This article will guide you on the basic 7 steps that will be included when you file for bankruptcy. It is in short an overview of the timeline that you will be following from the time you decide to file for bankruptcy.
Step #1 – You must Hire an Understanding as well as an experienced attorney – This will most importantly help you in the process of filing for bankruptcy, as an experienced attorney knows how to go about things without wasting your time that too with precision.
Step #2 – Keep all data handly and ready for Uploading – It is important to keep all the documents and files ready. They may include – bank statements, car and house titles, mortgage as well as the deed papers, tax returns, social security card copies, retirement account info if any, separation or divorce decrees, along with the proof that you have attended the credit counseling course.
Step #3 – Attending the signing meeting – Once your attorney has submitted all the documents as per the requirement and filed for bankruptcy, you along with your attorney will need to attend the signing meeting. Here you will need to review all the documents submitted by you and then finally sign the application for filing for bankruptcy.
Step #4 – Filing of the Application – After you attend the signing meeting, your attorney will file the case. Once it is officially filed, you will stop receiving collection calls from your creditors as they will have to abide by the law.
Step #5 – Setting of the 341 Hearing Date – This is a confirmation and an oath swearing with the court where they will confirm the application filed by you along with the authenticity. This hearing is generally done between the court, the attorney, and the Filer (here You)
Step #6 – Amendment and Resubmission of the Application – The next step after you attend the Hearing meeting with the court, is to wait for the file to process. This usually takes about 5-7 months if no amendment is required. In case the court requires an amendment, then you need to amend and resubmit the application.
Step #7 – Acceptance by the Court – Once the case is accepted, it is deemed to be completed and you get your dismissal. However, once your bankruptcy is processed, your credit score will come down.
Expectation Setting – Once your application is accepted by the court (Including amendment if any), it takes about 5-7 months for the court to announce their decision. However, the process between step #2 (filing the application) to Step #6 (Amendment and Resubmission) may take months or even longer. So it is important to understand that legal proceedings take time and you cannot rush through it. So be prepared for the time and have expectations accordingly.
Chapter 7 is also known as the liquidation bankruptcy. This is because it involves selling or liquifying your assets to pay off your debts.
However, Chapter 13 which is also known as the reorganization bankruptcy, involves paying off your debts by spreading them over a period of 3-5 years over the repayment plan. It is however important (irrespective of which Chapter you decide to file under) to have a good attorney to guide you while you decide to file for bankruptcy. You can also consult – 888-297-6203