The Meeting Of Creditors The Bankruptcy Code provides that "[w]ithin a reasonable time after the order for relief in a case under this title, the United States trustee shall convene and preside at a meeting of creditors." 11 U.S.C. S 341(a). The responsibility for concluding or adjourning a S. 341 meeting lies with the Trustee. That responsibility must be carried out and concluded before the date set for objection to the discharge of debtors. The policy of the Executive Office of the United States Trustee as expressed in its "Handbook for Chapter 7 Trustees," states: "RESCHEDULING AND CONTINUANCES The trustee should consult with the United States Trustee about the local rules and practices regarding debtor rescheduling requests and continuances. The trustee should not routinely continue S. 341(a) meetings when the debtor appears. If a trustee must continue the meeting, however, the trustee must, if at all possible, announce the continued date to all parties present at the initial meeting, and advise the United States Trustee and, if necessary, the clerk of the bankruptcy court, of the continued date. Any continued or rescheduled meeting should be held before the time for objection to discharge has expired unless the trustee has obtained an extension of time to object to the debtor's discharge. If the debtor does not appear at a continued or rescheduled meeting, the trustee should ensure that action is taken for dismissal, unless dismissal would not be in the best interest of the estate." According to the policy of the Executive Office of the United States Trustee as expressed in its "Handbook for Chapter 7 Trustees," the Trustee has a non-delegable function as the "Presiding Officer" at the debtors" 11 U.S.C. S.341(a) meeting of creditors. The pertinent portions of that handbook states: "PRESIDING OFFICER The trustee, as designee of the United States Trustee, is the presiding officer at the meeting of creditors. The trustee may not delegate the duty to preside at the meetings. However, the trustee may seek prior approval, confirmed in writing, from the United States Trustee for a substitute if the trustee is unable to preside at a scheduled meeting. If the United States Trustee designates another to serve as the presiding officer, the trustee is responsible to ensure that the designated substitute presiding officer is qualified and trained to conduct the meeting. The designated substitute presiding officer must have conducted meetings in the presence of the trustee prior to presiding at meetings without the trustee, unless the substitute is also a panel trustee. 28 U.S.C. S. 586." The Relationship Of The Meeting To Claimed Exemptions When an individual debtor petitions for bankruptcy he is entitled to claim certain property as exempt from the estate. See 11 U.S.C. S 522(b) (allowing debtor to elect to take exemptions provided by state or federal law); id. S 522(l) (requiring debtor to file list of property claimed as exempt); see also Fed. R. Bankr. P. 4003(a). Any creditor and the bankruptcy trustee may file objections to the debtor's list of properties claimed as exempt. See Fed. R. Bankr. P. 4003(b). However, absent special circumstances, these objections must be filed "within 30 days after the conclusion of the meeting of creditors held pursuant to Rule 2003(a)." Id. If no objections are made, then "the property claimed as exempt . . . is exempt." 11 U.S.C. S 522(l). Thus, the failure of the Trustee to conclude the meeting could have the unintended effect of leaving indefinite the time that creditors can object to a claimed exemption. In Taylor v. Freeland & Kronz, 503 U.S. 638 (1992), the debtor claimed a meritless exemption. Had the trustee or creditors objected to the claim within 30 days after the initial creditors meeting, as required under Rule 4003(b), the property could have been retained in the bankruptcy estate. Id. at 642. However, due to their failure to do so within that period, the Supreme Court ruled, prevented them from challenging the validity of the exemption later -"whether or not [the debtor] had a colorable statutory basis for claiming it." Id. at 644. Rule 2003(e) permits adjournment "from time to time" and requires the trustee to announce "the adjourned date and time" if he chooses to exercise this option. The plain language of the statute requires that for a Rule 2003(e) adjournment to be effective, it must be accompanied by an announcement of "the adjourned date and time." See In re Hurdle, 240 B.R. 617, 621-22 (Bankr. C.D. Cal. 1999); In re Levitt, 137 B.R. 881, 883 (Bankr. D. Mass. 1992). No other procedure for adjournment is provided by rule or statute, and no other method of adjournment is permitted under Rule 2003(e). The meeting may be concluded following a single session, or, under Bankruptcy Rule 2003(e), it *may be adjourned from time to time by announcement at the meeting of the adjourned date and time without further written notice.