Oak Park Real Estate & Estate Planning Blog

If you are thinking about filing for Chapter 7 bankruptcy in the Oak Park area, you may have heard that creditors have the opportunity to object to your discharge. It is important to know that an objection to your discharge is distinct from a creditor asking questions at the meeting of creditors (which is also known as the 341 hearing). Should you be worried that you will not be able to have a discharge in your consumer bankruptcy case because a creditor will object? We want to say more about the objection to discharge, why it happens, and whether it is something that may apply in your case. Learning More About Discharges in a Consumer Bankruptcy Case To understand what an objection to discharge is and why it can happen, you will need to understand clearly what a bankruptcy discharge is. As the U.S. Courts website explains, a bankruptcy discharge “releases the debtor from personal liability for certain specified types of debts.” To put it another way, the discharge wipes out debt...

When you file for consumer bankruptcy in Oak Park, Illinois or anywhere else in the country, you will probably hear the phrase “meeting of creditors” used to describe one of the necessary steps in your Chapter 7 bankruptcy filing. In fact, whether an individual or a business files for Chapter 7 bankruptcy, the “meeting of creditors” will take place. What does this term mean, and what is involved in a meeting of creditors? Defining the Meeting of Creditors Under the U.S. Bankruptcy Code Under the U.S. Bankruptcy Code , the meeting of creditors falls under § 341, and thus it is often referred to as the “341 meeting of creditors” or the “341 hearing.” The statute specifically states that, “within a reasonable time after the order for relief in a case . . . the United States trustee shall convene and preside at a meeting of creditors.” In other words, once a consumer has filed for Chapter 7 bankruptcy and has submitted all required documentation (such as financial schedu...