From an individual debtor’s standpoint, one of the primary goals of filing a bankruptcy case is to obtain relief from burdensome debt. Relief is attained through the bankruptcy discharge, the purpose of which is to provide a "fresh start" to the honest debtor.

Bankruptcy can:

• Eliminate and reduce debt

• Stop Foreclosure and Repossession

• Stop Wage Garnishment

• Protect Assets

• Stop civil lawsuits

• Immediately Stop Creditors' Collection Efforts and Telephone Calls

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005
On April 20, 2005, President Bush signed into law the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 ("BAPCPA"). BAPCPA made substantial changes to the Bankruptcy Code, and most of the changes apply only to cases filed on or after October 17, 2005.  One important change that arose from BAPCPA was the establishment of the "means test" for debtors filing a Chapter 7 case.  The means test is discussed in more detail elsewhere on this website.

Types of Bankruptcy
There are six basic types of bankruptcy cases provided for under the Bankruptcy Code.  The cases are traditionally given the names of the chapters that describe them.  Typically a consumer files under either Chapter 7 or Chapter 13, both of which are described in more detail in the section entitled "types of bankruptcy."   An attorney from our office will personally discuss each type of bankruptcy with you.

Credit Counseling
Every individual filing either a chapter 7 or chapter 13 bankruptcy within 180 days of filing must receive credit counseling from an approved credit counseling agency.  A partial list of approved agencies can be found in the resource section of our website.  A debtor must also complete a course in financial management from an approved credit counseling agency prior to receiving a discharge. 

The Automatic Stay
Immediately upon filing a bankruptcy petition an automatic stay goes into effect.  The stay prohibits a creditor from taking any further collection action and from even contacting the debtor.  The stay even affects civil actions and prevents an attorney for a creditor from contacting a debtor.  The time in which the stay is in effect varies and in some circumstances a creditor can request the bankruptcy court for relief from the stay and to proceed with a lawsuit, foreclosure, or other collection action.  A creditor or collection agency that knowingly violates the stay may be found in contempt of court and be subject to a monetary sanction.

The 341 Meeting
Usually, the only formal proceeding at which a debtor must appear is the meeting of creditors, which is usually held at the offices of the U.S. trustee. This meeting is informally called a “341 meeting” because section 341 of the Bankruptcy Code requires that the debtor attend this meeting so that the Trustee and creditors can question the debtor about debts and property.  Generally, a debtor’s involvement with the bankruptcy judge is usually very limited, and a Chapter 7 debtor usually will only appear in court if an objection is raised in the case.   A Chapter 13 debtor may only have to appear before the bankruptcy judge at a plan confirmation hearing.  At Buckey & Schurter, all of our clients are represented by an attorney at the 341 hearing.