Peter Francis Geraci - Bankruptcy Blog - Chapter 7 & 13

Under Chapter 7, you submit a list of your debts, and a list of your assets. I only file Chapter 7 cases where your assets are exempt from creditors, and you will keep them. After your attorney files this list, or petition, the Clerk of the U.S. Bankruptcy Court sends notice that you will appear at a "meeting of creditors" to testify about your petition. That meeting is short, your attorney goes with you, and any creditors that want to ask you questions relating to your debt, can do so. Typical questions are: "Do you have a car?, What happened to the merchandise you bought?" and How much is your house worth?" These are questions you have already answered in your petition, so the "meeting of creditors" is often very short and painless.

Next, under Chapter 7, the creditors have 60 days to object to your discharge in bankruptcy. Your attorney will be working on any deals, or "reaffirmations", which creditors who financed your house or car or other things will want. Then the Bankruptcy Judge will issue a notice of a hearing on these "reaffirmations", at which time you will appear to state that you want to make these deals, and then, the Court will issue a "Discharge", which states that all dischargeable debts are gone. Of course, debts which are exempted from discharge will remain, such as certain taxes and student loans.