What Is The Process Of Bankruptcy Like – Part 2

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Right before we took Steve’s call we were talking about the bankruptcy process I think I got in just about from the consultation to being given a giant list of document that you have to gather up it’s not too bad you know 6 months of income records, 2 or 3 years of taxes and then the information on the creditors.

Once your attorney has all of that information they can actually draft the bankruptcy petition. So we go back draft that and then have you come by the office so we can walk you through each page of it, have you signed at the time if everything is as it supposed to be and then once it’s signed we can go ahead and get the case filed. Your filing dates are pretty important date in the whole process. It’s going to determine what debts do or do not discharge. If you ever read those discharge orders at the end they actually specify in there that this discharging debts that were incurred prior to the date of filing. So your filing date is the one you want to write down somewhere where you can keep track of it and then your case number too, of course.

Well about 10 days after your case is filed give or take, you’re going to get the letter from the court and that’s going to tell you where the 341 hearing is. That’s also sometime called the meeting of creditor. That’s what Steven and I were talking about just a moment ago. Lot of people have a lot of anxiety about these hearings and it’s pretty unfounded. We’ve seen people just, you know, wrenching their hands before they go in there and they are laughing on the way out. I mean it is a federal hearing so you want to take it seriously but it is not the anxiety producing event that most people give it credit for. The ones that we have usually runs about 3 to 5 minutes it’s not the kind of thing where you are sitting in a court room with a judge on a high bench. You are generally sitting in an office building’s room that just looks like a class room, frankly. There is a desk at the front. The trustee is sitting there. You are sitting there. One of us is sitting there with you too and there is a tape recorder in the middle just to keep track of what’s been said and for the most part they got a series of questions they have to ask you, have you read everything, is it complete and accurate, they’ll ask you if want to make changes. Things like that and few other questions but it’s generally about 3 to 5 minute hearing.

Then after the hearing there is a 60 day period and after that’s expired the courts allowed to issue the discharge order and that’s the order that actually gets rid of your debts or your obligation to pay on those debts and then it just kind of depends on how long it takes the trustee or the court themselves to you know riffle through and finish off the rest of their paper work. Generally it might be a month or two month later that you will get a closing order and all that’s sent to you in the mail. Then when you get the closing order you know everything is finished, done and over with. That’s a chapter 7 process from filing to end.

A 13’s a little bit longer. It’s the same process for consultation, gathering documents, drafting the petition and plan and then signing it and filing it, except in a 13 you file the case you have the same similar 341 hearing about a month later. But then your attorneys have other hearings that they go to that deal just with the plan. And that’s the document that tell the trustee how to allocate the money you should pay in each month. We call those confirmation hearings so we’ll go through series of those as many as it takes to get everybody on the same page and get the plan confirmed. But once that 13 is been filed you either set it up to include 36, 3 years, worth of monthly payment to the trustee or 60 months, 5 years, of payment. So you proceed and make those each payments each month until they are done and then the court would issue a discharge order very similar to what that they issue in a chapter 7 and that just eliminates any of those debts that weren’t paid through the plan. And then you through the normal closing order procedure and you are done. And that’s pretty much how you do 7 or 13, at least timeline wise from the day you meet your attorney to the day you are done with the court’s process.

To continue reading the answer, see the text below or jump to another question using the links below:

  1. How Do You Know If You Qualify For A Bankruptcy?
  2. What Is Unsecured Debt?
  3. What Is The Process Of Bankruptcy Like?
  4. Can A Chapter 13 Be Converted To A Chapter 7?
  5. What Is The Process Of Bankruptcy Like – Part 2
  6. When Is The Best Time To File?
  7. How Can I Rebuild Credit After A Chapter 13?
  8. Can A Chapter 13 Be Amended?
  9. Can Filing Bankruptcy Prevent An Increase In Out Of Court Settlement?
  10. Is There Any Way To File Bankruptcy And Keep My Car Or My House?
  11. Will People From The Bankruptcy Court Send Someone To My House To Look At My Stuff?


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