The United States Bankruptcy Code allows for different types of bankruptcy under certain circumstances. Only some of these are available to individuals, with the two most common types of bankruptcies being Chapter 7 and Chapter 13 bankruptcies. Even though the steps taken to discharge debts are different, both Chapter 7 and Chapter 13 bankruptcies must take a few common steps. One of those steps is the meeting of creditors, also known as the “341 meeting of creditors” or the “341 hearing” after the portion of bankruptcy code it is written into. No matter the type of bankruptcy you end up filing for, understanding the steps of the bankruptcy process are important.

What Is a 341 Meeting of Creditors?

In most cases, you will not have to appear in court before a judge to complete your bankruptcy. One of the most important steps of the bankruptcy process is the 341 meeting of creditors, which typically takes place in a courthouse, with a trustee presiding over the hearing, rather than a judge. The purpose of the meeting of creditors is essentially for the bankruptcy trustee to verify your identity, ensure your forms are filled out correctly and that all of the information given is accurate.

What Will Happen During the Meeting?

At your meeting of creditors, your trustee will likely also have scheduled other cases to be heard at the same time. Once your name is called, your trustee will ask you to verify your identity before beginning. Once you have done that, the trustee will then have the opportunity to ask any questions pertaining to your finances, such as whether or not you are expecting any sources of income in the future, such as inheritance. Your trustee may also ask you to verify information about your job, income, assets, and other information they wish to clarify. Your creditors, or the entities you owe money to, are notified of the hearing and have the opportunity to appear at the hearing and ask questions relating to your financial situation, though this is uncommon.

You could get 100% of your health insurance paid from April through September 2021 if you lost your employer-based insurance during the pandemic. Last month’s American Rescue Plan Act included the $1,400 stimulus payments, expanded unemployment insurance, and many other benefits. One other lesser-known benefit pays your health insurance if you’ve lost your job and your health insurance with it. Today’s blog post talks about this new free health insurance.

 What is This Health Insurance Benefit?

This benefit could potentially pay your and your family’s entire health insurance premiums for April through September of 2021.  The White House, American Rescue Plan.

That could save you lots of money. You’d save by not having to pay the monthly insurance premiums. You could especially save by having coverage for any health care costs that would arise during this time.

If you intend on filing for bankruptcy, then you likely already have a decent idea of what a bankruptcy is. For many people, filing for a bankruptcy is a way to get a fresh financial start and change their lives immensely, yet many people do not actually understand what the process entails. The bankruptcy process consists of various steps that must be taken in order to accurately complete the process. Though the majority of the process consists of paperwork and other administrative tasks, it can be daunting to some, which is why hiring a skilled bankruptcy attorney is recommended.

• Attend Pre-Bankruptcy Credit Counseling: Before you even begin your case, you are required to complete pre-bankruptcy credit counseling. This is typically one meeting that lasts for an hour or two with a credit counselor who is approved by the U.S. Department of Justice. This course must be completed within six months prior to your bankruptcy filing and usually involves discussing your financial situation and your options for bankruptcy.
• Prepare Necessary Paperwork: Next, you will need to begin to collect all of the documents necessary to fill out the required paperwork and file your bankruptcy case with the court. This is typically one of the most confusing, yet essential parts of the bankruptcy process and one of the parts that your attorney will assist you with. Your attorney will ensure that the paperwork is properly filled out with information such as your income, your assets, your debts and your spending habits, among other things.
• File the Petition with the Court: The next step is to actually file your bankruptcy case with the court. Your attorney will also assist you with ensuring your bankruptcy petition is filed correctly with the court to avoid any denials or delays. This is also the step during which you will have to pay filing fees.
• Complete a Debtor Education Course: In all bankruptcy cases, you will also need to complete a second credit counseling course. The second course is a debtor education course, which is designed to help you make smarter financial decisions as you move forward. This course must also be completed from an approved credit counseling agency and the certificate of completion must be filed with the court before your debts can be discharged.
• Receive a Notice of Discharge: The final step in the bankruptcy process is to actually have your debts discharged. Once you have completed all of the requirements and you have filed all of the necessary paperwork, your bankruptcy trustee will look over your case and make a decision as to whether or not your bankruptcy is granted. Once your bankruptcy has been discharged, you will receive a notice of discharge in the mail, officially clearing you of all of your included debts.

Our San Antonio, TX Bankruptcy Lawyer is Here for You

Filing for a bankruptcy can be an overwhelming and time consuming process, no matter your situation. If you are considering filing for bankruptcy, you should speak to a skilled New Braunfels, TX bankruptcy attorney before you make your move. At the Law Offices of Chance M. McGhee, we can help you through the process and provide you with assistance wherever it is needed. To begin discussing your case with our bankruptcy attorney, schedule your free consultation today by calling our office at 210-342-3400.

What do you do (and not do) if you already owe 2018 or 2019 income taxes, or taxes from earlier years, and haven’t sent in the latest tax returns? What if you owe 2020 income taxes even though the IRS is not taxing $10,200 of unemployment income that year? That was our topic last week. The first $10,200 of unemployment is not being taxed because of last month’s American Rescue Plan Act. This week’s topic covers your options if you owe income taxes for prior tax years. Even if you don’t owe for 2020, or owe less, that may not help much if you were already behind.

If You HAVEN’T Submitted Recent Tax Returns

For tens of millions of Americans, the last year has been the most financially disruptive in their lifetimes. Many lives were turned upside down around a year ago. If that includes you it’s understandable that you had trouble preparing and sending in your 2019 income tax returns.

The IRS recognized this to some extent by extending its tax return deadline from April 15 to July 15, 2020. So did virtually all states with income taxes (which include 41 out of the 50 states). But if your financial challenges went beyond last July, you may still not have made that deadline. Indeed you may not have submitted them even now if you owe and cannot pay.  That may be especially true if you were already a year or more behind on taxes at that point.

Do you owe 2020 income taxes even though the IRS is now not taxing the first $10,200 of unemployment income? What to do and not to do.

Last week we discussed the extent to which unemployment income is not taxed because of the American Rescue Plan Act. Generally, you don’t pay federal (and possibly state) income tax on the first $10,200 in benefits you received in 2020. Section 9042(a) of the Act. (See our last blog post about qualifying for this, and other details.)

Let’s get into two significant practical problems you may still have in spite of this substantial benefit: