All bankruptcy has the same essential players like debtor, trustee, creditors, and once in a while a representative from the department of justice. Let us see what role they perform here.
Debtor is the most important player because he wants a discharge after filing the bankruptcy.
The chapter 7 trustee is the principal representative of the estate.
What are the duties of a debtor?
All debtors have certain defined duties best summarized by “honesty” and “cooperation”, set forth in the Bankruptcy Code.
The debtors must file file a list of creditors including their addresses, a schedule of assets and liabilities, a schedule of current income and current expenditures, and a statement of financial affairs. BAPCPA added additional filing required of all debtors including a statement of monthly income and changes in the means income test. Also, a statement of expenditures needed to be filed. These items must be either filed with the petition or filed within 15 days after filing.
Also, debtor needs to cooperate with the trustee, if any.
A debtor also needs to surrender all the property of the estate to the trustee, if any. Also, a debtor needs to appear in a 341 meeting and answer all the questions under oath.
A creditor is defined in the Bankruptcy Code as any entity that has a “claim: against the debtor that arose before the entry of the order for relief. The Bankruptcy defines “Claim” as a right to payment, whether or nto such right is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed, legal, equitable, secured, or unsecured or a right to an equitable remedy. A secured creditor is any creditor holding a valid and prefered lien on collateral constituting property of the estate.