Information for Chapter 7 Bankruptcy Clients

Here you will find information regarding:

Bankruptcy Filing and Creditors Notified:

When will my bankruptcy be filed with the Court?

Your bankruptcy will most likely be filed either the day you sign the bankruptcy petition or the next day unless there is a mutually agreeable reason to hold your bankruptcy filing.

When will my creditors be notified of my bankruptcy filing?

Creditors will be notified by the United States Bankruptcy Court by mail of your bankruptcy filing within 5 days of the date you filed. They will be provided your case number, the date your bankruptcy was filed, your attorney’s address and phone number, the Trustee’s address and phone number as well as the bankruptcy court’s information. This is why it is important to include the correct address for your creditors when you are filling out your bankruptcy workbook our office provided when you signed the contract.

One of the benefits of filing bankruptcy is that it stops creditor harassment. Should you receive a call or inquiry from a creditor, let them know you have filed bankruptcy, give them your case number, tell them you filed in the Western District of North Carolina (if you filed with out Charlotte office) or the Middle District of North Carolina (if you filed with our Greensboro office), let them know the name of youir Duncan law attorney and they are to contact our office if they have any further questions. You can also direct your creditors to our website for additional information specifically for your creditors.

What should I do if a creditor continues to contact me?

If a creditor continues to call you AFTER you have provided them your case information, please give them the information again BUT take the person’s name and the date and time they called. If a creditor continues to call, and you document these calls thoroughly, our office may be able to file for sanction against the creditor.

In the rare circumstance that a creditor continues to call, obtain the name of the person that calls and the date and time they called. Contact our office and someone will also contact the creditor.

You may receive statements, bills or invoices from your creditors the first month after your bankruptcy is filed. This is not unusual since they must update their system to reflect your bankruptcy. If you continue to receive statements, bills or invoices from your creditors, please contact them and remind them you have filed bankruptcy and give them my telephone number to call for any information. Be sure to document the name of the person you spoke to and the date and time you spoke with them.

Again, it is extremely rare, but if a creditor continues to contact you after your bankruptcy filing, there is legal action we may take against that creditor. However, we must be able to document when and how the creditor was provided your bankruptcy information. As a result, be sure to keep documentation of the dates, times and person(s) you spoke with for that creditor. Without this information, we will not be able to take legal action against the creditor.

Financial Management Course Information:

When do I need to take the Financial Management course?

As you know, you must take a financial management course and file the certification with the bankruptcy court to receive a discharge in your bankruptcy. We recommend you take the financial management course as soon as you receive your case number but before your creditors meeting. If you are married, each person must take the course separately, and you and your spouse will receive two different control numbers. Most of our clients take the course online at Hummingbird Credit Counseling and Education, Inc. This is important. If you have any questions regarding when to take the financial management course, please contact our office. If you have questions regarding the actual course on the Hummingbird Credit Counseling website, please contact Hummingbird at the phone number listed on their website.

What should I do after completing the Financial Management course?

Prior to your creditors meeting, bring the control number(s) or affidavit(s) to our office along with a money order or certified check made payable to Duncan Law, PLLC. The fee is $8 if single and $16 if married. Your signature on the affidavit may be witnessed by one of the notary publics at our office. You should contact our office one week after you have provided us the control number(s) or affidavit(s) to be sure the certification has been successfully filed with the Court. It is your responsibility to make sure the financial management certification has been filed with the Court. If you have taken the course but simply failed to have your certification filed with the Court prior to your expected discharge date, the Court will close your case and you will not receive a discharge of your debts.

What if I forget to take the financial management course or forget to have it filed with the bankruptcy court before my case is closed?

If the bankruptcy court were to close your case without a discharge because you failed to take the financial management course, you will be required to file a motion with the bankruptcy court to reopen your case. The court’s current cost to reopen the case is $260 for a Chapter 7 bankruptcy. There will also be substantial additional attorney fees to file the motion and obtain the order from the bankruptcy court. Once the case is reopened, you are required to take the financial management course and bring the control number or affidavit along with the fee to our office. Our office does not want you to incur any additional cost or inconvenience from not taking and filing the financial management certification. That is why it is extremely important that you complete and file the financial management certification in a timely manner.

