Pre-bankruptcy planning is part of the process of filing and administering a consumer bankruptcy case. In this phase, we analyze each debtor's situation to protect the client's legal rights and assets. We review the information provided by the client and determine the options available to each client. We explain these options to the client. Sometimes, the best option is to file with the Bankruptcy Court. In some cases, the client decides their best option is to delay filing, or not to file with the Bankruptcy Court. We will answer all client questions and assist them as needed in making their decision.

When the decision is to file a case under the federal bankruptcy law, the client selects the correct chapter under which to file: Chapter 7 or Chapter 13. Both require a brief, formal hearing before a bankruptcy trustee. The proceedings in this hearing are recorded, and become a part of the court's record, but there is no judge at this hearing. This formal hearing is called a "341" hearing, which refers to the section of the Bankruptcy Code relating to the debtor's examination by a trustee.

With a Chapter 13, the debtor will also have an interview with the trustee's staff by telephone or in person, as determined by the trustee. With a Chapter 7, the trustee conducts his only interview with the debtor at the 341 hearing. For both types of bankruptcy filings, at the 341 hearing the debtor's creditors may ask questions of the debtor about the assets and the estate of the debtor. As a general rule, very few creditors choose to participate in the 341 hearing.

Normally, the only time that a debtor may appear before a bankruptcy judge in federal court is under these circumstances:

• the court has a question about the debtor's case
• a creditor requests information about the case or objects to the plan
• when the debtor signs a personal reaffirmation agreement involved a debt in a Chapter 7 filing

Depending on their county of residence, clients will report to offices in Durham or Greensboro, NC:

Residents from the NC Counties of Cumberland, Harnett, Hoke, Lee, Moore, Robeson, and Scotland report to federal offices in Durham, NC for their interview and creditors meeting, and to the federal court when required.

Residents from the NC Counties of Montgomery and Richmond report to federal offices in Greensboro, NC for their interview and creditors meeting, and to the federal court when required.

McCrann Law Firm, PA, located in Aberdeen, NC, represents residents of the NC Counties of Cumberland, Harnett, Hoke, Lee, Montgomery, Moore, Richmond, Robeson, and Scotland in bankruptcy proceedings.  Please contact us for more information.