Vermont Bankruptcy Records

Are Bankruptcy Records Public Information in Vermont?

Per Vermont Public Records Act, bankruptcy records are accessible and open to the public. Nevertheless, specific records with sensitive information are exempted from public disclosure. Using the Multi-court Voice Case Information System, citizens can access bankruptcy records at no charge by dialing (866) 222-8029. Likewise, bankruptcy files are obtainable through PACER (Public Access to Court Electronic Records).

Record seekers looking for an alternative to government sources may obtain bankruptcy records from third-party websites. These non-governmental websites often come with tools that help simplify the search for single or multiple records. However, record availability on third-party sites tends to vary because they’re independent of government sources. To obtain bankruptcy case information using third-party sites, record seekers may need to provide:

• A complete name of the debtor involved in the record
• A bankruptcy case number

How to Get Vermont Bankruptcy Records

The different means to access bankruptcy records in Vermont are listed below:

1. Public Access to Court Electronic Records (PACER): This platform allows members of the public to view federal court records, including bankruptcy files. However, requesters must register online to have a PACER account. The PACER Case Locator provides detailed information on where cases are filed if the user does not know. Bankruptcy records are made available on PACER, including weekends and holidays. The PACER Service Center is reachable at (800) 676-6856 or by email at pacer@psc.uscourts.gov.
2. The National Archives and Records Administrator (NARA): NARA is in charge of Vermont's closed bankruptcy records. To obtain files of closed bankruptcy cases, interested parties must contact the court to request the location of a specific file of interest. Requestors must also complete the Bankruptcy Cases Order Form and submit it via mail.
3. The Voice Case Information System (VCIS): VCIS is another option to access bankruptcy records. Interested individuals will have to call (866) 222-8029 and provide details of the file such as the parties involved, case number, tax ID, or social security number.

How to File Bankruptcy in Vermont

Bankruptcy in Vermont refers to laws that allow an individual or business with more debt than they can repay to satisfy their debts. The debts may be satisfied either by liquidation or by drafting a repayment plan. Where the debt is to be paid by the liquidation of the debtor’s property, a trustee is appointed by the court to gather and sell the property. The debtor is allowed to keep the exempt items. After the debtor’s property is sold to repay the creditors to the extent that the properties can cover, the rest of the debt is discharged. However, a debtor may also file for bankruptcy without being liquidated by submitting a reorganization plan. A reorganization plan allows the debtor to repay missed debts and alter the deadlines and potentially the amounts of the debts. The debtor would be required to submit a repayment plan on how the debtors would be repaid over a few years.

Vermont Bankruptcy Codes

Bankruptcy in Vermont is governed by the United States Bankruptcy Code and the Federal Rules of Bankruptcy Procedure. Also, the bankruptcy cases are determined by federal courts. The District of Vermont Bankruptcy Courts has exclusive jurisdiction over bankruptcy cases in Vermont. The Court may grant several kinds of bankruptcy filings, including Chapter 7 filings, Chapter 11 filings, and Chapter 13 filings. Chapter 7 bankruptcy filings usually require liquidation of the debtor’s assets to pay the creditors to the extent that the assets can cover the debts. Chapter 11 bankruptcy filings involve the reorganization of businesses. Chapter 13 bankruptcy filings are only available to individuals and married couples and involve a repayment plan to pay the debts over a period of years.

The individual or business should be eligible to successfully file for bankruptcy. The courts attempt to ensure that individuals and businesses do not take advantage of the bankruptcy provisions to escape liability. The purpose of bankruptcy is to give honest individuals who are unable to repay their debts a fresh start. Therefore, it is not for individuals and businesses that can afford to pay their debts but are attempting to reduce their debts or avoid the debts completely by filing for bankruptcy. In considering the debtor’s eligibility status, the court would consider the debtor’s income, assets, expenses, debts, and ability to pay.

A debtor can file for bankruptcy in Vermont at the following court locations.

Burlington
Federal Building
11 Elmwood Ave, Rm 200
Burlington, VT 05401

Rutland
US Bankruptcy Court
District of Vermont
151 West Street
Rutland, VT 05701

In Vermont, the United States Bankruptcy Court District of Vermont has jurisdiction over bankruptcy filings and the records generated from the cases. These files document bankruptcy filings, the chapter of the bankruptcy file, the case’s status, and other information about the petitioner and the creditor.

Obtaining Records

In Vermont, the bankruptcy court maintains bankruptcy records through the Case Management and Electronic Case File Database (CM/EMF). The CM/EMF permits interested parties to review bankruptcy case information. To utilize this service, users must have a unique PACER (Public Access to Court Electronic Records) account. Members of the public can also use the case locator portal to streamline the search for information since they can carry out searches according to the specific court or national index. On PACER, citizens can file for bankruptcy electronically. However, before filing, interested persons must either register to file electronically with the court or apply for attorney admissions.

The United States Bankruptcy Court District of Vermont has a toll-free line where residents can look up bankruptcy case information. Requesters will have to enter a case number, party name, a social security number, or tax ID, and the automated voice system will read the records directly from the court’s database without the need to visit the court physically.

Certain bankruptcy records may be closed and archived. Accessing information in this category requires contacting the court to ask where these records are held. Usually, archived and closed records are in the custody of the National Archives and Records Administration. Interested persons can only access these files by filing the NARA Bankruptcy case Order Form and mailing it to the northeast region Federal Records Center of NARA.

Bankruptcy case information and records may be retrieved on third-party service websites. This is possible because certain law firms, attorneys, and credit reporting agencies utilize these channels to obtain information regarding a bankruptcy case. It is advisable to seek proper legal advice before taking action on information gotten from a third-party site.

What Do Vermont Bankruptcy Records Contain?

A bankruptcy file in Vermont contains the details of the bankruptcy petition, the court proceeding, and the case disposal. Basic information in a bankruptcy record include:

• A list of all the assets and liabilities of the company or individual
• Taxable income
• A list of creditors and the debt to be paid to each creditor
• Details of all partnership contracts and leases
• Employees final paycheck and salaries left unpaid.

Where to Conduct a Free Bankruptcy Case Search in Vermont

All bankruptcy cases in the United States of America are refined via the United State bankruptcy court, which is part of the federal court system. And bankruptcy case search can be conducted for free in Vermont using the methods mentioned below

• Phone Access to Court Records: The voice case information system is a telephone information system owned by all bankruptcy courts. And it enables searchers to get basic bankruptcy case information for free via a touchtone phone, dialing the number (866) 222-8029 and saying the name of the court. This service is made available twenty-four (24) hours a day.
• Court Opinions: PACER provides free Court opinions for bankruptcy case searchers with an active account. Many bankruptcy courts, appellate, and district courts provide access to a no-fee in a text searchable format via a partnership with the U.S. Government Publishing Office (GPO), consistent with the E-Government Act.
• There are unique situations where PACER is free enabling individuals or a group such as academic researchers, pro bono attorneys, destitute, and non-profit organizations to perform free bankruptcy case searches.

How Do I Find Out if My Bankruptcy Case is Closed in Vermont?

Interested parties can determine if a bankruptcy case is closed through CM/EMF (Case Management and Electronic Case File). Parties can also call the toll-free number ((866) 222-8029) to know the current status of a bankruptcy petition. To retrieve closed bankruptcy records, requestors can inquire at the National Archives and Records Administrator (NARA) by completing the Court Records Order form. However, the requestor must contact the bankruptcy court first to ask about the file location.

Generally, bankruptcy cases are not final and are closed when all the requirements are fulfilled. A discharge only seeks to eliminate all personal liabilities and debt, while closure shows that the case is final. When a bankruptcy case is closed, following the judicial proceedings, a mail is sent to either the hired attorney or the petitioner to notify them of the case closure.

Can a Bankruptcy Be Expunged in Vermont?

