Chapter 7 Bankruptcy Timeline
The most obvious advantages to filing for bankruptcy under Chapter 7, is the debtor will get a fresh start. In a Chapter 7 bankruptcy, all unsecured debts will be wiped out giving the debtor a chance to start over. The Chapter 7 bankruptcy process begins with the debtor deciding that filing bankruptcy is the solution to their debts. The next step would be to consult with a bankruptcy attorney for an evaluation of the individual’s financial situation. The bankruptcy attorney will ask the debtor to gather all of their personal information required for the bankruptcy filing. The individual will be required to show six months of pay stubs, the last year’s bank records, a list of all creditors and a list of all property owned. The bankruptcy attorney will take all this information and will prepare the bankruptcy petition for filing. While preparing the bankruptcy petition, the attorney will choose bankruptcy exemptions that will best protect the debtor’s property. Prior to filing for bankruptcy, the Bankruptcy Court requires the debtor to take a pre-bankruptcy credit counseling course. When the bankruptcy petition has been prepared, the bankruptcy attorney will file it with the court.
After the bankruptcy has been filed with the court, the automatic stays is put in place and all the creditors will no longer be able to call the debtor, garnish wages, or take any kind of legal action against the debtor to collect a debt. If the creditors continued to harass the debtor while knowing about the bankruptcy filing, the bankruptcy attorney should be notified to get sanctions against the creditor.
About 4 to 6 weeks after filing bankruptcy, the debtor and their bankruptcy attorney will be required to attend the 341 meeting or the meeting of the creditors. The bankruptcy attorney will represent the debtor at the meeting of the creditors as well as prepare them on what questions to expect from the bankruptcy trustee. After the 341 meeting, the debtor will be required to take a post bankruptcy financial management course that will have to be submitted to the court prior to the bankruptcy discharge. Now all the debtor has to do is to wait to receive their bankruptcy discharge in the mail. The whole bankruptcy filing process from beginning to end takes about 3 to 6 months.
Proper planning will allow you to proceed with your bankruptcy making the right decisions without having to be in a rush. When it comes to bankruptcy many individuals create their own problems because of waiting till the last minute to call. Be proactive and take a minute to fill out the form to get a FREE NO OBLIGATION CONSULTATION with a local bankruptcy attorney to discuss your situation.