Creditors’ Meeting and the Trustee Information:

When is my creditors’ meeting?

Your creditors’ meeting occurs approximately 30 days after your bankruptcy is filed. You will receive a notice in the mail within seven (7) days of the date your bankruptcy is filed with the court regarding the date and time of your creditors meeting. If you do not receive a notice, please contact our office.

Where do I go for my creditors or 341 meeting, what time do I need to be there, where do I park, etc.?

The meeting location and date and time depend on where you live:

Charlotte Office Clients:

Charlotte Area

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Where: If you live in Mecklenburg, Union, Anson, Cabarrus, Stanly or Gaston County, your creditors meeting will be held in Charlotte. The address is 402 West Trade Street, Charlotte, NC.  Again, this is WEST TRADE, across the street from the Charles Jonas Federal Courthouse. It is not in the federal court house. You should find this office BEFORE the day of the creditors meeting.

When: The meeting is usually held at 11:00 a.m. on a Wednesday morning. However, you will receive a letter from our office instructing you on the exact time to be there, usually no later than 10:30 a.m. Terry will want to talk with you prior to the creditors meeting. When you see him in the court waive to him to get his attention. Twice a month, Terry has court scheduled prior to your creditors meeting, and these hearings run behind schedule from time to time. Should that occur, do not panic. If the Trustee calls your name, let him know that Terry is still in court. The Trustee will understand the situation and hold open your case until Terry arrives.

Parking: You may park on the street with metered parking or in one of the parking lots around the area. If you park on the street, we suggest you put in enough change for 2 hours, approximately $2. If the meter expires, you will receive a $25 parking ticket. The parking lots cost between $4 and $9 for all day parking. Be sure and bring plenty of one dollar bills to pay at the parking lots, because many do not give change.

Shelby Area:

Where: If you live in Cleveland County or Lincoln County, your creditors meeting will be held in Shelby at the Cleveland County Courthouse. The address is 100 Justice Place; Shelby, NC.

When: You should arrive at least an hour earlier than your scheduled meeting, since the many times the security lines are extremely long. These meeting are usually on Friday morning at 9:00 a.m. However, consult the letter you received to be sure.

Parking: You should be able to find parking around the courthouse.

Triad Offices Clients:

Greensboro Creditor’s Meeting

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Where: First Floor Creditors Meeting Room, 101 South Edgeworth Street, Greensboro, NC

When: You should arrive at least an hour earlier than your scheduled meeting, since the many times the security lines are extremely long. These meeting are usually on Monday morning at 9:00 a.m. However, consult the letter you received to be sure.

Parking:

• No Parking Available At Site
• Street-level public parking lot at corner of South Eugene and Washington Streets (2 blocks from building)
• Public parking garages (all 4-6 blocks from building)
  • 109 E. Market Street
  • 211 S. Greene Street
  • 220 N. Greene Street
  • 215 N. Church Street

Directions:

• Interstate #40/#85 to Elm-Eugene exit, north into Greensboro business district, left onto Washington Street, right onto Edgeworth Street;building is on SE corner of Edgeworth and Market Streets
• Interstate #40 to Freeman-Mill exit, north into Greensboro (becomes Edgeworth Street in the business district); building is on SE corner of Edgeworth and Market Streets

Winston-Salem Creditor’s Meeting

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Where: First Floor Creditors Meeting Room, 226 South Liberty Street, Winston-Salem, NC

When: Chapter 7 Creditors’ Meetings in Winston-Salem, NC are typically on Friday mornings at 9:00 AM.