Bankruptcy records are considered public records and cannot be expunged in Vermont. Furthermore, the state does not have any legislative framework for the expungement of bankruptcy files. However, bankruptcy can stay on a bankrupt’s credit report for seven years for Chapter 13 filing and ten years for Chapter 7 bankruptcy filing.

What are Vermont Bankruptcy Records?

Vermont bankruptcy records are documents that provide information on the personal and financial details submitted by debtors while filing for bankruptcy in Vermont. The information provided includes the debtor’s income, employment, debts, and assets. Pursuant to 11 U.S.C. § 107, bankruptcy records are public in Vermont. Any individual may access the records as public records by phone, in person, or online. Interested persons can make requests by phone by placing a call to (866) 222-8029. In-person requests can be made by visiting the bankruptcy court that heard the case. Viewing the records attracts no charges. However, making copies of the records attract charges. Online requests can be made through the Public Access to Court Electronic Records (PACER) website. Users can view 150 pages of bankruptcy records for free annually. However, viewing up to 150 pages, there is a 10 cent per page fee.

What is the Downside of Filing for Bankruptcy in Vermont?

A downside of filing for bankruptcy in Vermont is that the debtor may lose access to credit cards. Generally, bankruptcy may make it more difficult to obtain loans and mortgages. A Chapter 7 bankruptcy filing by a debtor can remain on the debtor’s credit report for up to ten tears. A Chapter 13 bankruptcy filing will remain on the debtor’s credit report for up to seven years. The credit report is available to financial institutions. Therefore, these financial institutions have access to the records of the bankruptcy if the debtor subsequently applies for a loan and may be influenced by this. Other downsides to filing for bankruptcy in Vermont include:

• A bankruptcy filing may lower the debtor’s credit score
• The debtor may lose some of their assets that are not included in the exemption list
• Bankruptcy may not discharge all debts
• Filing for bankruptcy may lead to a denial of federal, state, or local tax refunds

However, the downsides of bankruptcy should not prevent a debtor from considering the option. A bankruptcy filing is a proper step to take in some instances. The purpose of the law is to allow honest debtors to obtain a fresh financial start. Therefore, it should be taken advantage of where it is suitable for the debtor’s situation and the advantages outweigh the disadvantages. Some benefits of filing for bankruptcy include:

• A bankruptcy filing can allow a debtor to discharge their debts or reschedule payment and potentially reduce the amount that should be paid
• A bankruptcy filing leads to an automatic stay order by the court that prevents creditors from attempting to carrying out collection action, including foreclosure and repossession
• The debtor can retain assets in the exemption list that may have been lost without filing for bankruptcy
• Filing for bankruptcy can help a debtor improve their credit score in the long run as their debts become discharged or repaid

What is Chapter 11 Bankruptcy in Vermont?

A Chapter 11 bankruptcy in Vermont is a kind of bankruptcy that allows a debtor to reorganize their business operations and come up with a repayment plan to pay their debts over a period of three to five years. The debtor shall be a “debtor-in-possession”, having the powers and duties of a trustee. The debtor would continue business operations as a trustee-in-possession. Under a Chapter 11 bankruptcy filing, the debtor is able to continue the business. The debtor may also obtain new loans with the court’s permission. The debtor shall also file a repayment plan with the court. The repayment plan contains details on how the creditors would be paid, including the monthly payments to be made to each, the total amount of money to be paid, and how long the debts would be paid. The creditors may vote on the repayment plan before it is accepted by the court. As a debtor-in-possession, the debtor shall render accounts to the creditors, make reports, and respond to claims.

A Chapter 11 bankruptcy petition can be made either by the debtor or the creditors. A petition made by the debtor is a voluntary petition filed pursuant to 11 U.S.C. § 301. A voluntary petition is filed with Form B 101 of the Official Forms prescribed by the Judicial Conference of the United States. A petition made by the creditors is an involuntary petition filed pursuant to 11 U.S.C. § 303. Creditors filing an involuntary petition should comply with some conditions, such as being at least three creditors acting jointly. The court would require the debtor to file the following.

