Recent FAQs

Will I have to go to court?

Bankruptcy debtors are understandably anxious about going in front of a judge during their bankruptcy. However, court appearances should not be major worry for most debtors. Many uncomplicated or uncontroversial cases proceed along to discharge and close without having a hearing in front of a bankruptcy judge. When there are hearings, some are routine matters that can be handled by the debtor's attorney alone and at others nothing will be asked of the debtor who is present. Only a small percentage of debtors actual speak a word in front of a bankruptcy judge.

What is my meeting of creditors?

A meeting of creditors, also known as a 341 meeting, is a meeting that occurs in every bankruptcy case and permits questions to be asked of the debtor(s). Despite its name, creditors generally do not attend a meeting of creditors. Instead, the bankruptcy trustee or his or her representative will be the primary individual asking questions. Your debtor's attorney attends the meeting with you. At Fabricius & Fabricius PLLC, our standard practice is the that same attorney who assisted you pre-filing will accompany you at the meeting.

Can I file bankruptcy secretly?

A common concern is whether friends, family, neighbors, and coworkers will learn of your bankruptcy. While bankruptcy is not a secret process, and cannot be made secret, bankruptcy filings are not widely publicized. In most cases, people who you do not already share your financial information with will not learn about your bankruptcy. Bankruptcy is a very commonplace occurrence, and except in the case of public figures, a personal bankruptcy filing is not a newsworthy event.

Can I file bankruptcy without an attorney?

Yes, as a legal matter, you can file bankruptcy without an attorney. Termed a "pro se filing", many people across the country file without hiring a bankruptcy lawyer, particularly under chapter 7. The primary benefit to filing without an attorney is saving the out of pocket costs of hiring an attorney in chapter 7, or slightly reducing the

Will I lose my pets in bankruptcy?

It would be very unusual to lose pets in bankruptcy. While pets are quite valuable to their owners, few people are interested in buying previously owned pets. Hence, the market value for a pet is low, and the market value is what is important for most bankruptcy purposes. Given this market valuation, it is usually possible to claim the value of a household pet as exempt under statutory property allowances.

What does abandonment of property by a trustee mean?

The debtor's property under the administration of the bankruptcy trustee is considered the bankruptcy estate. When a trustee abandons property, he or she has released it from the estate. Property possessed by the debtor is typically abandoned to the debtor; however, property encumbered by liens might be abandoned directly to the secured lien holder for repossession.

What happens if I change my mind about filing bankruptcy?

Sometimes circumstances change and bankruptcy might no longer be a good idea. If you haven't filed yet, you are under no obligation to do so. If you have already filed, which chapter you have filed under becomes critical. Debtors can voluntarily dismiss a chapter 13 bankruptcy at most any time. Since Chapter 13 bankruptcy is based on your future income, whether you commit that income to a bankruptcy plan is voluntary.

Do I need to file with my spouse?

The bankruptcy code provides the option for married couples to file bankruptcy together with a single joint petition. It is only an option, and both spouses do not need to file bankruptcy. Bankruptcy remains an individual choice and option for each spouse.

What property will I lose in bankruptcy?

What property, if any, you will have to turn over to your creditors depends on several factors. First, you are entitled to certain property allowances called exemptions. Most debtors in North Carolina will be able to claim North Carolina statutory exemptions. There are several of these exemptions, but examples would include $35,000 in value for a homestead and $3,500 in value in a car. Furthermore, in a chapter 13 repayment plan, you do not have to turn over property worth more than the allowances if you pay the extra value into the plan from another source, such as future wages.

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