Scenario

[inhocknow]

Hello folks, thats for all of your help. I would love to know if I understand the whole process correclty.
You file for bankruptcy.
You get your 341 meeting which is usually scheduled at around the 30 day point after filing.
The creditors have 60 days AFTER the 341 meeting to object or dispute the dischargeability of any of the debt. After the 60 days, your case gets closed?

Am I leaving out anything?

Thanks for all of your kind help.

[HHM]

Close...

After 60 days from the date of your first scheduled 341 meeting, your case gets "discharged". If you are a no asset case, then your case will close at around the same time; however, if your case is an asset case (i.e. the trustee wants your tax refund), the case will stay open (but the case will be discharged).

As for everything else, you are correct (although the timeline on the 341 meeting can be up to 45 days from the date you file BK.

[PaKettle]

Hello folks, thats for all of your help. I would love to know if I understand the whole process correclty.
You file for bankruptcy.
You get your 341 meeting which is usually scheduled at around the 30 day point after filing.
The creditors have 60 days AFTER the 341 meeting to object or dispute the dischargeability of any of the debt. After the 60 days, your case gets closed?

Am I leaving out anything?

Thanks for all of your kind help.

Don't forget the pre-bankruptcy counseling class and the post-filing debtor education class.
Sometimes the 341 is scheduled only 2-3 weeks after filing, from what I hear.

[inhocknow]

Thanks for all of your help.
I have another question. What if 4 creditors want to challenge the dischargeability of the debts owed to them? This will cause 4 different trials? Do they always go to trial? Can the trustee toss out their disputes? Thank you.

[PaKettle]

Thanks for all of your help.
I have another question. What if 4 creditors want to challenge the dischargeability of the debts owed to them? This will cause 4 different trials? Do they always go to trial? Can the trustee toss out their disputes? Thank you.

It is my understanding that it doesn't "go to trial", in most cases, the trustee just makes a decision on whether or not the objections are valid or not and if they are, then your attorney and you work out an agreement with the creditor(s). My attorney said you usually end up paying only about half in that case.

The real problem, as I understand it, is not so much that, but if the trustee sees fraud in the case (i.e. you knew you couldn't pay back the money before you borrowed it) he can dismiss your case, leaving you to be open to wage garnishments etc. from the creditors. This is somewhat hard to prove, however, if the debts are over 3 months old. However, according to my attorney, even debts 6 months old can occasionally be problematic when they are balance transfers. The trustee will them want to see what the money was used for in some cases.

A moderator will correct me if I'm wrong, but this is my understanding.

[HHM]

Let me correct one thing from PaKettle's post...

When it comes to "creditor" objections, the trustee IS NOT INVOLVED. If the the creditors actually file an objection, then EACH objection is set for a hearing date before the BK judge. So yes, each creditor objection gets a separate trial/hearing (unless, of course, you come to some sort of settlement before the hearing date). Most of the time, there is no actual hearing, because usually a settlement is reached that is in both the creditor's and debtor's interests.

[PaKettle]

Let me correct one thing from PaKettle's post...

When it comes to "creditor" objections, the trustee IS NOT INVOLVED. If the the creditors actually file an objection, then EACH objection is set for a hearing date before the BK judge. So yes, each creditor objection gets a separate trial/hearing (unless, of course, you come to some sort of settlement before the hearing date). Most of the time, there is no actual hearing, because usually a settlement is reached that is in both the creditor's and debtor's interests.

Thanks for clarifying.
So, the trustee can and sometimes does raise his own objections?

And, then, the creditors can and sometimes do also raise objections?

And any creditor objections are not handled there with the trustee at that meeting, they are only scheduled later, giving you time to settle with them before the scheduled hearing?

[inhocknow]

Thanks for your help.
Do they normally settle for less then the amount in question?
Is this a percentage of the total amount not counting the interest and fees?
Thanks again for all of your kind hearted help.

[HHM]

Thanks for clarifying.
So, the trustee can and sometimes does raise his own objections?

Yes, but trustee objections relate to your asset valuations, expense claims, and claims for exemptions

And, then, the creditors can and sometimes do also raise objections?

Yes, creditors only raise objection as to whether their debt can be dischaged

And any creditor objections are not handled there with the trustee at that meeting, they are only scheduled later, giving you time to settle with them before the scheduled hearing?

Correct. If a creditor files a formal objection, a hearing is set before the BK judge...the trustee is NOT involed as the dispute is between you and the creditor.

Do they normally settle for less then the amount in question?

Yes, in order to avoid the cost and hassle of actually holding an objection hearing, a creditor will usually offer a settlement for less than is owed plus a payment plan (but not always)

Is this a percentage of the total amount not counting the interest and fees?

The settlement is usually based off of the TOTAL amount due (including all accumulated interest and fess) at the time you file BK.

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