Bankruptcy Motions – Learn About the Standard Set of Motions a Bankruptcy Case Goes Through
Bankruptcy goes thorough a regular set of bankruptcy motions, 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 disagreement. However, the course 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.
- Motion#1: 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 lawyer representing them. This way, the first motion is to place a request to the federal government to either reorganize or eliminate the debts that the debtor in question owes to different creditors.
- Motion#2: The second motion includes the arrangement 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.
- Motion#3: In the final motion, the debtor and the trustee are supposed to complete all necessary 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 reorganize the repayment plan or accept the bankruptcy. In a normal state of affair, the motion is accepted and the judge issues the discharge papers for bankruptcy to the debtor.
- Motion to Dismiss Bankruptcy: Bankruptcy motions sometimes may also include a possible bankruptcy dismissal motion. Creditors file such motion when they suspect a fraud. Here, it is important for you to keep in mind that even if the case is dismissed because of any reason, it will still reflect on your credit report that you filed for bankruptcy. So, your credit will still be hurt badly. But if you are found guilty of fraud, you may also be persecuted for the same.
The best way to avoid dismissal bankruptcy motions is to practice truthfulness. File your petition only if it is a genuine case.
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