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Prior to 2005, there were qualifications in place to qualify for a chapter 7 bankruptcy. Prior to 2005, the qualifications for chapter 7 were based on your monthly budget.

We represent people and businesses in both Chapter 7 and 13 bankruptcy cases. We meet with people and businesses to counsel them on their debt resolution options so that they can make an informed choice on whether bankruptcy can help them meet their goals.

Chapter 13 is essentially a payment plan that you organize through the court system. Think of it as a consolidation loan with teeth.

Mortgage modification is not part of bankruptcy. When we talk about mortgage modification, this is something that is relatively new. In general a mortgage modification is when your lender determines whether they will allow you to change the terms of your mortgage and modify it.

The chapter 7 trustee pays the creditors through a notification procedure. In a chapter 7, 98% of the time we’re able to protect all of our clients’ assets.

A chapter 7 bankruptcy trustee is a lawyer hired by the court and appointed to chapter 7 bankruptcy cases that are filed in a particular county or jurisdictions. The role of the chapter 7 trustee is to review the documents filed by the debtor and in chapter 7 to make sure that the assets are properly listed and that the exemptions claims are appropriate under the circumstances.

There are 2 things you must do after your case is filed: (1) attend the meeting of creditors (aka the 341 hearing); and (2) complete a debtor’s education course via phone within 75 days from the date your case was filed. The 341 hearing is sometimes referred to as the meeting of creditors because your creditors can attend the meeting and ask you questions about the information contained in your petition.

A reaffirmation is an official way to “reobligate” yourself on the loan. This involves the lender sending us a reaffirmation contract to be signed by you.

“Heads in beds” refers to a method of how to calculate the size of the household for means test purposes. The first obvious household determinant would be, how many dependents you are claiming on your tax returns.

The questions involve broad information in your petition, including assets, debts, income, expenses and transfers or transactions. This is one of the differences between a 341 meeting in a chapter 7 and a chapter 13. In a chapter 7 341, the chapter 7 trustee is really more interested in assets and less interested in income and expenses.