Bankruptcy is a very severe matter which includes the inter-link of company, directors and the court. To file for a bankruptcy case you have to have kept the cost of it in mind, including the fees of attorney and if hired then other expenses will be included. The filing only cost $245, while the administration cost is $39 and the $25 for the trustee, which sums up to $309.
Court allows you maximum 4 periodic payments after 120 days of filing the case however, if you don’t pay your dues and fees on time then the bankruptcy case will be dismissed. Even your case can be dismissed if you are not able to pay up the fee or you make less then 15% of poverty level.
When filing for the Bankruptcy petition, the fees should be submitted to the clerk of court.
After filing for the case of Bankruptcy a trustee will be assigned to your case, who will determine that either all of your assets are exempt or nonexempt. Your nonexempt assets will be sold and will pay up all your creditors while all the exempt assets will belong to you.
In any case all the assets are assigned exempt by the trustee, and then the trustee will file a report of ‘no asset’
As for nonexempt assets, creditors will be allowed to file their claim in distribution but after 90 days after the first date is set, while for the government creditor about 120 days are allotted to file the claim.
After filing for bankruptcy case a meeting would be held after 20 to 40 days in which all the creditors are invited to attend while the trustee questions about all the assets and finances.
