Who are the parties in interest in bankruptcy case?

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.
The Debtor
Debtor is the most important player because he wants a discharge after filing the bankruptcy.
Trustee
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.

The Creditor:
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.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s