Home / Archive by Category "FAQ’s" (Page 2)

Archives

Who is the bankruptcy trustee and what do they do?

In every case under Chapter 7 or Chapter 13, a trustee is appointed to supervise your case. Typically most Chapter 7 cases do not contain any non-exempt property. In other words, most Chapter 7 individuals, couples, and businesses do not have assets which exceed the exemption allowances – these cases are referred to as “no asset” cases. In these cases, the trustee evaluates your schedules, statements, and exemption claims and makes sure that you carry out your stated intentions with respect to loans that you want to reaffirm.

What is a reaffirmation agreement?

With a reaffirmation agreement, you agree to pay a debt that you otherwise could have discharged. For example, you have a car loan and you want to keep the car. To do that, you have to reaffirm the car loan and keep making payments – the same is true with a home mortgage loan – if you want to keep the house, you reaffirm the mortgage note and keep making your payments. In both cases, you could have surrendered the car or walked away from the house and the debt could have been discharged or wiped out.

What is an exemption?

An exemption is a privilege or an allowance which allows you to retain certain amounts of property in certain classes including your house (homestead) and personal property including furnishings, jewelry, automobiles, and other property, as well as your 401K or other retirement plan. You don’t lose everything. The exemptions give you your “fresh start.”

1 2 3 4 7