• A record of assets and liabilities of the debtor
• A record of the debtor’s current expenditures and income
• A record of contracts the debtor is a party to that have not been performed and leases that have not expired
• The debtor’s financial statement

A married couple may jointly file for a Chapter 11 bankruptcy in Vermont. This is in line with 11 U.S.C. § 302(a). A Chapter 11 bankruptcy filing can be made by either a business or an individual. If the debtor is an individual or a couple, they are to additionally file the following with the court.

• A certificate showing that the debtor has gone through credit counseling within six months of filing for bankruptcy. Any draft repayment plan developed during the credit counseling should also be filed with the court.
• A record of the debtor’s income and expenses and any projected increase in either income or expenses.
• Evidence of payment received from an employer within 60 days of filing for bankruptcy, if it exists.
• Any interest the debtor has in a state or federal qualified education or tuition account.

The court charges a $1,167 case filing fee and a $571 miscellaneous administrative fee for a Chapter 11 bankruptcy filing. The debtor should usually pay the fees while filing. However, the court may allow the debtor to pay in up to four installments, with the last installment not to be paid later than 120 days from the date of filing. The court may dismiss the case if the debtor fails to pay.

Who Files for a Chapter 11 Bankruptcy in Vermont?

A debtor or up to three creditors jointly acting may file for a Chapter 11 bankruptcy in Vermont. Bankruptcy can be filed for individuals, married couples, or businesses. The debtor is to file a reorganization plan after filing for bankruptcy. The time period within which the plan should be created is 120 days, except for small business debtors. The court may also choose to increase the time period within which the debtor may file the reorganization plan. However, it should not exceed 18 months in accordance with 11 U.S.C. § 112 (d). If the debtor fails to file the plan within the assigned period of time, the creditors may file a plan.

Why File for Chapter 11 Bankruptcy in Vermont?

A Chapter 11 bankruptcy in Vermont allows the debtor to develop a repayment plan to pay debts. The repayment plan may increase the due date for debts and potentially reduce the amount to be paid. It can help a business that is likely to become profitable in the future avoid being liquidated. Also, creditors shall be unable to enforce payment outside the repayment plan.

What is Chapter 7 Bankruptcy in Vermont?

A Chapter 7 bankruptcy in Vermont is a kind of bankruptcy that liquidates a debtor’s nonexempt property to pay off debts. The court appoints a case trustee who gathers the debtor’s assets, sells them, and repays the creditors. A majority of the debts are discharged after this process. The case trustee organizes a meeting of the creditors. At the meeting, the case trustee shall explain the consequences of the bankruptcy filing to the debtor. The case trustee shall also place the debtor under oath and ask questions about the debtor’s finances. The creditors may also ask questions. The case trustee reports the observations made at the meeting of creditors to the court.

While filing for a Chapter 7 bankruptcy in Vermont, the debtor would be required to file the following.

• A record of the debtor’s assets and liabilities
• A record of the debtor’s unperformed contracts and unexpired leases
• The debtor’s financial statement
• A record of the debtor’s income and expenditure

Debtors with majorly consumer debts would be required to additionally file the following.

• A certificate showing that the debtor went through credit counseling within six months of filing for bankruptcy. The debtor should also file any repayment plan developed during credit counseling.
• The debtor’s monthly income and expenses and any expected increase in either.
• Evidence of payment received from an employer within 60 days of filing for bankruptcy.

Do I Qualify for a Chapter 7 Bankruptcy in Vermont?

A Chapter 7 bankruptcy in Vermont is available to individuals, married couples, partnerships, corporations, and other business entities. A debtor with an income above the state median is usually subjected to a means test. The means test considers the debtor's income, expenses, assets, liabilities, and ability to repay the debts. This is to ensure that the debtor is not taking advantage of a Chapter 7 bankruptcy to avoid financial obligations. The debtor may apply for a Chapter 7 bankruptcy if they satisfy the means test regardless of the amount of debt. A debtor filing a Chapter 7 bankruptcy should have gone through credit counseling within six months of filing for bankruptcy. The debtor shall also be unable to file for bankruptcy if they had a bankruptcy case dismissed within 180 days for willful failure to appear before a bankruptcy court or disobedience of a court order.

