Sometimes in bankruptcy doing the honestly right thing can cause you major problems. Making preference payments is a good example of this.
The Chapter 13 trustee is an important player in your “adjustment of debts” case so it helps to know how to deal with him or her.
Chapter 7 “asset” cases may sound scary. They needn’t be. We walk you through a very straightforward example to demystify this.
Just because you own something that isn’t exempt does not necessarily mean that your Chapter 7 trustee will liquidate it. Maybe not.
Besides your creditors, the main person you need to be careful about in a “straight bankruptcy” Chapter 7 case is the trustee. Who’s that?
Preferences can be dangerous but can also present potential opportunities. So although not all that common, they’re worth knowing about.
Usually it’s not hard to avoid getting into a dispute with your trustee. But you need to know the law and follow it.
Which assets that you sell or give away before filing bankruptcy will be a problem, and which won’t?
Doing what you believe is the right thing can backfire, if you pay a special creditor before you file bankruptcy.
Not a good idea. If you do your friendly creditor may have to turn over to the trustee whatever you paid it. So it wonât be so friendly.
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.
In Chapter 13 the trustee is a gate-keeper, overseer, and payment distributor. Quite different than in Chapter 7.