Q: What is the legal definition of bankruptcy?
Bankruptcy is defined as a legal process that is petitioned by a debtor and that allows a debtor to eliminate or repay the debts that he/she owes to his/her creditors.  Bankruptcy also involves the process of liquidation.  Any property that is considered non-exempt will be liquidated by the bankruptcy court.

Q: What is liquidation?
Liquidation is a legal process where non-exempt property is sold for profit.  The profit is then given to creditors to repay debts that a person owes.  Non-exempt property may include, but is not limited to things like houses, vehicles or land.

Q: Do I need to do anything before I file for bankruptcy?
Yes, there are two things you will need to do. First, you should hire a qualified bankruptcy lawyer who can represent you throughout your bankruptcy proceedings.  Second, you need to complete credit counseling 180 days before you file your bankruptcy petition and required paperwork.

Q: What is the difference between the U.S. Trustee and a bankruptcy trustee?
The U.S. Trustee Office is a part of the Department of Justice.  The Department of Justice oversees all bankruptcy cases in the country.  A bankruptcy trustee is an appointed official who oversees and administers individual bankruptcy cases.

Q: Will my creditors attend my meeting with the bankruptcy trustee?
Most creditors do not attend the meeting that is set up for people and their trustees.  The only time creditors show up to these meetings is if they wish to dispute exempt property.

Q: How long does it take for debts to be discharged?
After you have attended your meeting with your appointed trustee and reviewed your paperwork, it will take approximately 60 days for your debts to be discharged.  If your creditors file disputes, it may take longer.