How does filing under Chapter 7 affect a person’s credit rating?
Most Common Questions about Bankruptcy Alief Texas, Filing a Chapter 7 case is usually reported to the credit reporting agencies but your credit report probably does not look too good to begin with. We have provided you with a list of how you can get credit and rebuild your credit immediately. Some financial institutions openly solicit business from persons who have recently filed under Chapter 7, apparently because it will be at least six years before they can again file under Chapter 7. If there are compelling reasons for filing under Chapter 7 that are not within the debtor’s control (such as an illness or an injury), some credit rating agencies may take that into account in rating the debtor’s credit after filing.
Are the names of persons who file under Chapter 7 published?
When a Chapter 7 case is filed, it becomes a public record and the name of the debtor may be published by some credit-reporting agencies. However, newspapers do not usually report or publish the names of consumers who file under Chapter 7.
Does a person lose any of his or her legal rights by filing under Chapter 7?
No. Filing under Chapter 7 is not a criminal proceeding, and a person does not lose any of his civil or constitutional rights by filing.
May employers or government agencies discriminate against persons who file under Chapter 7?
It is illegal for either private or governmental employers to discriminate against a person as to employment because that person has filed under chapter 7. It is also illegal for local, state, or federal governmental units to discriminate against a person as to the granting of licenses (including a driver’s license), permits, and similar grants because that person has filed under chapter 7.
Will a person lose any of his property if he files under chapter 7?
No. The debtor may keep his exempt property. Non-exempt property will be liquidated by the trustee and used to pay the debtor’s creditors in the order and priority set forth in the bankruptcy code. Exemptions may be claimed under either State or Federal law but not both.
When must a person go to court in a Chapter 7 case and what happens there?
The first court appearance will be about a 30 to 40 days after the case is filed for a hearing called the “meeting of creditors” or, §341 meeting. At this hearing the debtor will be placed under oath and questioned about his money, property and debts by the trustee. In most chapter 7 cases of consumers, none of the creditors appear in court; but if one does appear he will be allowed to question the debtor. There may be another hearing which the debtor may have to attend, only if he is reaffirming any of his dischargeable debt. It is not usually necessary for the debtor to testify at this hearing, however, as the purpose of the hearing is for the court to advise the debtor on certain matters. It is imperative that a debtor attends his meeting of creditors. Failure to attend will usually result in his case being dismissed.
What happens after the meeting of creditors?
After the meeting of creditors, the trustee may contact the debtor regarding the collection or existence of non-exempt property or documents relating to non-exempt property, and the court may issue orders to the debtor. The trustee may request your canceled checks, bank statements and income tax returns. These orders will be sent by mail and may require the debtor to turn certain property over to the trustee, or provide the trustee with certain information. The debtor should contact his attorney if there is nay question with regard to any of these matters.
What is a trustee in a Chapter 7 case, and what does he do?
The trustee is an officer of the court, appointed to gather the debtor’s non-exempt property, turn it into cash, and pay the money out to the proper creditors. In addition, the trustee has certain administrative duties in a chapter 7 case, and is the officer in charge of seeing to it that the debtor performs the duties required of him in the case. A trustee is appointed in a chapter 7 case, even if the debtor has no property for the trustee to collect.
What are the debtor’s responsibilities to the trustee?
The law requires the debtor to cooperate with the trustee in the administration of a chapter 7 case, including the collection by the trustee of the debtor’s non-exempt property. If the debtor does not cooperate with the trustee, then his case may be dismissed and his debts may not be discharged. Concealment of assets by the debtor from the trustee is a federal crime. The making of false oaths is also a crime. The bankruptcy schedules and statement of financial affairs are signed under oath. The debtor must make full disclosure of all assets, liabilities, lawsuits and property.
Our toll-free telephone number is at 1-866-912-9832. You need to learn about all of your options including information about credit, debt, bill consolidation services and federal bankruptcy law. Please call us at 1-866-912-9832 so that we can discuss your case.You can also visit our web site: www.busby-lee.com. Our attorney fees are reasonable, competitive, and court- approved. It is important that you call us soon. Our office is conveniently located near the Galleria and Highway 59 on Hillcroft between Richmond and Westheimer. We also maintain a branch Katy, Texas office at 1804 Snake River Road, Suite, C Katy, Texas 77449 Call us toll-free at 1-866-912-9832 for directions to our office.
We provide bankruptcy services in the greater Houston metro area including the cities of Katy, Sugarland, Pearland, Friendswood, Clear Lake and Galveston. We also handle cases from The Woodlands, Spring and Tomball and cases in Baytown and Channelview.
We handle bankruptcy cases in all of these counties: Brazoria, Chambers, Galveston, Matagorda, Austin, Brazos, Colorado, Fayette, Fort Bend, Grimes, Harris, Madison, Montgomery, San Jacinto, Walker, Waller, Wharton