The entire process takes about 3 months (CHAPTER 7) and is summarized in 4 easy steps: Once you’ve chosen us to assist you with your bankruptcy case, you will need to provide documentation regarding your financial situation and to fill out our Bankruptcy Intake Form. ·
Go to Credit Counseling – One of the requirements of bankruptcy is to attend credit counseling classes. These classes are designed to educate you regarding finances so that you do not wind up in the same situation again. Classes are simple and take a short amount of time to complete and can be done on the web. About 1 weeks after you provide us with a completed Bankruptcy Intake Form we will have your bankruptcy ready for filing! We will schedule to review the details of the petition and sign the required documentation. ·
Bankruptcy Petition Filed and Case Number Provided – The day after signing your petition we will file the documents with the bankruptcy court and you will receive your case number. Once you have a case number, you will be required to attend another educational course. This should either done prior to you first bankruptcy court hearing or no more than 60 days after your bankruptcy hearing. ·
‘Automatic Stay’ Goes into in Effect – This stops all creditors from making any attempts to collect money from you or to even call you. All judgments or pending law suits are also stopped as of the moment in time of your bankruptcy filing. ·
Notice From Bankruptcy Court – After your bankruptcy petition has been filed with the court, you will receive a notice informing you of your hearing date. Normally the hearing will take place about 30 days after your petition signing. You will need to appear before the court for a hearing during which the bankruptcy trustee will ask you a series of questions. Your bankruptcy lawyer or paralegal will prepare you for these questions and get you ready for the hearing. The hearing itself is relatively short, only ten minutes in many cases. ·
Keeping Property (Reaffirming Debt) – During the bankruptcy court hearing, if there are any debts that you would like to “reaffirm”, meaning you would like to keep the property, you will need to bring this up and sign a reaffirmation agreement. This means you will agree to a repayment schedule with the creditor. Often times a discounted rate will be offered in order to help you with the repayment, such as a car payment. About two months after you court hearing, you will receive a Notice of Discharge from the bankruptcy court. At this point, your bankruptcy case is over and you are relieved of all debt, except that which you chose to reaffirm.