Why File for Chapter 7 Bankruptcy in Vermont?

A Chapter 7 bankruptcy in Vermont gives a debtor a fresh financial start. The debtor may retain their exempt assets while their nonexempt assets are sold to repay the debts. A majority of the remaining debts are then discharged. The debtor may start again financially while retaining some of the personal property and valuable possessions.

What is Chapter 13 Bankruptcy in Vermont?

A Chapter 13 bankruptcy in Vermont is a kind of bankruptcy for individuals to pay their debts within three to five years through a repayment plan. The total amount that a debtor filing for a Chapter 13 bankruptcy would pay should be at least equivalent to the amount that would have been paid under a Chapter 7 bankruptcy. The debtor would be required to make monthly payments towards the debt. Therefore, a debtor filing for a Chapter 13 bankruptcy should have disposable income.

A debtor that wishes to file for a Chapter 13 bankruptcy may do so at the bankruptcy court serving their area of residence. The debtor would be required to file the following documents.

• A record of the debtor’s liabilities and assets
• A record of the debtor’s income and expenditure
• A record of unperformed contracts and unexpired leases the debtor is a party to
• The debtor’s statement of financial affairs

Do I Qualify for a Chapter 13 Bankruptcy in Vermont?

Individuals whose unsecured debts do not exceed $394,725 and whose secured debts do not exceed $1,184,200 are eligible for a Chapter 13 bankruptcy in Vermont. The individual would need to show the court that they cannot ordinarily meet up with their debts to the creditors. The debtor should not have filed for bankruptcy successfully within the past few years. Additionally, the debtor shall be unable to file for bankruptcy if a previous bankruptcy petition by the debtor was dismissed because the debtor willfully failed to appear before the court or disobeyed a court order. The debtor should have received credit counseling within six months of filing for a Chapter 13 bankruptcy.

Why File for Chapter 13 Bankruptcy in Vermont?

A Chapter 13 bankruptcy in Vermont allows an individual in debt to pay their debts with a repayment plan. A repayment plan may reschedule the due date for the debts. It may also reduce the amount of money to be paid to discharge the debt. Also, a Chapter 13 bankruptcy prevents the creditors from carrying out collection action. The debtor may use a Chapter 13 bankruptcy to prevent foreclosure and repossession.

What is the Difference Between Chapter 7 and Chapter 13 Bankruptcy in Vermont?

The primary difference between a Chapter 7 bankruptcy and a Chapter 13 bankruptcy is that while a Chapter 7 bankruptcy requires liquidation of the debtor’s assets, a Chapter 13 bankruptcy involves a repayment plan. In a Chapter 7 bankruptcy filing, the court appoints a case trustee. The trustee gathers the debtor’s nonexempt assets and sells them to repay the creditors to the extent that can be covered. In a Chapter 13 bankruptcy, the debtor submits a repayment plan which the creditors may vote on. The repayment is usually within three to five years. Within the term of years, the debtor makes monthly payments towards satisfying the debt. A Chapter 7 bankruptcy only takes a few months and the debts that remain after liquidation are discharged apart from debts that cannot be discharged, such as taxes, mortgages, and car payments. The debtor would still be required to make the payments that cannot be discharged after the bankruptcy proceedings. A Chapter 7 bankruptcy is available to a debtor who cannot meet up with their debt obligations, while a Chapter 13 bankruptcy allows debtors to reschedule payment dates and potentially reduce the debts. The total amount to be paid under a Chapter 13 bankruptcy should not be less than the amount that would have been paid if the debtor had filed a Chapter 7 bankruptcy.

What is Bankruptcy Protection in Vermont?

