FAQ For Current Chapter 7 Clients
Below are some of the common questions clients have about their case. Even though the answers are a bit generic, we hope this information is helpful. The information provided here is offered for informational purposes only; it is not offered as and does not constitute legal advice. You should always confirm your specific situation with your attorney.

Chapter 7 Questions
1.    I am still getting calls from creditors. What do I do?
2.    Do I have to go to a court hearing?
3.    Where is the meeting of creditors held?
4.    What will happen at the meeting of creditors?
5.    Will an attorney be with me at the meeting of creditors?
6.    Do I need to bring anything to the meeting of creditors?
7.    What happens if I accidentally miss my meeting of creditors?
8.    I forgot to include a creditor. What can I do?
9.    I received an Adversary Complaint from one of my creditors. What is this and what should I do?
10. When will I receive my discharge from the court?
11. What is the "personal financial management course"? Is it mandatory?
12. What do I do about creditors with liens on my property (cars, appliances, etc.)? What is reaffirmation and redemption?
13. What is the difference between discharge and dismissal?
14. How do I clean up my credit after bankruptcy?
15. What if I receive an inheritance while in my Chapter 7 bankruptcy?
16. I filed a chapter 7 and now want to sell or refinance something (my house, car etc). May I?

Chapter 7 Answers
1. Sometimes it can take a month for creditor records to be updated to show you have filed bankruptcy. Always tell the creditor you have filed, give them your case number, and refer them to us.

back to top

2. In most cases, you do not have to go to a "court" hearing. You have to go to a "Meeting of Creditors", but this is a short meeting with the trustee and no judge is present. However, if your case includes a debt for personal property you are intending to keep, like your car, then the creditor will ask you to agree that you will continue to owe the debt after bankruptcy. This agreement is called a Reaffirmation Agreement. Once you sign that agreement and send it to the Court for approval, the Court will set a special hearing to ask you some simple questions to make sure you understand the agreement and can afford to make the payments.

back to top

3. For Portland Chapter 7 cases, the meeting of creditors is at the United States Trustee's Office at the Gus Solomon U.S. Courthouse, 620 S.W. Main Street, Room 223, Portland, Oregon 97205. Some parking is available on the street, and there are several pay parking garages nearby. "Smart Park" garages are located at 1st & Jefferson or at 4th & Yamhill for about $1.25 per hour. For cases filed outside of Portland, you will receive a notice from the court and a letter from us with the location.

back to top

4. At the meeting of creditors, the trustee will ask a series of simple questions, the same as we asked you in our office consultation. An example of a question asked is, "Do you expect any tax refund for this year and how much?"     The trustee is looking for non-exempt assets or to identify other legal issues in your case.    Your attorney almost certainly will have discussed those issues with you well before the meeting.    Creditors are allowed to attend the meeting and ask relevant questions if they want, but few ever attend.

back to top

5. Yes, an attorney will be with you at the meeting. If your hearing is in Portland, one of our attorneys will attend with you. If your hearing is outside of Portland, we usually arrange for an experienced local bankruptcy attorney to attend the hearing with you.    Either way, the attorney will have reviewed your file thoroughly prior to the hearing, and will meet with you shortly before the hearing to answer any last-minute questions.

back to top

6. In every bankruptcy case, the debtor is required to provide two pieces of identity at the creditors' meeting, one of which verifies the social security number. The preferred proof is a driver's license and social security card. Other acceptable proof includes: (1) government ID, (2) a state picture ID, (3) a U.S. passport, (4) a military ID, (5) a resident alien card, (6) a medical insurance card, (7) a pay stub, (8) a W-2 form, (9) an IRS Form 1099, or (10) a Social Security Administration report.

You will also need to bring a copy of statements for all bank accounts showing the balances on the date your case was filed plus a copy of your paystub through the date your case was filed.