Parking:

• Limited Free Parking Available At Site
• Public parking garage at “Triad Park” [4 blocks from building]

Directions:

• Traveling west on Interstate “Business #40” to Main Street exit, turn right onto Main Street, turn left onto 1st Street, turn left onto Liberty Street, turn right at light (Cemetery Street), street dead-ends at “Bankruptcy Court Building”
• Traveling east on Interstate “Business #40” to Salem College/Old Salem/Downtown exit (5D), turn right onto Liberty Street, turn right at light (Cemetery Street), street dead-ends at “Bankruptcy Court Building”

Durham Creditor’s Meeting

Where: Venable Center, Dibrell Building – Suite 280, 302 East Pettigrew Street, Durham, NC

Parking:

• There is very limited parking available at the Venable Center.
• There are approximately 25 free, 1-hour parking spaces available on E. Pettigrew St. between S. Roxboro St. and Corcoran St.
• There is a public parking deck close by. To reach the parking deck from Venable Center:
  • Head Northwest on E. Pettigrew St.
  • Travel through 2 stoplights, then turn RIGHT on Corcoran St.
  • Make an immediate RIGHT on Ramseur St./Downtown Loop.
  • The parking deck will be on your LEFT immediately after crossing S. Mangum St. (which is the very next stoplight). The entrance to the parking deck is on Ramseur St.

What should I bring to my creditors meeting?

Unless specific instructions were given to you, you will need:

1. your photo identification,
2. social security card and
3. documentation that your 401k/retirement plan is ERISA qualified.

What else should I know about my creditors meeting?

Find Terry Duncan, Damon Duncan, or Melissa Duncan: Please look for your Duncan Law attorney when you arrive, simply come up to them and check-in. They will usually be looking for several people and may overlook you in the crowd. If your attorney is not there, do not panic. He or she may be running a few minutes late from a prior court proceeding.

Children: We do not recommend bringing children with you to your meeting. The meetings are usually boring. If children misbehave or become too restless, you may be asked to leave by the Trustee.

Be On Time: It is your responsibility to appear at the creditors meeting on time. Our office will not call and remind you of the meeting, since you will have already received two letters, one from our office and one from the court. Be sure you know the location of the creditors meeting. Don’t get lost and be late!

Must Attend: There are NO excuses for missing your creditors meeting unless you are hospitalized or it is your death! If you miss the creditors meeting, the Trustee has the right to dismiss your case.

Who is the Trustee?

The Trustee represents your creditors’ interests and is appointed by the bankruptcy court to review your bankruptcy schedules. We will have discussed possible questions regarding your case the day we met and you signed your bankruptcy schedules filed with the court. However, below are some typical questions the Trustee may ask you.

What are the types of questions the Trustee will ask at the creditors meeting?

We will have discussed these at your bankruptcy signing appointment, but here is a list of possible questions.

• Did you review your bankruptcy schedules before signing your bankruptcy paperwork and was that information accurate?
• Do you make any domestic support obligation (child support or alimony) payments?
• Are you expecting any type of inheritance?
• Do you need to make any changes for events that have occurred since you filed your bankruptcy?
  • If there are changes, you should contact our office in advance of your creditors meeting so we can make the appropriate changes.
• How did you determine the value of your house?
• How did you determine the value of your car?
• Do you have documentation that your 401/retirement plan is ERISA qualified?
  • As we discussed, this can be obtained from your employer or online if the administrator of your retirement plan has a website. You should request this information after your bankruptcy signing appointment in my office, since it may take a week or so to obtain the information. Basically, ERISA qualified plans have been reviewed by the Internal Revenue Service and have been determined to meet the requirements that would allow your plan to be fully protected in bankruptcy. Be sure and bring this information with you to the creditors meeting.
• Do you have support for the 401/retirement plan balance listed on your bankruptcy?
  • You should have used your most recent statement plus any additional amounts withheld since the statement date.
• Have you read the Statement of Information?
  • This is a document the security guard will probably give you when you enter the courtroom. This document tells you about your rights in bankruptcy. If you do not receive a copy, please let Terry, Damon or Melissa know before you appear before the Trustee.

