Today on PACER I see that the court has assigned a trustee to our case, and we are considered a no-asset case. That means that our personal property is exempt. The federal government as well as most states offer exemptions for personal property. This is the stuff you get to keep in a chapter 7. Chapter 7 is a liquidation type bankruptcy so if you have more assets than are allowed to be exempted these assets get sold to get some money back for the creditors.
Also, our 341 meeting has been scheduled for November 24th. This is when we meet with the trustee, and creditors have the right to attend or file a claim to get some money back. This usually happens for car payments, recreational vehicle loans, etc. They may want you to “reaffirm” a debt. This means if you did reaffirm, you would still be responsible for repayment, even after the bankruptcy. Some banks allow what they call a ride through… meaning you don’t reaffirm but you can still pay on the vehicle. If in the future… you can no longer make payments you can surrender the vehicle to them, and they have no recourse as you included it in your bankruptcy. This is the reason most banks want you to reaffirm… then you are still responsible.
Tags: chapter 7, personal bankruptcy, trustee