Bankruptcy - How Does The Trustee Work?

The collapse of the Investment Banking Firm, Bear Stearn will cause massive lay-offs

. How many is not yet known, but it could well be into the neighborhood of 12,000 or more, currently it appears they have somewhere just over 14,000 employees, but of course, they will no longer be needed, and looks because if their 401Ks may be completely depleted. Many of the Bear Stearns employees, will be laid off or terminated and that means a huge hit to the dismal job figures for the following quarter in the US economy, however the real pain will be to those employees who lose their jobs and will most likely be forced into foreclosure and bankruptcy.

If you're facing a severe financial crisis and would like to file for bankruptcy, then the best option for you is to approach a lawyer who is familiar with the bankruptcy concepts. Though this can be done on your own, it is not recommended for you to do therefore. As filing for bankruptcy is not an easy task, and that it consumes lot of time and energy, one is always advised to approach a bankruptcy lawyer in this regard.

The Chapter 13 bankruptcy or wage earner policy includes the debtor to reimburse a minimum portion of the debts with the recent earnings to in total cure the existing debts.

Bankruptcy facts on what will not be wiped out; here is a list of stuff that filing for bankruptcy will not wipe out: child support, some taxes, student loans, debs which resulted from 'willful harm' such because drunk driving.

The applicant will, however, attend the 341 meeting (so called as it is required by section 341 of the Bankruptcy Code). In this meeting, the person applying for bankruptcy meets with all creditors involved and answers questions pertaining to assets, property, etc.

It is important that people know there are other methods for debt solvency and that bankruptcy is not just an easy exit from debt pay off. You may not be ridding yourself of your creditors that easily, it is up to the bankruptcy court to take all possible measures to make sure the debt are paid back. You'll have to sell out your assets and property in order to confirm payment.

by: Sudarsan Chhetri

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