why would the attorney general be a debtor in a bankruptcy

To do this, the Attorney General will be allowed a claim in the bankruptcy for the full amount of fees and set aside funds paid by customers (past and present) of Debt Relief USA. Because the Attorney General’s claim overlaps the claims of customers, the trustee needs to object to the customers’ claims.

Full Answer

Who is the debtor in bankruptcy court?

The debtor is, of course, one who owes a debt to a creditor. A bankruptcy case is commenced — usually voluntarily, but sometimes involuntarily — because the debtor cannot repay its debts. A debtor is most often an individual, but it can also be a partnership, corporation, or municipality.

What are the duties of a debtor in the bankruptcy process?

During your bankruptcy, you will be required to; make your payments, attend two counselling sessions, report your income and expenses monthly to your trustee, provide necessary tax information. You may also be asked to attend a creditors' meeting or examination, although this is very rare.

What happens to debtors in bankruptcy?

Money from the sale goes toward paying your creditors. The balance of what you owe is eliminated after the bankruptcy is discharged. Chapter 7 bankruptcy can't get you out of certain kinds of debts. You'll still have to pay court-ordered alimony and child support, taxes, and student loans.

Who can be a debtor in Chapter 7?

To qualify for relief under chapter 7 of the Bankruptcy Code, the debtor may be an individual, a partnership, or a corporation or other business entity.

What are the duties of debtor?

Q 3.4 What are the debtor's immediate duties? To obtain relief under the Bankruptcy Code, a debtor must initially do three things, in this order: (1) obtain a pre-petition credit counseling briefing; (2) file a petition that comports with Official Form 1; and (3) pay the filing fee.

What happens when company declares bankruptcy?

Definition: When an organisation is unable to honour its financial obligations or make payment to its creditors, it files for bankruptcy. A petition is filed in the court for the same where all the outstanding debts of the company are measured and paid out if not in full from the company's assets.

What debts Cannot be discharged in bankruptcy?

8 Kinds of Debt You Can't Lose in BankruptcyMost back taxes and customs. ... Child support and alimony. ... Student loans. ... Home mortgage and other property liens. ... Debts from fraud, embezzlement, larceny, or from “willful and reckless acts” ... Your car loan, if you want to keep your car. ... Debt that doesn't belong to you.More items...

What debts are not dischargeable in Chapter 7?

Debts dischargeable in a chapter 13, but not in chapter 7, include debts for willful and malicious injury to property, debts incurred to pay non-dischargeable tax obligations, and debts arising from property settlements in divorce or separation proceedings.

Which of the following debts would be discharged in bankruptcy?

At the end of your case, the bankruptcy court will discharge all qualifying pre-petition debt, such as credit card balances, personal loans, and medical debt. Post-filing debt. The bills that you rack up after submitting your initial bankruptcy paperwork are post-petition debt.

Who can be a debtor?

Notwithstanding any other provision of this section, only a person that resides or has a domicile, a place of business, or property in the United States, or a municipality, may be a debtor under this title.

What is the difference between Chapter 7 11 and 13 bankruptcies?

Chapter 7 bankruptcy doesn't require a repayment plan but does require you to liquidate or sell nonexempt assets to pay back creditors. Chapter 13 bankruptcy eliminates qualified debt through a repayment plan over a three- or five-year period.Jun 2, 2021

7.01: Purpose of Regulations

The purpose of 940 CMR 7.00 is to establish standards, by defining unfair or deceptive acts or practices, for the collection of debts from persons within the Commonwealth of Massachusetts.

7.02: Scope

940 CMR 7.00 apply only to the collection of debts, as defined herein, and no conduct which is not the collection of debts or any part thereof is affected.

7.03:Definitions

Communication or communicating means conveying information directly or indirectly to any person through any medium excluding nonidentifying communications.

7.06: Contact with Persons Other Persons Regarding a Debt

The following shall apply to contact with persons not covered by 940 CMR 7.04 and 7.05:

7.10: Preemptino by Federal Law

In the event any conflict exists between the provisions of 940 CMR 7.00 and the provisions of Federal statutes or regulations relating to the collection of debts, such Federal law shall control but only to the extent that such Federal law mandates actions or procedures prohibited by 940 CMR 7.00.

What is a 341 meeting?

A 341 (a) meeting is presided over by the trustee assigned to the bankruptcy case and is considered a meeting of creditors. This meeting is held approximately 40 days after the new petition is filed.

How long does it take for a credit report to be removed?

The law states that credit-reporting agencies may not report a bankruptcy case on a person's credit report after 10 years from the date the bankruptcy case is filed. Other bad-credit information is removed after seven years .

Is bankruptcy free?

Those considering bankruptcy should be aware of the following: Filing for bankruptcy protection is not free. Please refer to the Filing Fees page.

