The bankruptcy court exercises control over property and debts by appointing the official called "Trustee" to manage the petitioner's case and proceedings. The trustee (or staff) examines the papers to ensure that they are fully documented and look for property to sell for the benefit of creditors. Their primary duty cover responsibilities from scrutinizing the legal papers to ensuring that the creditors are paid off as much as possible. They also check all the financial transactions carried out by the petitioner during the previous year.
Shortly after filing the bankruptcy papers, the petitioner receives a notice of the date of the creditors' meeting. The trustee convenes the meeting and, after the petitioner is sworn in, may ask him / her questions pertaining to bankruptcy and about the documents filed. He may also enquire whether any asset had been sold in the previous year or if the documentation furnished is 100% authentic.
As the question of domicile residence requirements are in force at the court of law, it is mandatory to be aware of the length of stay of the petitioner in the state from where he / she is filing. With the filing of bankruptcy petition, an "Order for Relief" under the bankruptcy law would be initiated. This order of relief includes an "Automatic Stay" that prevents creditors from harassing the petitioner further with collection drives.
This also includes most law suits or legal proceedings pending or currently active against the debtor and debtor's properties. Filing the petition is the initiator of the processes that may lead the debtor experiencing genuine financial difficulties to find the means to eliminate substantial portion of their financial obligations.
Any filer seeking relief from bankruptcy court must be fully cooperative in handling all matters related to the bankruptcy, including dealing with the trustees. After the hearing between the petitioner and the trustee, the bankruptcy relief may not be meted out immediately after the creditors' meeting. The petitioner should be patient and be aware that the case would proceed through the bankruptcy court process in an orderly manner. Only when there are no objections or problems with the bankruptcy proceedings, then the court may move forward to grant bankruptcy.
The whole process is a fact-finding procedure. But in the event of any alarming facts emerging at the meeting, then either trustee or creditor(s) can file a motion or an adversary proceeding in the bankruptcy court for judge's consideration.
In addition, after filing a bankruptcy case the individual debtor must complete a financial management instruction course before he / she is entitled to receive a discharge. Throughout the years, the debt relief team has seen many challenging and unique problems arise during the course of bankruptcy but these have been in most cases successfully addressed as the objective of the bankruptcy law is to help debtors start afresh.
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