The creditors meeting is a vital step in the Chapter 7 bankruptcy process that happens after the debtor files his or her necessary bankruptcy paperwork. After the paperwork is filed, the bankruptcy trustee will calendar the creditors meeting.
During the creditors meeting, the trustee goes over the paperwork associated with the bankruptcy and puts together all necessary information associated with the process. In the event that a debtor does not make it to the creditors meeting, the bankruptcy trustee could decide to issue a motion to dismiss the proceedings, so it is paramount that debtors never miss their creditors meeting. Additional reasons for dismissal could be the debtor’s failure to provide his or her income tax returns.
Another issue that will be brought up in the creditors meeting is the issue of nonexempt property. When it is shown that the filer has nonexempt property, it may be necessary for the filer to either surrender the property or give the trustee money that is equal in value to the property. In other situations, where the property has little value or represents a big challenge to sell, the trustee could decide to abandon the property and thereby allow the filer to keep it, even if it is not exempt.
For Lauderdale residents planning to file for Chapter 7 proceedings can rest-assured that their bankruptcy lawyer will help them prepare for their creditors meeting. Although the process is fairly straightforward, a skilled and experienced bankruptcy lawyer may be able to help Florida residents navigate their bankruptcies in a way that helps them keep as much of their property as they can.
Source: FindLaw, “Chapter 7 Bankruptcy Rules Overview,” accessed Oct. 07, 2016