The Process for a Chapter 7 Bankruptcy
Sep 26, 2024
Consultation
Your first step is to meet with an experienced bankruptcy attorney for a debt relief consultation. The lawyer will ask you several questions about your assets, debts, and income to help figure out the best debt relief option for your situation. They can verify that you qualify for a Chapter 7 Bankruptcy, confirm that you are able to keep all your property, that your household income qualifies and discuss what debts will be eliminated. The attorney will also explain the process, provide a list of documents needed to prepare your case, explain the credit counseling requirements, and answer any questions that you have.
Preparation & Filing
Once you decide that a Chapter 7 Bankruptcy is your best debt relief option, you will meet with the attorney to gather the necessary information to start preparing your bankruptcy case. After you provide the required documentation and complete your credit counseling, your attorney can prepare your case for filing. Once prepared, you will review the paperwork with your lawyer in detail and sign the documents. The day you sign your bankruptcy paperwork is the day your case is filed with the court. Once your bankruptcy is filed, the automatic stay goes into effect. The automatic stay is an injunction that protects you from your creditors and stops collection efforts, including wage garnishments.
Court Hearing
Approximately 30 days after your bankruptcy case is filed there will be a court hearing, called a 341 Hearing or Meeting of Creditors. Your creditors are given notice of the hearing, but generally do not attend. Your appearance is required at the Meeting of Creditors hearing. You will swear under oath that your bankruptcy paperwork is true and correct and answer any questions the trustee has. The questions will focus on your assets, debts and financial matters listed in your bankruptcy. The hearing usually takes about 15 minutes, and your attorney will be present. Assuming no objections, the court will grant your discharge approximately 60 days after your court hearing. If you have not completed your second credit counseling course, now would be the time to do so.
Reaffirmation Agreements
If you have any secured loans, such as a car loan or mortgage, you may enter into a reaffirmation agreement. This is a legal document stating that even though you filed for bankruptcy, you are choosing to still be liable for the debt. In order for a creditor to offer a reaffirmation agreement, you must be current on your loan. Whether or not you should enter into a reaffirmation agreement depends on your individual circumstances. If you are unsure what is best for your situation, you should discuss it with your bankruptcy attorney. Reaffirmation agreements need to be completed and filed with the court prior to the discharge of your bankruptcy case.
Discharge Order
The goal of filing a Chapter 7 Bankruptcy is to receive a Discharge Order from the Bankruptcy Court. Your bankruptcy discharge is a permanent order prohibiting your creditors from taking any form of collection action on the discharged debts. This includes telephone calls, letters and lawsuits. Once the deadlines have passed and the court receives all the required documents, the court issues your Discharge. A copy of the Discharge Order is sent to you and all the creditors listed in your case.
FREE CONSULTATION
If you are struggling financially, bankruptcy can eliminate your burdensome debt and get your finances back on track. At Pedersen Law Office, LLC we understand how stressful being in debt can be; that is why we offer free consultations. We will discuss your circumstances and goals to help figure out what debt relief option is best for you and help you through the entire process. Our law office serves the communities of Appleton, Neenah, Menasha, Oshkosh, Green Bay and their surrounding areas.
