related to income tax may be discharged in Chapter 13 or Chapter 7 in California if the following conditions are met:

1.  The taxpayer did not commit fraud or tax evasion.
2. The tax return was filed a minimum of two years before the debtor filed for bankruptcy.
3. The tax return was due a minimum of three years before the debtor declared bankruptcy, including extensions where applicable.
4. The Internal Revenue Service (IRS) did not assess the debtor’s liability for the debt during the 240 days preceding the bankruptcy: the taxes must have been assessed 240 days ago or more.

Additionally, filers should be aware that, while bankruptcy can release the debtor from liability for the tax obligation itself, the discharge does not wipe out liens arising from tax-related debts.
CA Bankruptcy Lawyers Serving Roseville, Sacramento, and Folsom
Chapter 7 bankruptcy and Chapter 13 bankruptcy enable filers who follow the bankruptcy court’s rules to eliminate or restructure many of their most burdensome debts, including but not limited to credit card debt, medical debt, business debts, and debt related to personal loans.  Depending on the circumstances, it may also be possible to eliminate certain court fees, government fines, and debts related to income tax.
If you are struggling to manage debt related to medical bills, credit cards, older income tax obligations, or other sources of debt, Chapter 7 or Chapter 13 bankruptcy may be an effective and practical method of regaining control over your finances.  Consider talking to a Folsom Chapter 13 bankruptcy attorney about how filing for bankruptcy in California may be able to help you achieve your goals and protect your personal property and assets.
The Folsom Chapter 7 lawyers of The Bankruptcy Group have extensive experience assisting married couples, single individuals, and business owners with consumer bankruptcies and business bankruptcies, including Chapter 11, Chapter 13, and Chapter 7, in Roseville, Sacramento, and Folsom.  To arrange a free and completely confidential legal consultation about your bankruptcy options in California, contact The Bankruptcy Group as soon as possible by calling (800) 920-5351.
The post Does Bankruptcy Clear Court Fines in California? appeared first on The Bankruptcy Group, P.C..

The news we heard at Wynn at Law, LLC in February reported that Wisconsin bankruptcy filings last year were at their lowest level since 2007, before the recession. What does that mean to you? Absolutely nothing. Economists care about the number because it means more people are working (maybe) and more people are paying what they owe (probably).
It could also mean that more people in debt sought relief immediately after the mortgage crisis rather than waiting and struggling. There’s no shame in that. And there’s no shame in waiting until now to file if you’ve struggled trying to get caught up. About the only thing that fewer filings in 2016 means to you and me is that the bankruptcy judge may have a little less of a backlog of cases. Maybe.
On that note, one of the first questions I get is, ‘How long will the filing take?’ A lot less time than it took to get into debt, for sure. And a lot less time than it takes to continue to paddle upstream against interest rates, penalties, and harassing phone calls. Depending upon the shape your financial records are in, the process is around four to six months. That’s the filing process to get a ruling. If you have a Chapter 13 bankruptcy, you’re still involved with payment plans approved by the court for the following 36 to 60 months.
Before Wynn at Law, LLC files your Chapter 7 or Chapter 13 bankruptcy, however, most clients are required to go through pre-bankruptcy credit counseling and get a certificate. I’ll have more about this in next week’s article. Once we have that and file with the court, the Automatic Stay gives you an immediate break. Take a look at my earlier article on Automatic Stay.
There are several other milestones along the process including the creditor meeting I mentioned last week. Following the creditor meeting, there’s a 60-day window for the creditors to possibly challenge discharging your debt. So, from filing to the end of that 60-days, the average case in southeast Wisconsin will take four to six months. Or maybe a little less in light of the recent news.
 
*The content and material in this original post is for informational purposes only and does not constitute legal advice.