What Are The Major FAQs That The Creditors Have In Bankruptcy Cases?

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What Are The Major FAQs That The Creditors Have In Bankruptcy Cases?

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Who is the bankruptcy trustee?

Each named creditor receives notice of the first meeting of creditors in a Chapter 7 case, along with the trustee’s name. Additionally, in some districts, that information is available over the phone and in the case file of the bankruptcy court.

The debtor often assumes the trustee’s duties in Chapter 11 cases that don’t have one. The United States Trustee (UST) oversees bankruptcy cases rather than managing them on a daily basis. Unlike the case trustee, USTs work for the Department of Justice. Until the job is done, the assets are sold, the claims are looked into, the fees are decided, and the creditors are paid, to the extent that there are assets, in line with the priority of the claims, the trustee continues to manage the case’s assets. However, keep in mind that a large percentage of Chapter 7 petitions by people are made without any assets that may be utilised to pay creditors. Distributions are only available to creditors who filed claims with the court in Chapter 7 and Chapter 13 cases.

The Employee claims for wages received within 180 days of the bankruptcy filing are given priority for payment (or the debtor stopping operations, whichever comes first).

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Distribution on priority claims, however, could not take place until the issue was remedied. The claim form is normally printed on the back of the notice of the first meeting of creditors. The court clerk’s paperwork and online claim forms are both accessible.


How can someone get my W-2 from a bankrupt business?

Get in touch with the case’s trustee right away. This obligation is one that the trustee must fulfil.

The creation of the W-2s may be necessary, and the trustee may have control over the legal power to supervise the debtor’s books and records. Instead of waiting until the upcoming tax season, do this now. By that time, the trustee may have closed his file and disposed of the records.

Is payment of a claim required at the 341 meeting?

No, the initial creditors’ meeting is a process for gathering information. For your claim to be approved or paid, you do not have to be present.

The acceptance and payment of your claim do not depend on your presence at the 341 meeting. However, claims must be presented by the court-imposed date, which is frequently specified in the notice of the 341 hearing, in order for the trustee to pay them. You will have a limited amount of time to question the debtor about the company’s assets and obligations while under oath if you choose to attend the 341 hearing.