Bankruptcy protection in Vermont is an “automatic stay” order issued by the court when a debtor files for bankruptcy. The order prevents creditors from engaging in collection actions. The court serves a notice of the order to the creditors at the address provided for each creditor by the debtor while filing for bankruptcy. The order is binding on any creditor that receives it. The creditor shall be prevented from attempting to recover the debt outside of the bankruptcy proceedings. This includes actions like foreclosure, legal action, enforcement of court judgments, repossession, phone calls, and text messages. A creditor who receives the order and fails to comply with it may face legal consequences. The consequences include:

• Fines and other penalties for contempt of court
• Court costs
• Attorney costs
• Damages awarded by the court against the creditor

What are Vermont Bankruptcy Exemptions?

Vermont bankruptcy exemptions contain the assets that a debtor may retain after filing for a Chapter 7 bankruptcy. Debtors filing for bankruptcy in Vermont have the option of choosing between state exemptions and federal exemptions. Debtors cannot use both state and federal exemptions and may only select one. Also, debtors that use state bankruptcy exemptions may also use the federal nonbankruptcy exemptions. The exemptions in Vermont include:

• Homestead exemption. A debtor filing for bankruptcy in Vermont may retain up to $125,000 worth of equity in a single home. It may be a mobile home.
• Motor vehicle exemption. A debtor filing for bankruptcy in Vermont can retain up to $2,500 equity in a car, van, motorcycle, truck, SUV, or another motor vehicle.
• Personal property exemption. Furniture, household appliances, clothing, books, musical instruments, and animals are exempted up to $2,500. Bank deposits are exempted up to $700. Growing crops are exempted up to $5,000.
• Pensions exemption. Debtors filing for bankruptcy can retain their pensions completely.
• Public benefits exemption. Public benefits are fully exempted and cannot be used to repay debts. These include social security benefits, aid to the visually impaired, disabled, and elderly, unemployment benefits, veteran’s benefits, workers’ compensation, and compensation to victims of crimes.
• Tools of trade such as equipment and books used for the debtor’s profession are exempted up to $5,000.
• Insurance exemption. A debtor filing for bankruptcy may retain insurance benefits in some cases. Where it is life insurance, the debtor may retain it if it is the proceeds from the death of someone they depended on, the contract explicitly says it may not be used to pay debts, and unmatured life insurance contracts.
• There is an alimony and child support exemption in Vermont.
• Wildcard exemption. Debtors filing for bankruptcy may have a wildcard exemption of up to $7,400. Debtors can keep any property of their choice up to $400. The debtor may also use up to $7,000 of unused exemptions in motor vehicles, tools of the trade, jewelry, household furniture, appliances, clothing, and crops exemptions to retain any assets of their choice.

What are the Other Types of Bankruptcy in Vermont?

Vermont recognizes a Chapter 12 bankruptcy filing. This form of bankruptcy was created specifically for fishermen and farmers. It is available to both individuals and businesses engaged in fishing or farming and with debts majorly gotten from the activity. For farmers, the debt should not exceed $4,153,150 to file for a Chapter 12 bankruptcy. For fishermen, the debt should not exceed $1,924,550. Other options besides filing for bankruptcy are also available for debt management in Vermont, such as credit counseling and reaching an out-of-court agreement with creditors.

How Much Does It Cost to File Bankruptcy in Vermont?

There is a situation of filling a Bankruptcy petition pro se and a Bankruptcy petition with bankruptcy in Vermont. To file for bankruptcy in a pro se bankruptcy case of chapter 7 is $335, except when the client earns less than 150% of the federal poverty guideline and does not own property, and $313 for a chapter 13 bankruptcy. But the cost of filing bankruptcy changes when the client wants the filing fee waived or decides to file with a bankruptcy attorney.

A chapter 7 bankruptcy attorney will charge higher than in the case of a petition of chapter 13. It cost $1170-$1500 for a chapter 7 bankruptcy attorney in Vermont and this cost may vary depending on the level of the attorney’s recommendation and connection, the complexity of the bankruptcy case, and the location of the federal court ( Burlington $1500 and South Burlington $1,300).

A chapter 13 bankruptcy attorney in Vermont cost $2500, depending on the location of the district court.