Browse terms
The bankruptcy process
Debtor
A person, business or government entity concerning which a bankruptcy case has been filed. 1
Talk to a lawyerHow it works
In the Bankruptcy Code's own words, a debtor is a person or municipality concerning which a case has been commenced. Owing money does not make someone a debtor in this sense. Filing a case does. 1
Filing brings protection and duties at once. The automatic stay stops most collection actions against the debtor. The debtor must file a list of creditors, schedules of assets and liabilities, a schedule of current income and expenditures and a statement of financial affairs. 1 2
The debtor also attends the 341 meeting and answers questions under oath about the paperwork, property, debts, income and expenses. 3
Spouses can file one joint petition. Individuals can file without an attorney, though the federal courts strongly recommend getting advice from a qualified attorney. 1 4
Common questions
Who can be a debtor in Chapter 7?
Individuals, partnerships, corporations and other business entities can file under Chapter 7. 2
Can an employer punish me for having been a debtor?
Employers, public or private, may not discriminate against a person only because that person was a bankruptcy debtor or did not pay a debt that was discharged. 5
Sources
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