While the decision to declare chapter 7 bankruptcy can be a difficult one, most people never think much about what happens from the time of the filing until the bankruptcy is final. The entire bankruptcy process can take several months to be compete, depending on the case load in your federal district, but during this time several things can occur. Knowing what lies ahead with your case can help you to be better prepared, and several important events in your case will revolve around your bankruptcy trustee. Read on to learn more about this important figure and one of the events that could prompt your trustee's attention.
In many bankruptcy cases, it will be necessary for the filer to relinquish some of their property. This may be a car, a boat or other items. In most instances, your home is safe from seizure, but that really depends on how much money you owe on it, how much your home is worth, how much your homestead exemption is, and the value of your bankruptcy (how much debt you have).
After you have filed, you may be contacted shortly thereafter by your bankruptcy trustee to schedule a home inspection. Your bankruptcy attorney can help clue you in to what property you have that could be at risk of seizure, but this visit can still come as a surprise and be a source of anxiety.
You will be notified well in advance of the appointed day and time, so make some plans to be home during this visit. You should be somewhat comforted by the knowledge that no property will be taken on the day of the inspection. If any property is to be seized, you will be notified later on. For example, if your pick-up truck is to be forfeited to help pay off some of your creditors, you will have advance notice before the wrecker shows up.
During the inspection the trustee, or their representative, will make notes and take photographs of your home, the contents and any outside property. If you have very little property and you are a renter rather than a home owner, you may never need to have a home inspection at all. However, just because you are subject to a home inspection should never be construed as being at all suspicious or out of the ordinary. If you have been completely honest and forthcoming about your assets, you have nothing to fear from this inspection.
To learn more about your chapter 7 bankruptcy home inspection, speak to your bankruptcy attorney.