Chicago Bankruptcy Lawyers & Attorneys

The answer is yes, you are going to have to attend a court date. It is actually called a 341 meeting of creditors. It is a meeting required under section 341 of the bankruptcy code. It is where you appear with your attorney, you’re sworn in, and a trustee appointed by the bankruptcy court will ask a series of questions based on the documents that were filed. The trustee’s job is to determine whether or not there are any assets that can be administered and paid to creditors. In 99% of the Chapter 7 bankruptcy cases, there are no assets to be administered. The trustee makes a finding of no assets and you and your attorney walk away from the meeting, with a huge sense of relief. You get a fresh start. Now, it is not final until you receive your discharge papers, which takes another 60 – 90 days after your meeting. But, for all practical purposes, once you appear in front of the trustee and have satisfied the trustee that there are no assets to be administered you are almost home free. So, you will have to appear in court once. You may have to appear in court another time typically on a reaffirmation agreement hearing if the court wants to hear your testimony as to how you can pay for a reaffirmed debt going forward. If the court is not convinced that you can pay for the reaffirmed going forward, then the reaffirmation agreement, signed by you and the creditor will not be allowed. But, in the overall majority of cases, the judges are allowing folks to reaffirm on chosen debts. The judges also understand that with regard to vehicles, people have to get to work; they have to provide for their families. The court simply wants to make sure that the individual knows that he is going back on the hook for that debt. Back on the hook for a debt that can be eliminated. This is important because if anything should happen in the future and the auto is repossessed, the individual is on the hook for any deficiency.