If you arrive early, which we recommend, sit in on some of the earlier creditor meetings and see the types of questions being asked by the Trustee. You should anticipate similar questions. Obviously, speak with Terry, Damon or Melissa prior to your creditors meeting if you have any questions.

What happens at the creditors meeting?

You will be sworn-in by a court official, usually the Trustee, at the beginning of the creditors meeting. The Trustee or your creditor may ask you questions regarding your bankruptcy schedules. The actual time you are in front of the Trustee is relatively short. Do not be concerned if there are no questions for you…that is good news.

Will all my creditors be at the creditors meeting?

It is actually rare that a creditor appears at the meeting. If a creditor does appear, it is usually to ensure they continue to receive domestic support (child support, alimony) or because they believe they were defrauded by you. If you see a creditor of yours in the courtroom be sure and tell your attorney!

What if the Trustee request additional information?

If the Trustee requests copies of documents such as tax appraisals, retirement plans, bank statements, etc. at the creditors meeting, be sure to provide this to the Trustee within seven (7) calendar days or within the timeframe required by the Trustee. We recommend you send these documents certified mail, return receipt requested. If the Trustee does not receive these documents within the timeframe requested, he may have you appear in front of the judge to answer why you did not follow a court order. If this occurs, the judge will probably have you pay the Trustee for his time for preparing for and appearing in court. As always, we do not want you to incur costs unnecessarily. Also send a copy of any information you provided to the Trustee to Duncan Law as well.

What if the Trustee request changes in my bankruptcy?

If the Trustee requests that we make amendments to your bankruptcy, do not become concerned. This occurs from time to time.

Reaffirmation Agreement and Staying Current on House and Car Payments

Do I need to sign a reaffirmation agreement if I want to keep my house after filing bankruptcy?

First, you must be current and stay current on your payments if you want to keep your home after filing bankruptcy. Even if you are one month behind, the mortgage company may file legal documents with the bankruptcy court asking for permission to foreclose on your home. This is called a Motion for Relief from Automatic Stay.

If you are making payments on a house you want to keep, you may sign a reaffirmation agreement; however, you are not required to sign a reaffirmation agreement to keep the house. There are benefits and drawbacks of signing a reaffirmation agreement.

If you sign a reaffirmation agreement on your home, you have obligated yourself to make payments on the house in the future. The mortgage company will continue to report your payments to the credit bureaus after filing your bankruptcy. If you make your payments to the mortgage company on time each month, you will receive the benefits on your credit report. However, if you sign the reaffirmation agreement and are unable to make payments on the home in the future, your credit will suffer from the negative reports and you may be held responsible for the mortgage debts if the house is foreclosed on in the future.

If you do not sign a reaffirmation agreement on your home, your payments will not be reported to the credit bureaus and it will show the debt on your house was discharged in bankruptcy, but you must keep making your house payments. As a result, your credit scores will not benefit from timely payments on the house. It may also cause some confusion when you try to refinance your house; however, this is usually easily overcome by requesting your payment history that will show you have made timely payments. If you are unable to make payments on your home in the future, you may not be held responsible for the debts on the house, since the debts were discharged in bankruptcy.

What if I do not receive a bill or statement from my mortgage company?

It is possible that the mortgage company will stop sending you a bill or statement while you are in bankruptcy. You may contact them and specifically request that they send it to you. According to Local Rule 4001-1(e)1 of the Western District of North Carolina, they are required to provide you this information. They may require both of us to sign a release allowing them to send you the bill or statement. You MUST make your mortgage payment(s) each month if you want to keep your home. If you do not receive a bill or statement, simply add your account number on your payment and send it to the mortgage company by the due date. Indicating you did not receive a bill or statement is not a valid excuse for not making your payments. Be sure to keep accurate records that you have made the payments.

What if I get behind on my mortgage payments while in bankruptcy?

