Many people are struggling with the fact that filing bankruptcy might be their only way out of extreme debt they have accumulated over the past years. There is plenty of information on the Internet about the deposits balance sheets, some of which are true and some may fall into the category of myths and urban legends. There was intimidation tactics put on the web about what happens when a debtor must file bankruptcy. Some of the information is a bit of truth mixed with a lot of misinformation that is probably from the credit industry. The credit industry does not want debtors to know that if they file bankruptcy, especially under Chapter 7, this will erase all unsecured debts. Filing bankruptcy puts power in the hands of the debtor and the creditors away.


Much of the misinformation is found regarding the meeting of creditors or 341 meeting and dealing with the bankruptcy trustee of Quebec. After a person has filed for bankruptcy, it will be required to attend the meeting of creditors approximately 4-6 weeks after the official filing bankruptcy. While this gives an extreme fear most debtors, this is really not so dramatic. In a bankruptcy, if the debtor is honest, he should have no problem getting a discharge. Sometimes, it could cost the debtor to liquidate some non-exempt to give the proceeds to creditors assets. Depending on where the debtor lives, the bankruptcy exemption laws vary. That is why it is important to have a bankruptcy lawyer who works in your interest and protects the most of your assets. This is one of the main functions of the trustee in bankruptcy of Quebec where the debtor under the law Chapter 7 bankruptcy.

When the debtor makes the bankruptcy filing, from beginning to end, it is important for him to be totally honest and work with the bankruptcy attorney, giving it all the necessary information for the bankruptcy petition is completed. At the time of the meeting of creditors, the debtor will be an opportunity to meet with the bankruptcy trustee of Quebec. It is common for people to fear the trustee before the meeting. There is a presumption of many debtors, saying the trustee of Quebec wants to take to your house and take all your possessions and give it to creditors.
However this is far from the truth.

In a Chapter 7 bankruptcy, the trustee is required to notify all creditors of the bankruptcy filing pending. Then, it is responsible for collecting any property not exempt and achieve distribution among creditors. It is also responsible for providing any information about the case of bankruptcy of the debtor. The main thing that the debtor must remember is that the trustee is not against him unless it is dishonest. As the debtor gives truthful information about his income and properties, they should have no problem getting a bankruptcy discharge.

Having a bankruptcy attorney to help you through the process will alleviate a lot of fears and misinformation that is on the internet. When the application is properly prepared by the attorney, the trustee usually requires only about five or six debtor basic questions about the deposit. Overall, the 341 meeting and introduction to the bankruptcy trustee is going well.