Almost never. You do need to attend a 5-to-10-minute meeting, accompanied by your attorney, which is usually straightforward.
If you lost money through garnishment during the 90 days BEFORE filing bankruptcy, that money may be returned to you or a favored creditor.
Bankruptcy doesn’t just write off debts. It can undo bad things that a creditor has done to you. Like a judgment lien on your home.
Filing bankruptcy doesn’t just stop creditors’ present and future collection efforts against you. It might recoup money you’ve already lost.
Skip the “means test” and qualify for Chapter 7 if you fit within these military-related exemptions. But they ARE narrow ones.
The “meeting of creditors” is for finding any kinks in your payment plan, and hopefully straightening them out.
In most Chapter 7 “straight bankruptcy” cases the “meeting” is short and straightforward. But you do need to take it seriously.
What are the roles of the debtor, the creditors, the bankruptcy clerk, the judge, the Chapter 7 and 13 trustees, and the U. S. Trustee?
The same way that you can’t START a bankruptcy case without “credit counseling,” you can’t FINISH without “debtor education.”
“Credit counseling” is not really counseling. It’s not difficult, but a necessity before you can file a bankruptcy case.
Put aside all the detailed advantages and disadvantages of these 2 options. The core difference is how each uses time in your favor.
You’ll be much more comfortable during your bankruptcy case if you know the system’s cast of characters.
Everything about bankruptcy revolves around its Chapters.
You can file a new case 8 years after filing before (so, now or very soon), or possibly only 6 or 4 or 2 years after, or maybe even with no delay.
After filing bankruptcy, you hope you never have to do that again. But it’s good to know that you can if you need to.