When a person files for bankruptcy in the state of New York, they often create a plan. This outlines how they will pay back their debt over time. In order to begin paying this plan, there are certain requirements that must be met and steps to be taken. No matter which type of bankruptcy is filed, the individual will have to attend a 341 meeting. This is also referred to as the meeting of creditors. During this time, it is important to speak with an attorney to understand what will take place during this meeting and how to prepare.
While debtors often fear the 341 meeting, it should be seen as a relief. With this meeting brings the individual the opportunity for a fresh start to repay their debts and plan for their financial future. Those who usually attend this meeting are the debtor, their bankruptcy attorney, a trustee, and some of the creditors or lenders to whom the individual owes money.
During this meeting, debtors are expected to explain their financial situation. This can include why they have not been able to pay their debts. Other questions they may face can be whether or not they have previously filed for bankruptcy or if they have obligations to support payments. This also requires the debtor to outline their plan to reorganize their finances and pay back their debts over time. In order for the meeting to end, the plan must be approved by the Bankruptcy Court. Within 45 days of this meeting, a judge will determine if the plan is approved. Once the plan is filed with the court, the debtor should begin making payments within 30 days.
The Automatic Stay
Once the meeting is over and the bankruptcy paperwork is officially filed, the Bankruptcy Court will enforce the Automatic Stay. This is a system that bars creditors and lenders from engaging in collection activities towards the debtor. Collection activities can include calls or letters, bank restraints, repossessions, foreclosures, or any lawsuits. If a creditor violates the automatic stay, they may face consequences for doing so. This provides the debtor with a sense of relief, as they do not have to worry about harassment while they begin to pay their debts.
Contact our Firm
If you or someone you know believes they are in a situation in which they may have to file for bankruptcy, contact the Law Offices of Allen A. Kolber, Esq. today.
If you require the services of an experienced Business Law or Bankruptcy attorney, contact the Law Offices of Allen A. Kolber, Esq. today to schedule a consultation and discuss your options.