If you get behind on your payments while you are in bankruptcy, even one (1) month, the mortgage company may file a Motion for Relief from Automatic Stay. This is a legal document asking the bankruptcy court for permission to start foreclosure on your home. If you are behind on your payments as the mortgage company suggest, the bankruptcy court will almost always give the mortgage company permission to start the foreclosure. This is also expensive for you, since the mortgage company will charge you for their attorney’s time to file the Motion for Relief from Automatic Stay and expect you to reimburse the mortgage company for this cost. We do not want you to incur any additional costs, so do not get behind on your payments.

Do I need to sign a reaffirmation agreement if I want to keep my car or truck after filing bankruptcy?

If you want to keep your car or truck you must be current and stay current on your payments. Should you get behind on payments, even one (1) month, the finance company has the right to file legal paperwork with the bankruptcy court asking for permission to repossess your car.

If you are making payments on a car or truck and you want to keep these assets, you are required by Section 521(a)(6) of the U.S. Bankruptcy Code to sign a reaffirmation agreement. A reaffirmation agreement is a legal document stating that you will continue to make payments on the asset after your bankruptcy is complete. If you want to keep a car or truck and fail to sign and file a reaffirmation agreement with the court before your bankruptcy is discharged, the creditor has the right to repossess the vehicle.

If you sign a reaffirmation agreement and get behind on payments after your bankruptcy is complete, the finance company still has the right to repossess your property and hold you responsible for the debt. It may also appear as a repossession on your credit report.

If you have not received a reaffirmation agreement from our office by the date of your creditors meeting, please contact the creditor and ask that they forward a reaffirmation agreement to our office. The reaffirmation agreement will be sent to you for signing. It is your responsibility to make sure a reaffirmation agreement is filed with the court if you want to keep the car or truck. You should contact our office at least two weeks prior to the expected date of discharge to be sure the reaffirmation agreement has been filed by your creditor. If the reaffirmation agreement is not filed with the court prior to your discharge, the creditor has the right to repossess the car.

What happens if I change my mind about keeping the car after signing the reaffirmation agreement?

If you sign the reaffirmation agreement and then change your mind, you may rescind the reaffirmation agreement before the bankruptcy court enters a discharge order or before the expiration of the 60-day period that begins on the date your reaffirmation agreement is filed with the court, whichever occurs later. To rescind a signed reaffirmation agreement, you must notify your Duncan Law attorney, the creditor and the court. You will also need to change your Statement of Intention through our office and we will file it with the Court. If you do not cancel or rescind the reaffirmation agreement under the correct court procedure, you will be responsible for paying the debt. As a result, do not wait until a few days before the deadline to rescind the agreement.

What if I do not receive a bill or statement from the finance company for the car/truck I want to keep?

It is possible the finance company will not sent you a bill while you are in bankruptcy; however, that is no excuse for not making your payment. You should pay your car/truck payment when it is due. Be sure to add the account number to your remittance or payment (check, money order, Western Union, etc.)

What happens if I get behind on my car/truck payment while in bankruptcy?

If you get behind on your payments while you are in bankruptcy, the finance company may file a Motion for Relief from Automatic Stay. This is a legal document asking the bankruptcy court for permission to repossess your vehicle. If you are behind on your payments as the finance company implies, the bankruptcy court will almost always give them permission to repossess your vehicle. Even if you bring your car/truck payments current, you will be charged the finance company attorney’s fee. This is usually included in the amount needed to bring the loan current.

Do I need to sign a reaffirmation agreement if I DO NOT want to keep a car or truck?

If you own a car or truck, you should not sign a reaffirmation agreement if you do not want to keep (you’re surrendering) the car or truck. If you are surrendering a car, you may contact the finance company to make arrangements to transfer the vehicle to them. Be sure to obtain a business card or other documentation from the person who takes possession of the vehicle.

Do I need to sign a reaffirmation agreement for furniture, computers, appliances, etc.?

If you have owned these items for several years and there is little or no value in the assets, the creditor may not incur the expense of repossessing the items. However, you should be prepared to surrender these items to the creditor should they pursue repossession and you have not signed a reaffirmation agreement.