The Trustee assigned to your case may send you a letter before your hearing asking you to complete a questionnaire and bring additional documents. If you fail to bring the requested documents, you may have to go to another hearing thereby increasing the time you are in bankruptcy and increasing your legal costs.

back to top

7. If you miss the meeting of creditors, you should immediately contact us. Depending on the circumstances, we may be able to file a motion asking the Court to reschedule the meeting. The decision is completely up to the judge. If the motion is denied, your case is dismissed and you will need to file a new case.

back to top

8. As soon as you realize you missed a creditor in your bankruptcy filing, call the paralegal handling your case to see if you still have time to add the creditor. There is usually a fee to add creditors.

back to top

9. It usually means a creditor is seeking a declaration by the court that its particular debt should not be discharged as part of your case. Contact us immediately so we can review the complaint with you and discuss your options.

back to top

10. A notice of discharge is typically issued by the Court 60-75 days after the meeting of creditors. This assumes: (1) no creditor or trustee has filed an objection to your discharge; and (2) you have completed your financial management course and filed the certificate of completion with the court. The course can be done in person, via telephone, or by the internet. The list of approved agencies for the course can be viewed here: www.usdoj.gov/ust/eo/bapcpa/ccde/index.htm

If you do not receive your discharge from the court after 75 days, please contact our office.

Although a discharge is issued, you are not officially out of bankruptcy until the Court declares the case closed. Sometimes, a case can stay open for many months after issuance of a discharge. For example, in a case in which the Trustee determines that he wants money from you in exchange for keeping a non-exempt asset, the Court will not close the case until you send the Trustee the money and he files his final report.

back to top

11. All individuals in Chapter 7 are required to go through a "personal financial management course" in order to get their discharge. A certificate of completion must be filed with the court within 45 days of the meeting of creditors. Get the certificate to us and we will file it with the court with the appropriate forms. The list of agencies approved to offer the course can be viewed here: www.usdoj.gov/ust/eo/bapcpa/ccde/index.htm

back to top

12. You have three options in a chapter 7 case.

• First, you can "surrender" the property back to the creditor and discharge the debt.

• Second, you can "redeem" the property which means paying the creditor a lump sum based on the smaller of the amount you owe or the value of the item. If you cannot agree on the value, you can ask the court to determine it. You may be able to finance the lump sum payment thru family, friends, or companies that provide "redemption financing". . The sites listed below are operated by companies who provide that type of financing. Snyder & Associates does not endorse any particular redemption lender, these sites are provided for informational purposes only:

722 Redemption
http://www.722redemption.com/

Redemption Financial Services
http://www.freshstartloans.com/fslc/home.asp

• Third, you can keep the property and continue to pay the debt, but this option will usually require you to sign a "reaffirmation agreement" and you will once again be legally obligated to pay the debt. If you reaffirm a debt and fail to make the payments as agreed, the creditor can repossess the property and pursue you for any balance owed after they sell it. For a reaffirmation agreement to be valid, it must be approved by the court. You must attend a hearing where the judge will ask you whether you understand the agreement and can afford the payments. You have 60 days after the agreement is filed with the court to change your mind and rescind it.

back to top

13. Obtaining a discharge is the goal of your case. It means the court has declared that your dischargeable debts are forever non-collectable. A dismissal is not good. It means the court has kicked you out of bankruptcy without a discharge. Usually a case is dismissed because you have failed to do something important in your case, after ample warning. If your case is dismissed, it may be possible to file a new case.

back to top

14. A bankruptcy appears on credit reports for 10 years. You can rebuild your credit after bankruptcy. One approach is the use of a secured credit card. A secured credit card is simply a standard MasterCard or Visa backed by an interest-bearing savings account. Because the credit is secured by your cash deposit, the lender is assured you will stay within your credit limit and the debt will be paid. Only charge amounts that are within your means and make your payments on time. A regular payment pattern will help qualify you for unsecured increases in your credit limit. Other methods include using your savings account as collateral for a small loan or having a friend or relative co-sign a loan upon which you make the payments. Paying the loan on time will establish a new credit record with that bank. Using one of these methods over a one to two year period will help you establish new credit for purchasing such things as a home or an automobile. Other tips are available at www.bankrate.com. Also, there is a good book called "Bounce Back From Bankruptcy" by Paula L. Ryan.

back to top

15. You need to let us know immediately. Depending on your circumstances you may be able to keep your inheritance. Do not spend any of it until you speak with your bankruptcy attorney.

back to top

16. While you are in an open case, all your assets are under the technical control of the Trustee. So, it is only after the case is closed that you are allowed to sell or refinance something, like your house. If you must sell or refinance before your case is closed, call our office as we may be able to get the Trustee to allow it.

back to top