Thursday, 3 October 2019

What Happens If You Declare Chapter 7 Bankruptcy

In this article, I want to tell you what to expect in a chapter 7 bankruptcy if you file one. First of all, you can file as an individual whether you are married or single or if you are married you both can file together. That is your choice. You will have a petition schedule and statement of financial affairs, that is filed that will start the bankruptcy. If you don't have all of those filed together, there will be an order issue from the court that will give a deadline that your case will be kicked out if those things are not complied with. You also have to have the filling fee filed. Now, I have another article on how to prepare and what information you need before you meet with your attorney, read the article below.

  • After you file the case a notice will be generated, that is the order for relief and this will be something that is sent to all of the creditors that are listed and it will notify them of the bankruptcy filing. So, it's important that your information be complete. 

There will be a 341 meet notice given a date and a time and place for you to appear with your attorney to meet with the chapter 7 trustee and be examined. Your creditors also receive this notice, so, they will also be able to attend and ask questions that are going to be generally held in the same building as the courtroom where the judge is, but it will not be in the actual courtroom so pay attention to where that meeting room it.

  • The chapter 7 panel trustee are attorneys that are appointed by the US trustee in your federal district and they govern the administration of the bankruptcy case. They are assigned certain cases and their job is to make sure that things are done correctly, and also to look for any assets or transfer or property they can pull out of the bankruptcy case and sell those for the benefit of unsecured creditors.

At the time that you have filed, you will have given a statement of what you intend to do with a certain property. Generally, you are going to be asked to sign a reaffirmation agreement with that creditor, so, those are going to be agreements that will come to you to review and for review by your attorney and ultimately approval by the court, so, that will be coming after you file the case. Like I said you will have the 341 meets where you are examined if everything all the information is available and provided to the trustee at that time, they will then concluded it and you will be finished with that part. If there is other information that the trustee requires or that wasn't ready yet then the meet will be continued and you will go back again.

Once that is concluded, then there will be other time limits that start to run if you pass through all of those without any other actions being filed, then you will receive a discharge. There is a situation where you will not ever go to court, you will go to the 341 meetings, your attorney will notify you that the discharge has been issued and you will then receive notification and you will receive that discharge paper. In other situations, if any other actions have been filed against you or against the property that involves you, then you will possibly go to court depending upon what happens there. The whole process takes as long as it takes based upon your individual situation, how busy the court is, where you live, and how soon you are able to get into that 341 meetings.

So, ask your attorney when you go in to get everything done, ask them how long their cases have typically taken and they should be able to give you that information.

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