What is the procedure for carrying out bankruptcy proceedings?

The procedure for carrying out bankruptcy proceedings in North Carolina is outlined by federal law. It begins with the filing of a petition with the Bankruptcy Court. This petition must include a statement of assets and liabilities, a list of creditors, a statement of current income and expenditures, and a certificate of credit counseling. After the petition is filed, the debtor must complete an approved credit counseling course. The court then appoints a trustee who is responsible for determining which assets are eligible for liquidation and distribution to creditors. The trustee also makes sure that the case is in compliance with the bankruptcy code and that the petition is accurate. A meeting of creditors and the debtor is held. The creditors can ask questions of the debtor and challenge any information included in the petition. After the meeting, the debtor must take two other courses in personal financial management. Once these steps are complete, the court will issue a discharge order that eliminates the debtor’s obligation to pay any debt that is included in the discharge. The debt is legally cleared and the debtor will no longer owe any money to the creditors listed in the discharge. The final step is for the trustee to distribute the assets of the estate to the creditors. This is done in accordance with the Bankruptcy Code and the court’s order. Once all the assets have been distributed, the Bankruptcy Court closes the case and the debtor is free from any remaining debts.

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What is the procedure for carrying out bankruptcy proceedings?

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