Chapter 7 Meeting of Creditors -- What to Expect at Fresno's Bankruptcy Court

After filing a Chapter 7 bankruptcy in the Fresno area, you will be required to attend the "Meeting of Creditors" at the Robert E. Coyle Fresno Federal Court House.  The meeting is also referred to as the "341 Meeting." 

The Fresno Federal Court House is located at 2500 Tulare Street, Fresno, CA 93721.  It's on the corner of "O" Street and Tulare.  There are several courthouses in downtown Fresno.  It's the one with the tall evergreen trees.  I have had a lot of clients go to the wrong one.  Here are a couple of pictures of the court house that you want to go into:

The "Meeting of Creditors" is the only real event of importance you are required to attend.  (Most of the other meetings take place at my office.)   You do need to be prepared for the hearing.  Please bring your driver license, social security card, change for parking, and a pen to write with. 

Parking is available on the side streets, but the parking spots have 2 hour metering.  There are also some nearby parking garages.  Free parking is available, but you will need to walk a few blocks after parking.  If you are in the mood to walk, there is free parking two hour parking on the streets adjacent to the railroad tracks and Amtrak Station.   (Approximately two blocks East of the court house.) 

After parking, you will walk up to the courthouse door.  The picture to the left is the entrance to the courthouse.  As you walk into the courthouse, you will immediately go through security.  After security you will be in an attractive hallway. 
Below, is a picture of the hallway: 

The Meeting of Creditors takes place in two rooms off the first floor hallway.  The two rooms are halfway down the hallway.  Here is a picture of the sign just outside the two rooms:

Once you arrive, go inside the trustee room and look for a questionnaire on a table.  It should be in the back of the room.  Take the questionnaire and answer the questions outside in the hallway.  This is a good place for you and I to meet before the meeting:


Our 341 meeting is set in 1 hour groups.  Along with you, there will be nine other folks that have their meeting of creditors at the same time.  The good news is that the typical case lasts only 5 minutes long.  99% of the time no creditor shows up.  It will likely be me, you and the trustee.  The purpose of the meeting is to allow your bankruptcy chapter 7 panel trustee to ask you questions about the documents you filed and any follow up questions she may have on specific assets of yours.  I will be there the entire time.  Here are three questions that are asked at each meeting of creditors:  

1. Did you list all of your assets and all of your debts on you petition?
2. Did you review, understand and sign your petition?
3. Have you sold any assets in the last three years? 

While it is never fun to give sworn testimony in a court proceeding, the Meeting of Creditors is nothing to stress over.  I know that this is easier said than done.  After it is all over, as we are walking out of the courthouse, you will likely be thinking, "No Sweat!" 

Attorney Ken Jorgensen is located in Clovis, California.  He handles personal, property and business disputes, including bankruptcy and eviction cases.  You can find out more about Ken on Facebook, or at his websites, www.fresnolawgroup.com and www.fresnobankruptcylawgroup.com.  He can be reached at jorgensenlaw@gmail.com or by telephone at 1-559-324-1882.

What to Expect at the First Meeting with a Chapter 7 Bankruptcy Attorney

Here is what to expect when you first meet a chapter 7 bankruptcy attorney:     

I, like most Fresno attorneys, do not charge for the first consultation.  If you contacted an attorney that wants to charge right away, try someone else first.  Remember, your chief goal is to determine whether you should file bankruptcy.  It's also important to feel comfortable with the attorney.  Trust your instincts.  There are a lot of attorneys that file Chapter 7 bankruptcies in Central California. 

The first meeting can last anywhere from 30 minutes to 90 minutes.  The attorney's goal should be to explain the bankruptcy process and determine whether bankruptcy is the best solution.  

This first meeting will broadly the bankruptcy process.  You should have all your questions answered.  The attorney should have a broad understanding your personal finances.  These topics include your assets, income, and expenses.  At the end, you should feel more comfortable deciding whether you want to file bankruptcy.  You should be quoted a price to file bankruptcy.  I typically charge between $1200 and $1500 per bankruptcy.  The Eastern District of California Bankruptcy Court charges $335.  There are two online bankruptcy classes that cost as low as $35. 

