A couple of weeks after you file for bankruptcy, you will receive a notice from the bankruptcy court to attend a meeting of creditors. This meeting is scheduled under Section 341a of the bankruptcy code. The bankruptcy court will also notify the creditors you listed in your bankruptcy papers. A trustee runs the meeting and, after swearing you in, may ask you questions about your bankruptcy and the documents you filed. The questioning by the trustee usually only lasts for a few minutes.

Bankruptcy is a procedure brought in federal court. About 6 months after your case is filed, the bankruptcy court in the area where you reside will issue an Order declaring all your unsecured debts discharged. That means your unsecured creditors which you had before you filed bankruptcy will then forever be barred from contacting you ever again to collect on a debt.

The laws regarding the seizure of property vary from state to state. In Oklahoma, exempt assets in property include: Homestead - Real property or manufactured home to an unlimited value up to 1/4 acre, otherwise up to $5,000 for up to one acre in city or town and up to 160 acres elsewhere. Insurance - Includes assessment or mutual benefits, fraternal benefit society benefits, funeral benefits prepaid & placed in trust, group life policy or proceeds, and limited stock insurance benefits.

If you are able to make any meaningful payments (even a relatively small percentage of payments) to your unsecured creditors (in addition to your normal living expenses), you will probably be required to file a chapter 13 bankruptcy instead of a chapter 7 bankruptcy.

A:Title 11, which is the United State Bankruptcy Code, is broken down into Chapters. "Chapter 7" of Title 11 deals with liquidation bankruptcy.

Chapter 7 bankruptcy will wipe out (discharge) most of the average person's debts, i.e., he will no longer be under a legal obligation to pay them.

Chapter 7 bankruptcy can only be filed once within a Congressionally-mandated period of time. If the debtor gets into even worse financial trouble down the road, then he may not be able to obtain relief through Chapter 7 for his new financial problems. Another negative consequence of Chapter 7 bankruptcy is that some or all of the debtor's assets may be taken away by the bankruptcy court in order to pay off his debts.

A Chapter 7 bankruptcy is sometimes called a liquidation. All of your non-exempt property is turned over to the Chapter 7 trustee who sells it and uses the money received to pay your unsecured creditors on a pro-rata basis. You can then receive a discharge and get a fresh start.

Chapter 7 bankruptcy protection is a court ordered hold on all your personal assets and property. A bankruptcy trustee will determine what property can be liquidated in order to satisfy any outstanding debts.

A Chapter 7 Bankruptcy is called a "liquidation" whereas a Chapter 13 Bankruptcy is called a "reorganization." Each is generally discussed below. In a Chapter 7 Liquidation, the debtor assembles all assets, sets aside exempt assets, and decides what to do with secured assets.

NO! Often people file bankruptcy before they are seriously delinquent on their monthly debts. If you can barely make the minimum payments required on your credit cards, or if it appears that you will not be able to make payments as they come due, it may be better for you to file bankruptcy rather than let your situation deteriorate. YES! A federal injunction (automatic stay) goes into effect immediately when a person files bankruptcy, which stops the foreclosure.