* Bankruptcy Rule 2003(e) has been understood to permit a continuance sine die. See In re Flynn, 200 B.R. 481, 483 (Bankr. D. Mass. 1996) ("The scant authority available agrees that "may" in Rule 2003(e) is permissive and not mandatory."). However, there is no statutory provision or bankruptcy rule "specify[ing] the manner in which the meeting is to be "concluded"" after it has been continued generally. See Moyer v Dutkiewicz (In re Dutkiewicz), 408 B.R. 103, 105 (B.A.P. 6th Cir. 2009) (citing In re Cherry, 341 B.R. 581, 585 (Bankr. S.D. Tex. 2006)) The Policy And Law Behind Concluding The Meeting Of Creditors As the 9th Circuit noted in In re: Smith v. Kennedy, 255 F.3d 472 (9th Cir. 2000): "In Taylor, the Supreme Court emphasized its concern with keeping the bankruptcy process moving by insisting on firm, explicit deadlines. See 503 U.S. at 644. As a matter of policy, this should work no great hardship, even in the conversion of bankruptcy proceedings from Chapter 11 to Chapter 7. The purpose of the creditors meeting is to question the debtor about his debts, and to examine him about his claimed exemptions. Where more information must be gathered, the meeting can be adjourned to a definite time." However, if one is dealing with a serial adjournment of the meeting by the Trustee for reasons that are not anticipated by the code or case law, it is important to bring this to the court*s attention and seek to compel a conclusion of the meeting. The 9th Circuit noted in In Re Smith v. Kennedy, 221 f.3d 1101 (2000) stated this policy of the rule succinctly as follows: "Yet, the permissibility of such adjournments does not mean that they are to be commended or that the bankruptcy court should allow them in all cases. Often, a trustee can easily adjourn the meeting to a time certain, as provided in Rule 2003(e). A case-by-case analysis is appropriate. Trustees cannot keep these meetings open indefinitely without "legitimate grounds for believing that further investigation will prove fruitful." In re Bernard, 40 F.3d at 1031 n. 4. 28 U.S.C. S.586 may commit to UST discretion [to choose] among otherwise available means; but it does not give the UST "discretion" to use any means she fancies in any way she pleases. No part of 28 U.S.C. S. 586 authorizes the UST to act in an otherwise unlawful or abusive manner and excuse herself by pleading "discretion." As the Supreme Court observed in Taylor, "[d]eadlines may lead to unwelcome results, but they prompt parties to act and they produce finality." 503 U.S. at 644. To authorize trustees to adjourn meetings indefinitely, even when it is unlikely that any subsequent meeting will in fact be called, would nullify the thirty-day requirement of Rule 4003(b), rendering the holding in Taylor hollow, and undermining the concerns expressed by the Supreme Court about promptness and finality. The Court in In re: Smith, supra, observed that three lines of approach have developed within this circuit and elsewhere regarding the adjournment by the case Trustee of the 11 U.S.C. S.341(a) meeting of creditors. These have been referred to as the "bright-line" approach, the "case-by-case" approach, and the "debtor's burden" approach. Each is responsive to the demands of Taylor in its own way. The "Debtor's Burden" Approach The "debtor's burden" approach employed by the bankruptcy court in this case arose after Taylor because it had become commonplace for trustees to announce general continuances so they would not run afoul of the thirty-day objection deadline. See In re Flynn, 200 B.R. at 483. Adherents reason that a S. 341 meeting will not terminate until "the trustee so declares or the court so orders" because they oppose the adoption of a strict deadline "where none appears in either the statute or the rules." Id. at 484; see also In re Koss, 319 B.R. at 321. They also reject the uncertainty created under the case-by-case approach because "[a]n objector would never know whether the objection was barred as untimely until the court had investigated the circumstances of the case." Id. Certainty is obtained from either a clear statement of conclusion by the trustee or the issuance of an order to that effect issued upon the request of a