WHAT ALL IS INVOLVED IN A BANKRUPTCY AND WHEN WILL IT BE OVER?

You must receive a pre-bankruptcy certificate and budget analysis before filing.

Day 1:
Bankruptcy documents are filed with the Court. This results in an immediate stay. All collection and legal actions must stop.

Day 14:
Your creditors are advised by the clerk that a petition has been filed. Debtors that wish to file for Chapter 7 or Chapter 13 bankruptcy must provide a copy of a tax return for the period for which the return was most recently due, to the trustee at least seven days prior to the 341 meeting.

Day 20-Day 40:
The creditors meet at the Court (341 meeting) which usually lasts less than 5 minutes. The debtor must attend this meeting. Creditors usually do not attend and only receive a few minutes to ask questions if they do decide to be present. The trustee assigned to the case presides over the meeting which is tape recorded or documented by a court reporter. The trustee will ask you questions, under oath, such as:

  • Did you read the schedules before signing? Did you list all of your assets? Did you list all of your debts? Are the schedules accurate? Do you want to make any corrections to the schedules? Are you cars insured? Have you destroyed your credit cards?
The trustee will ensure that the debtor is aware of the following: The effect on credit history, the effect of receiving a discharge, the effect of reaffirming a debt, the ability to file a petition under a different chapter.

Day 20-Day 30 and after:
The trustee will sell any of your assets that are not exempted by bankruptcy rules. The money from the sale will be distributed to your creditors. If anyone owes you money, the trustee can pursue causes of action which are lawsuits belonging to you. The trustee can also undo security interests and other transfers of property that occurred and were in violation of bankruptcy rules.

Day 30 (after the 341 meeting):
Debtors must perform a statement of intent as to secured property (a vehicle) within 30 days after the date set for the first creditors meeting. If the debtor fails to redeem the property or reaffirm the debt within 45 days after the s. 341 meeting the automatic stay will be terminated and the creditor can take the asset.

Day 90:
Unsecured creditors must have filed their claims. You must have completed a budgeting course in personal financial management in order to be eligible for a discharge.

Day 60-Day 90:
The debtor is discharged and most debts are written off.



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