University Park Bankruptcy Lawyer States That 95% Of Debtors Never S...

Chapter seven bankruptcy is often referred to as a total liquidation.  This is somewhat of a misnomer because not all assets that belong to a debtor are liquidated.  And not all debts that are owed by a debtor are liquidated.  Chapter seven is part of the government’s attempt to balance the relative rights of creditors and debtors.  The parties that are typically involved in administering justice in a bankruptcy case are the bankruptcy judge and the bankruptcy trustee.  In most cases in Chapter seven bankruptcies, very few debtors get to see the judge.  In 95 percent of all cases, there is no controversy that rises to the level that a judge’s involvement is needed.  Therefore, only five percent of all cases require a judge to determine whether or not a debt is still owed or if a debtor is entitled to a discharge.  But all cases necessarily involve a bankruptcy trustee.  The bankruptcy trustee will interview the debtor, under oath, relative to the schedules that were signed and filed by the debtor’s attorney.  Provided the debtor answers the questions with certainty and provided nothing new is disclosed, the meeting should conclude with a finding of no assets.  If not, the trustee will either continue the meeting to a future date or send out a notice to creditors to file proof of claims.  It is from those proof of claims that creditors may receive a disbursement of un-exempt assets of the debtor.