Parties in a Virginia Chapter 7 Bankruptcy
There are a lot of moving parts in a Virginia Chapter 7 Bankruptcy. Knowing the different players and the common terminology for those parties can help demystify the process. The following is provided by our provided by our Williamsburg Newport News Bankruptcy Attorneys.
The DebtorThe debtor is the individual filing the petition in a Virginia Chapter 7 Bankruptcy, the person seeking discharge of debts owed to other individuals or institutions. The debtor can be an individual or a business. Sometimes debtors file together as joint debtors, like a husband and wife.
The TrusteeA bankruptcy trustee in a Virginia Chapter 7 Bankruptcy is charged with analyzing the bankruptcy and collecting and selling debtor's non-exempt assets to pay creditors. The trustee has broad discretion in handling the bankruptcy. He/she runs the meeting of creditors, where he/she will ask the debtor questions about the debtor's petition for bankruptcy and attached schedules. The trustee may also file certain motions as appropriate and based on the specific facts of the Chapter 7 Bankruptcy.
The JudgeUnless there is some motion put before the Court, there is generally little involvement by a judge in a Virginia Chapter 7 Bankruptcy. The judge may need to rule on Motions by the trustee, Motions by the debtor, or Motions filed by secured creditors seeking relief from the automatic stay to collect on delinquent secured loans.
The AttorneyA debtor may wish to retain an attorney to assist in completing the Chapter 7 Bankruptcy. An attorney will help collect the necessary documents. The attorney will analyze the documents to determine whether a Chapter 7 Bankruptcy is appropriate. He/she will prepare the necessary court documents for filing. The attorney should accompany the debtor to the meeting of creditors and assist the debtor in preparing for that meeting. The attorney should guide the debtor from the initial consultation to the reporting of the discharge to the various credit reporting agencies.