Montana Bankruptcy Stipulations
Bankruptcy laws changes in 2005 and created higher stipulations for
filing for bankruptcy. The 2005 Bankruptcy Act has made filing for
bankruptcy more complicated and more time consuming. Even if an
individual has filed for bankruptcy in the past, the new act will
include new paperwork and details than prior laws.
Do-it-yourself databases make bankruptcy more self-contained but can
single out minor necessary details. Consulting an attorney is highly
recommended, and consultations are often free. An attorney will be able
to identify which kinds of paperwork are needed according to an
individual's income, monthly expenses, budget, and number of
individuals in his or her household. An attorney will also be able to
identify property assets, including motor vehicles, investments, stock,
boats, homes, savings, and life insurance policies.
An attorney consultation will also be able to decide if an individual
should file for bankruptcy at all. A bankruptcy attorney will know the
national Bankruptcy Code and be able to determine if a specific chapter
is possible or if no bankruptcy is possible. When an attorney is hired,
following a consultation, he or she will then sign an agreement of
retainer for responsibility and rights.
Bankruptcy Petitioning in Montana
When petitioning for bankruptcy an individual will need to prepare all
the necessary documents. These can include tax returns for the past two
years, home appraisal, large purchases in the past two months, credit
reports, and others. If any of the debts are later found to be
incorrect or purposely falsified, a case will be dismissed from the
court. A petition will then be sent to the Montana Bankruptcy Court
that will put an automatic stay on an individual's account and disallow
creditors from taking any further action until a decision has been made.
Financial Management Briefing
After a petition is filed, an individual is required to attend an
educational meeting for financial management. This briefing will
educate individuals on how to manage all personal finances for future
banking and credit. In Montana this class is approximately two hours
and can be done online, in a classroom, or over the phone.
In Chapter Thirteen bankruptcy cases this financial briefing will need
to be taken before the payment plan ends in the five-year period. In
Chapter Seven bankruptcy cases this financial briefing will need to
take place within sixty days of an individual's 341 Meeting.
A 341 Meeting
Those who apply for Chapter Seven bankruptcy are required to attend a
meeting with their trustee. Here under oath the individual will testify
that all the information filed is accurate. The 341 Meeting will take
place between thirty and forty-five days after a Chapter Seven case is
filed. Any creditors are allowed to attend this meeting and question
the individual filing for bankruptcy.
As such a 341 Meeting is often called a Meeting for the Creditors. All
the necessary information in regards to the bankruptcy case will need
to be submitted to the assigned trustee at least seven days prior to
the 341 Meeting and include the past sixty days of expenses and the
last two years of tax returns.