debtor. Under this approach, the onus of concluding a meeting rests with the debtor because "the debtor has the greatest interest in concluding the meeting. . . ."" In re Dutkiewicz, 408 B.R. at 108 (citing In re DiGregorio, 187 B.R. 273, 276 (Bankr. N.D. Ill. 1995)). As noted by the Dutkiewicz panel in its recent rejection of the "debtor's burden" approach, it has been spurned by the only two circuit courts to have addressed the issue: In Smith, the Ninth Circuit Court of Appeals rejected the approach as paying insufficient heed to the Supreme Court's interest in firm, explicit deadlines as expressed in Taylor, 503 U.S. at 644, and the trustee's duty to keep the bankruptcy process moving. See In re Smith, 235 F.3d at 477 n.4. The Fifth Circuit rejected the approach as "ignor[ing] the clearly-established policy of the Bankruptcy Code of encouraging promptness in the filing of objections to exemptions, because it would permit a trustee to continue a meeting of creditors indefinitely." In re Peres, 530 F.3d at 378. Id. at 109-10. The 9th Circuit in In Re Smith, supra, rejected the "debtor*s burden" approach for the reasons expressed above and because: "(a) it shifts the burden of concluding the meeting from the convening officer to the debtor; (b) it requires the debtor to seek closure from the court on a motion to compel conclusion for cause - namely, "abuse" at the hands of the trustee, as stated by the bankruptcy court in this case; (c) it allows a trustee to enjoy an unlimited enlargement of the thirty-day objection period without ever seeking one from the court; (d) it fosters the delivery of evasive and confusing notices. Therefore, we have no cause to measure the trustee's conduct under the "debtor's burden" approach." The "Bright-Line" Approach Under the "bright-line" approach, a meeting continued without a follow-up date will be deemed to have been concluded on the date of the initial meeting for the purpose of determining the beginning of the thirty-day objection period. See Smith v. Kennedy (In re Smith), 235 F.3d 472, 476 (9th Cir. 2000); In re Friedlander, 284 B.R. 525, 527 (Bankr. D. Mass. 2002); In re Levitt, 137 B.R. 881, 883 (Bankr. D. Mass. 1992); see also U.S. v. Cushing (In re Cushing), 401 B.R. 528 (B.A.P. 1st Cir. 2009); McGowan v. Ries (In re McGowan), 226 B.R. 13 (B.A.P. 8th Cir. 1998) (discussing the implementation of the "bright-line" approach by local rule). The Ninth Circuit explained the benefits of the "bright-line" approach as follows: "To authorize trustees to adjourn meetings indefinitely, even when it is unlikely that any subsequent meeting will in fact be called, would nullify the thirty-day requirement of [Bankruptcy] Rule 4003(b), rendering the holding in Taylor hollow, and undermining the concerns expressed by the Supreme Court about promptness and finality." In re Smith, 235 F.3d at 476. According to the U.S. Bankruptcy Appellate Panel for the Sixth Circuit, "[c]ourts favoring this approach note that a bright-line rule provides certainty to trustees as to what assets are to be administered, and allows debtors to move on with their fresh start by allowing exemptions to become final within a definite and relatively short time." In re Dutkiewicz, 408 B.R. at 107 (citing In re Friedlander, 284 B.R. at 527; In re Levitt, 137 B.R. at 883). Under the "case-by-case" approach, the facts and circumstances will be examined to determine the conclusion date of the S. 341 meeting. See Petit v. Fessenden, 182 B.R. 59, 63 (D. Me. 1995), aff*d on other grounds, 80 F.3d 29 (1st Cir. 1996). In affirming the bankruptcy court*s rejection of the "bright-line" approach, the district court in Petit stated, "[t]his is not a case such as Levitt, where a trustee adjourns a meeting indefinitely and then does nothing in the case for over a year." Id. In adopting this approach, the Fifth Circuit observed that courts "have considered at least four factors in determining the reasonableness of a trustee's delay in adjourning a meeting of creditors: (1) the length of the delay; (2) the complexity of the estate; (3) the cooperativeness of the debtor; and (4) the existence of any ambiguity regarding whether the trustee continued or concluded the meeting." Peres v. Sherman (In re Peres), 530 F.3d 375, 378 (5th Cir. 2008). In conclusion, it is important to allow ample time to have the meeting of creditors and allow proper adjournment, but, there are considerations why adjournments must not be abused by the Trustee. In those circumstances, it will be proper to move to compel the conclusion of the meeting of creditors.