What happens if you fail to appear in court?

Failure to appear may result in dismissal of the case. If a continuance or change in the hearing date, time, or location is sought, the trustee assigned to the case must be contacted. Such requests are not filed with the court.

How long does it take for a Chapter 13 to be removed from credit report?

The policy of the Associated Credit Bureaus is to remove Chapter 11 and Chapter 13 cases from the credit report after seven years to encourage debtors to file under these chapters. You may contact the Federal Trade Commission's Bureau of Consumer Protection (link is external) in Washington, D.C.

Can secured creditors seize property?

Example: Secured creditors retain some rights which may permit them to seize property, even after a discharge is gran ted. Spousal and child support obligations and most tax debts are not dischargeable. Within 14 days of the filing of a bankruptcy petition, schedules of the debtor's assets and liabilities must be filed.

What is discharge in bankruptcy?

Under the federal bankruptcy statute, a discharge is a release of the debtor from personal liability for certain specified types of debts. In other words, the debtor is no longer required by law to pay any debts that are discharged.

What is the purpose of Chapter 7?

3. The purpose of filing a chapter 7 case is to obtain a discharge of your existing debts.

How long does it take to get a credit counseling briefing?

The briefing must be given within 180 days before the bankruptcy filing. The briefing may be provided individually or in a group, may be conducted by telephone or on the internet, and must be provided by a nonprofit budget and credit counseling agency approved by the United States Trustee. For a list of approved agencies, see the U.S. Trustee's website . Each debtor in a joint case must complete the briefing.

What is Chapter 12?

Chapter 12 is designed to permit family farmers and fishermen to repay their debts over a period of time from future earnings and is similar to chapter 13. The eligibility requirements are restrictive, limiting its use to those whose income arises primarily from a family-owned farm or commercial fishing operation.

What happens if you conceal assets in bankruptcy?

A person who knowingly and fraudulently conceals assets, or makes a false oath or statement under penalty of perjury, either orally or in writing, in connection with a bankruptcy case is subject to a fine, imprisonment, or both. All information supplied by a debtor in connection with a bankruptcy case is subject to examination by the Attorney General acting through the Office of the United States Trustee, the Office of the United States Attorney, and other components and employees of the Department of Justice.

What is a creditor matrix?

Creditor List (f.k.a. creditor matrix) A Creditor List is a listing of the name and address (creditor record) of each creditor in a bankruptcy case. It must be filed or presented electronically.

How many lines are there in a creditor's name?

There must be a blank line between creditor records. Each line may contain no more than 40 characters, including punctuation and spaces. Each record may be up to 6 lines – the Creditor’s name must be on the first line and the City, State and Zip Code on the bottom line.

WHY BANKRUPTCY IS MY PRIMARY FOCUS

Diane L. Drain, bankruptcy attorney, retired law professor, mentor and community spokesperson.

Many times people ask why I decided to concentrate on bankruptcy –

It’s simple – it is the one area of law that allows me to help others in their time of need. As a law professor I told my students that bankruptcy fascinates me because at times it seems to be magic.

Warning: bankruptcy is complicated and must be treated with respect

Many people file their own bankruptcy or hire inexperienced or unscrupulous attorneys. This is the beginning of a nightmare that can last for years. They lose their tax refunds, vehicles, inheritance and other property that was important to them. Normally this can be avoided if a bankruptcy is planned properly and time allows.

The automatic stay also protects creditors from more aggressive creditors

Many times assets are worth far more than the aggressive creditor is owed. If that creditor seizes the valuable asset it results in losses to other creditors who want to work with the debtor.

Chief Judge Daniel Collins, Arizona Bankruptcy Court, presented Diane with a Lifetime Achievement Pro Bono Award

Chief Judge Daniel Collins, of the Arizona Bankruptcy Court, presented Diane with a Lifetime Achievement Pro Bono Award, sponsored by the Arizona Bankruptcy Section, “ (f)or a career of overwhelming and extraordinary pro bono services in establishing the Bankruptcy Court Self Help Center and leadership in the bankruptcy pro bono programs.”

To put icing on this cake, the judges in the Arizona Bankruptcy Court are dedicated to a fair and equitable result for the parties

They are not shy to shame and financially punish a large national lender for abusing an individual borrower. Nor, are the judges willing to award attorney fees to over-reaching attorneys and their clients (whether debtors or creditors). These judges demand practical, efficient and appropriate lawyering on all matters.

WHY IS THERE SUCH A STIGMA ON FILING BANKRUPTCY?

There may be a sigma because it reflects a perceived failure: a failure to protect the family; a failure to build a successful business or a failure to follow the steps of a parent who was not faced with similar challenges. Many assume that the debtor did not properly plan financially and/or they abused the use of credit cards.