It is helpful to bring copies of the following documents: 

1.  Driver License

2.  Social Security Card 

3.  Last two years of filed tax returns

 

4. Last six months income stubs.  (Pay stubs, unemployment, disability, etc.)  

5.  Lawsuits, garnishments, foreclosures, abstract of judgments or tax liens.

6. Retirement statements (Your most recent 401k, PERS, STRS, and/or pension statements

7. Title certificates to all cars, trailers, Boats, etc.  

8. Most recent invoice statements to vehicles and real property

9. Life insurance policies.

10. Credit report from www.annualcreditreport.com (the free report)

11. If you are required to pay child support or alimony, than provide Marriage Agreement and court order.

12.  License of professionals, e.g. sales agent, truck driver, attorney.   

California On Track To Pass New Debt Purchasing Laws

In the last couple of weeks, I wrote about how certain debt buyers, like Midland Funding LLC, buy debt from creditors in bulk and then prey on debtors for money even if they cannot prove their case at trial.

It looks like California is going to enact laws beginning January 1, 2014 to help protect consumers from these unsavory practices by bulk debt purchasers.

Titled the Fair Debt Buying Practices Act, California SB 233 passed in the Assembly and Senate on an unanimous vote in favor. The measure now goes to California Governor Jerry Brown for his signature.  Its provisions would take place on January 1, 2014.  I see no reason why Governor Brown will not sign the bill. 

Here are some of the highlights of the bill:

1. Debt buyers must have in their possession proof that they are the sole owner of the debt, the account balance at charge off, date of default or last payment, name and address of both the creditor and debtor, and a complete chain of title on the account if bought and sold multiple times.
2. If the debt is legally too old to file a lawsuit, but still can be reported to the credit bureaus, the debt buyer must use the following language in its first written communication:

“The law limits how long you can be sued on a debt. Because of the age of your debt, we will not sue you for it. If you do not pay the debt, [insert name of debt buyer] may [continue to] report it to the credit reporting agencies as unpaid for as long as the law permits this reporting.”

3.  If the debt is older than both the statute of limitations and credit bureau reporting, the    following must be included in the letter:

“The law limits how long you can be sued on a debt. Because of the age of your debt, we will not sue you for it, and we will not report it to any credit reporting agency.”

This should be a helpful law.  I estimate 85% of the people receiving a letter with one of these admonitions should be smart enough to tell the creditor to go away.  What do you think?

Attorney Ken Jorgensen is located in Clovis, California.  He handles personal, property and business disputes, including bankruptcy and eviction cases.  You can find out more about Ken on Facebook, or at his websites, www.fresnolawgroup.com and www.fresnobankruptcylawgroup.com.  He can be reached at jorgensenlaw@gmail.com or by telephone at 1-559-324-1882.

Photo credit: http://www.flickr.com/photos/headingtonmedia/

Are SBA Loans Dischargeable in a Chapter 7 Bankruptcy?

Every now and then I am asked whether debt from an SBA Loan can be discharged in a Chapter 7 bankruptcy.  The short answer is "yes".

I am asked this question because it is linked to a government program.  However, there is nothing special about a SBA loan compared to any other private business loan when it comes to bankruptcy.  It is treated like every other loan.  Like all other loans, however, a SBA loan would not be dischargeable if the loan was obtained by fraudulent means.       

For the most part, business owners typically do not need to worry about whether their SBA loan will be discharged in bankruptcy.  However, there can be a foreclosure issue.  Many SBA loans are secured by a deed of trust on real property.  Because of the deed of trust, the lender will have the right to foreclose on the property.  In conclusion, even though you personally are no longer responsible for the debt, your lender can still sell your property through a foreclosure sale in a Chapter 7 bankruptcy. 

Attorney Ken Jorgensen is located in Clovis, California.  He handles personal, property and business disputes, including bankruptcy and eviction cases.  You can find out more about Ken on Facebook, or at his websites, www.fresnolawgroup.com and www.fresnobankruptcylawgroup.com.  He can be reached at jorgensenlaw@gmail.com or by telephone at 1-559-324-1882.