What Is Open Bankruptcy?

By Mary Jane Freeman

A bankruptcy case that is currently underway is sometimes referred to as an open bankruptcy. In other words, an open bankruptcy is one that is not yet discharged. How long a bankruptcy case remains open depends on the type of case the debtor filed.

A bankruptcy case that is currently underway is sometimes referred to as an open bankruptcy. In other words, an open bankruptcy is one that is not yet discharged. How long a bankruptcy case remains open depends on the type of case the debtor filed.

Common Bankruptcy Cases

Individual debtors typically file for either chapter 7 or chapter 13 bankruptcy. In a chapter 7 case, the debtor hands over his assets to a bankruptcy trustee who then liquidates those assets to pay creditors. Debtors can often save a portion of their assets from seizure by finding an exemption for them under federal or state law. Debtors who choose to file for chapter 13, keep their assets and pay creditors through a repayment plan lasting from three to five years. Once liquidation in chapter 7, or the chapter 13 repayment plan, ends, any remaining unpaid debts are discharged, effectively ending the debtor's responsibility for them.

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Bankruptcy Open Period

With both chapter 7 and chapter 13, a bankruptcy case is opened the moment a debtor files his bankruptcy petition, and the case remains open until it is discharged by the court. For chapter 7, this happens quickly, usually within 60 to 90 days from the date set for the meeting of creditors, referred to as the 341 meeting. In this brief meeting, the debtor is asked questions about his financial affairs under oath by the trustee, creditors or both. For chapter 13, discharge usually occurs once all required payments are made under the plan, usually after a few years.

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Bankruptcy Laws and Codes for Idaho

References

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Are Bank Records Checked in Bankruptcy?

When you file for bankruptcy, the bankruptcy court will want to get an idea of your overall financial standing and circumstances. To do this, the court will look into your assets and liabilities, current monthly income and average monthly expenditures. To ensure the data it collects about you is accurate, you must provide the court with financial documentation, including bank records.

Laws & Process for Personal Bankruptcy in Nevada

Because bankruptcy is governed by federal law, the process in Nevada is similar to the process used in other states. The only difference you might experience will likely be at the exemption phase of the proceedings. This is when you can protect certain property from being seized and liquidated to pay your creditors. Because Nevada requires you to use state exemptions, the property and amounts you can protect will differ from what's available to debtors in other states.

What Happens After a Trustee Bankruptcy Meeting?

A trustee bankruptcy meeting is a normal part of a Chapter 7 or Chapter 13 bankruptcy process. Some debtors get nervous about attending the meeting, so preparation can help. After the meeting, creditors may have questions or objections, so proceed one step at a time until your bankruptcy is discharged.

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