When you file #bankruptcy - either #Chapter7 or #Chapter13 - you can declare some or all of your property as “exempt.” When your property is exempted no party, neither creditors or the bankruptcy trustee, can try to grab it or make any claim on it. #bankruptcyexemptions #exemptproperty Typically, for example you will declare as exempt your clothes, pots and pans, tables and chairs, plates and glasses and other household goods. Big ticket items like equity in real estate, your motor vehicles, money in retirement plans, jewelry, and cash on hand may also fit within an exemption category - the question is which law applies? As I discuss in this video, the federal #bankruptcycode has an unusual twist in that states can choose to use a federal exemption law, or state legislatures can draft their own exemption statutes. #Georgia falls into the latter category - most Georgia residents who file bankruptcy within the state are required to use the #Georgiaexemptionstatute. There is no choice unless you have recently moved to Georgia within the past 2 years - different rules apply. Residents of other states may have different options - some states allow filers to choose which statute to apply and in some jurisdictions only the federal exemption law applies. This is why it is dangerous to type “bankruptcy exemptions” into Google or other search engines and expect to get an accurate result. Some websites have outdated information, while others do not make it clear that Georgia residents have no choice. The Georgia state legislature changes the exemption statute from time to time - visit http://bit.ly/2A9zOMu for the current version. If you are interested in a comparison, the federal exemption statute (which does not apply in Georgia) is here: https://www.law.cornell.edu/uscode/text/11/522 #atlantabankruptcyattorney #bankruptcyatlanta FREE CASE EVALUATION If you would like me to analyze your finances please contact me at https://bit.ly/Contact-Gins CONTACT ME Jonathan Ginsberg Atlanta Bankruptcy Attorney Website: https://www.glolaw.com/our-practice-areas/personal-bankruptcy/ Facebook: https://www.facebook.com/ginsberglaw/ Telephone: 770-393-4985 https://bit.ly/Contact-Gins **Click Below to SUBSCRIBE for More Videos: http://www.youtube.com/subscription_center?add_user=ginsbergbankruptcy
The short answer – Everything! But it’s going to be ok. Including it in your filing doesn’t mean you can’t keep your stuff.
Rebuilding Your Credit Bankruptcies can stay on your credit report for up to ten years. Even so, you don't have to wait ten years to buy a new home. In fact, filing for bankruptcy helps you start rebuilding your credit immediately. Research shows that debtors can qualify for a home loan on the same terms as non-filers in as little as 18 to 24 months. You Can Re-establish Your Credit With FHA The Federal Housing Administration's requirements for home loan qualification are more flexible than other lenders. You can begin re-building your credit as long as you meet the following requirements: (1) 24 months have passed since your bankruptcy discharge; (2) You have paid or made arrangements to pay any outstanding tax liens; (3) Three years have gone by since any foreclosures or deeds-in-lieu of foreclosure; and (4) You have paid all judgments. Filing for a Home Loan Unfortunately, when you apply for a home loan after bankruptcy, any home loan you get will no doubt be at a higher interest rate than for a person who has not gone through a bankruptcy. Even so, don't let that change your mind. You can do two things: First, make your down payment as large as possible. This will keep your loan small. And second, make sure that your loan does not have a prepayment penalty. In this way, as your credit score improves, you can refinance your home at a lower interest rate.
Bankruptcy & Debt Relief Offered in Ft. Lauderdale & South Florida Crushing personal debt, whether credit cards, loans or medical bills. Struggling to just try and pay something every month. Never enough money. You feel like you have no life and worse, it feels like you can't provide things and vacations and the like for your family. And there's no end in sight. These are the kind of circumstances my typical, potential bankruptcy clients are in when they contact me. Is there a kind of Lottery they could win? Well, yes. There kind of is. What if I could orchestrate a 100% legal, solid, no maybes or negotiating, way that one could in just four months be free of debt, bills and payments. What if my bankruptcy services allowed an individual or couple to again feel like and be productive citizens, able to spend hard earned money on themselves and their dependents. What if I could do that and, along with making a living, my take-away is a truly grateful client, whose only regret usually is they didn't do it sooner. No one wants to file bankruptcy. It doesn't feel good; it doesn't feel moral. Neither does say, a medical operation. I had a hernia procedure last February. I'm glad I did because now i no longer have a hernia. It wasn't a fun day - but the end result far outweighed the continuing discomfort that wasn't going away and was only going to get worse. In offering my bankruptcy services in Ft. Lauderdale and South Florida the saddest cases I see are good people who just struggle and struggle mightily for months or years to try and dig themselves out of a mountain of debt. Some try debt-consolidation agencies. But these companies are not regulated and sometimes promise a lot. If in the end, after they've been paid