The Standard Set Of Motions A Bankruptcy Case Goes Through

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Every bankruptcy case goes thorough a standard set of bankruptcy motions. These motions are unusually based on the decisions made by the judge or the trustee. Motions in some cases are so smooth that the case is completed without any challenge. However, the path may get very difficult for the debtor if someone files a complaint against him/her under federal fraud laws or files a motion to dismiss the bankruptcy filing itself. In any case, you will be well aware of what different motions look like and what exactly they mean for you.

First Motion

In the United States of America, any bankruptcy filing must be consumer-initiated regardless of the fact whether the debtor is availing the services of a lawyer or not. This is the first of all the bankruptcy motions. As per this motion, the petition is filed either by the debtor themselves or by the attorney representing them. This way, the first motion is to place a request to the federal government to either restructure or eliminate the debts that the debtor in question owes to various creditors.

Second Motion

The second motion includes the scheduling of a meeting of creditors or a 341 meeting after the petition is received. The meeting provides the creditors an opportunity to have their say. They have the right to object to the bankruptcy request. However, if the petition has been filed under chapter 7, creditors seldom appear in such meetings. The only situation when they may come up with an objection when they have some solid proof of bankruptcy frauds with them. In that case, they will ask the trustee to make bankruptcy motions to dismiss the petition on the basis of the possible frauds. In generals, creditors usually show up in such meetings when the debtor has requested to restructure the loans.

The Final Motion

In the final motion, the debtor and the trustee are supposed to complete all essential paperwork. Once the trustee is satisfied that all formalities have been completed thoroughly, a final motion is made by them to the judge to either restructure the repayment plan or accept the bankruptcy. In normal circumstances, the motion is accepted and the judge issues the discharge papers for bankruptcy to the debtor.

by: Thomas Jhon

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