The Chapter 7 Bankruptcy Process
When you're worried about finances, filing for bankruptcy may seem like just one more thing to cause stress. After all, filing for bankruptcy involves a good deal of complex legal paperwork and procedures.; For exactly this reason, a bankruptcy lawyer, who has experience with the bankruptcy process, can be an ideal resource in a time of uncertainty.
What Do I Have to Do Before Filing My Bankruptcy Petition?
The various deadlines, procedures, and regulations involved in filing bankruptcy can appear complex and, frankly, confusing to someone without legal training. A lawyer with experience handling Chapter 7 bankruptcy cases can educate you about the process of filing and provide you with ongoing advice about the various papers, statements, and petitions required.
Be certain that you take your attorney's advice seriously. Do not try to destroy any financial records, conceal property, violate court orders or make large, last-minute credit card charges. These maneuvers cannot help you, and may result in your case being thrown out before you are granted a discharge!
Before filing your petition, you must:
- arrange to meet with your lawyer, so that you can provide the information needed to complete the petition and schedules. This includes a list of the property you currently own and its value, a list of creditors you owe and payments you have made, employment or other income information, and anything else your bankruptcy attorney requests.
- complete a Credit Counseling Briefing approved by a U.S. Trustee and give the certificate of completion to your lawyer to file with your petition
Once you've taken these steps, your bankruptcy lawyer can file your petition and credit counseling certificate with the court, and so get your bankruptcy proceedings underway.
After Your Petition Is Filed
Once your bankruptcy lawyer has filed your bankruptcy petition, you're well on your way. But there are still certain measures you have to take to make sure your bankruptcy petition is filed correctly and your actions are in accordance with the procedures required by the bankruptcy court.
When your petition has been filed, here's what will happen:
- The court will grant you an "automatic stay," which will prohibit creditors from collecting any debt and taking any legal action against you.
- Your creditors will receive a notice of your case.
The court will appoint a federal employee called a "trustee" to oversee your case. Your trustee will monitor your case, review your petition, monitor your case, ensure that you qualify for Chapter 7 bankruptcy, and, when satisfied that everything is in order, schedule a meeting of your creditors.
How Can I Ensure that My Chapter 7 Bankruptcy Petition Is Approved?
To ensure that you're eligible to receive your discharge as soon as possible, your bankruptcy lawyer will help you verify that all your paperwork has been filed properly, according to standard legal procedures. When your petition has been filed, you and your bankruptcy lawyer can expect:
- Within 15 days, to file any schedules not filed with the petition.
- Within 30 days, to file a Statement of Intention regarding any secured property.
- About 6 weeks from filing, to attend the Meeting of Creditors.
At some point between your filing and your discharge, to complete a U.S. Trustee-approved Debtor Education course.
The Statement of Intention
Filed within 30 days of filing your bankruptcy petition (or before the meeting of the creditors, if it falls in that period), the Statement of Intention is a written document composed by your bankruptcy lawyer. Its purpose is to explain whether you plan on keeping your secured assets or surrendering them to your creditors. After the filing of the statement, there is a 45-day window in which you can act on the plans outlined in your statement, either by surrendering the property or making payments. A bankruptcy attorney can give more specific details on this and answer any questions you might have.
The Meeting of the Creditors
About six weeks after your bankruptcy petition is filed, the Meeting of the Creditors is held with your bankruptcy trustee. The court will send you and your creditors a Notice of Commencement of Case approximately 15 days after filing. This notice will include the time and date of the creditors" meeting and all deadlines for creditors to file claims or make objections.
At the meeting-which you MUST attend-you will verify under oath the correctness of the information you have given. If you are not present at the meeting, the bankruptcy trustee will alert the court to throw out your case!
Creditors who attend this meeting may question you, but most will choose not to attend. You must give the trustee (and any creditor who requests it) a copy of your most recently filed tax return at least one week before the meeting. After the meeting, creditors are allowed 30 days to refute your claims and 60 days to object to the discharge of specific debts for statutory reasons.
Your Chapter 7 Bankruptcy Discharge-When Is It Final?
Though the various steps in the bankruptcy process may seem complicated, your bankruptcy lawyer will help you complete the proper forms and submit the appropriate documentation. In the 60 days following the Meeting of Creditors, the creditors listed in the bankruptcy petition can object to specific debts on statutory grounds. If the trustee considers the filing abusive, he can move to dismiss the case in that time period. After the 60 days pass, your bankruptcy discharge will be granted!
Should neither of these disputes arise in your case, you could receive your bankruptcy discharge as early as three and a half months after the filing of your petition.
Don't Hesitate to File a Chapter 7 Bankruptcy Petition! Debt Discharge Could Be Nearer Than You Imagined!
If creditors are plaguing you, bankruptcy could well be a way for you to get relief. The bankruptcy attorneys at Total Lawyers are devoted to handling bankruptcies for people in your situation. They have experience in both getting people back on track financially through bankruptcy proceedings, and in helping people rebuild credit after discharge.
Can't take many more creditor phone calls and collection letters? Get in touch with us today. You can fill out our secure and confidential online case evaluation form to set up a free, no-obligation consultation with one of our sponsoring lawyers, who will contact you at your convenience. You can also call our toll-free 24-hour hotline at 1 (877) 349-1309.
If you're still hesitant about beginning your process, please take the time to peruse the many educational resources we have on our website.