good money, sometimes a lot of money, they don't deliver, what? Who ya gonna call? The police? Ghostbusters? And one may actually be paying off interest and penalties with these companies or by themselves, money they didn't borrow or use but is now owed because of the fine-print on a long, long credit card contract. Donald Trump says bankruptcy is a way of doing business and I agree with him in the sense that: Why not consider and maybe decide to take advantage of a law "to your benefit", to quote Mr. Trump. My bankruptcy services can be a life-line. With a bankruptcy, there is no negotiating or trying and trying month after month to keep up. And if something happens in a payback arrangement and you can no longer pay - well, good luck. A chapter 7 bankruptcy wipes the slate clean and gives my clients a fresh start. Kind of like winning the Lottery. Really, in the big picture, what's not to like? I offer a confidential, free phone or in-person consultation. If you have too much debt and no foreseeable way out, let's talk. If nothing else you will have the benefit of my advice after 30+ years practicing law. Sincerely, Ft. Lauderdale and South Florida Bankruptcy Attorney Steve Glerum How Great Is It That Your Debt Problems Have Solutions? And That In Most Bankruptcy Filings, The Only Thing You Lose Is Your Debt, Nothing More! As a Broward County bankruptcy attorney, I help people who are struggling with too much debt. I read on the CreditCards.com website that if one has a $5,000 credit card balance and only pays the minimum payment every month, it will take 13 years - THIRTEEN YEARS - to pay it off. And this assumes there are no new charges during the 13 years. I also read that Florida ranks as one of the five highest states in the U.S. populace with credit card burden. It strikes me that obtaining a credit card is much like getting married; easy to do, but oh, so uneasy to undo. Easy credit. Unsolicited offers. No interest for months, even years. But the pain is in the details. Miss a payment, penalties. Miss a payment date, interest jumps up to 21%, if it's not there already. Credit limit lowered or cut off. Finally, card cancelled, but principal, interest, fees and penalties still due and at this point accruing more every day! How many people have called me just aghast and astonished at how their credit card bill ballooned astronomically, overnight. In the course of a every person's lifetime, events occur, some of which are not good and which are costly, sometimes very costly. Divorce. Sickness. A swindle or scam. No one is immune from financial woes. Not Donald Trump, not Walt Disney, not the City of Detroit, not Burt Reynolds. They all filed bankruptcy. And as a Ft. Lauderdale bankruptcy attorney, I'd bet good money each of them would say they were very happy, very relieved that there was a legal way to solve their serious money woes. Recently I had a business meeting with a prominent politician and lobbyist on a government matter. He had been around a long time. I forget how but I learned he had recently filed personal bankruptcy. He had invested a huge sum of money in a venture that just went totally bad. When asked about it by a reporter, I always remember his simple, yet so truthful, complete answer: "When someone sues you for a million dollars and you cannot pay it, you file bankruptcy". In my practice, I regularly counsel people in deep financial difficulty who are struggling with their worried emotions of loss and despair. With my advice, they are able to take a pause and acknowledge those feelings. They are able to settle their minds and make decisions based on clear thinking rather than fear and anger. I get great satisfaction in meeting a potential client for a first consultation, sometimes with a lawsuit or wage garnishment in hand, explaining how the bankruptcy process works to extinguish the lawsuit or garnishment and other debt, and watching a frowning, troubled, concerned person or couple by the end of our consult literally be transformed into feeling easy and calm. They know I can take their financial burdens away in just four months and they will have a fresh start. Money in their pocket and a life again. A great weight off their shoulders. I received a kind thank you note from a nice, older couple that had come in for a consultation a couple weeks ago. They had upwards of $30K in credit card debt but were retired and on a fixed income. The note said they were going to try and work out something with their creditors, but would see me again if it didn't work out. I wrote them back and agreed you can always file the bankruptcy, but it is such a shame to file it six months or a year from now after you have struggled and scrimped to try and pay your creditors, only to throw in the towel and come back to me. That money could have been in their pocket! Now it is gone forever and with no benefit whatsoever to them. I pointed them to a couple blogs on my website about this and I hope they take it to heart. No one, not anyone, wants to file bankruptcy. But sometimes you just have to do what is best for you and your family. If you are struggling and overwhelmed with debt, I can help. I take your personal financial problems personally. Let's talk. Steve Glerum, Ft. Lauderdale Bankruptcy Attorney
Generally, you will not lose your house in a bankruptcy. Your home is protected as an exception when you file bankruptcy. As long as you're current with your mortgage payments and continue to make those payments, you should be able to keep your home.