Step By Step Guide To Bankruptcy Proceedings
You may be in a position where your financial burdens have become too heavy for you to bear alone and bankruptcy seems to be the only option left. Once that decision has been made, you’ll find that there is a lot of work to be done. To help you understand the basics of what comes next, here is a step by step process of a bankruptcy proceeding.
- 1. Determine which type of bankruptcy is right for you.
The two most common types of bankruptcy to be filed are chapter 7 and chapter 13.
Filing for Chapter 7 bankruptcy will often allow you to keep the majority of your property. Chapter 7 will be appropriate for you if you are current with your mortgage and car payments, but are struggling to make the rest of your credit card payments and payments to other debtors.
Chapter 13 bankruptcy may be appropriate if you cannot qualify for chapter 7 proceedings. To decide which proceedings are most appropriate for your case, you’ll work with your attorney to establish how you qualify.
- 2. Attend a credit counseling course.
This is necessary no matter which bankruptcy course you choose. You will be given some time to choose an approved credit counseling agency and a deadline for completion of this course. Without the certificate for finishing, your bankruptcy case will be over.
- 3. Compile and complete necessary paperwork.
The paperwork to be filed will include the fullowing, but may also include other forms provided to you by your attorney.
- Bills
- Documentation specific to amount of money that you owe
- Titles to automobiles and homes
- Value of all assets
- Bank statements
- Proof of other financial liabilities
- Names, account numbers and addresses for every creditor
- Tax returns
- Paycheck documents
Upon the completion of this paperwork, your attorney will file your bankruptcy case. At this time a stay will be granted, so that any action on the part of your creditors will be stopped. At this time the court will assign a Trustee to your case.
- 4. Completion of the 341(a) meeting.
This meeting usually takes place within a month or two after your case has been filed. You will meet with the Trustee and you will take an oath swearing that the information you provided was accurate. Your bankruptcy attorney will attend this meeting and creditors may do so, although this situation is uncommon. Your documents will all be reviewed and the Trustee will use available assets to make payments to your creditors.
- 5. Creditors have the opportunity to object to the proceedings.
- 6. Complete a financial management course.
This class must be completed within 45 to 60 days after the 341(a) meeting. A certificate verifying your completion of this course will be sent to the court. Without completing this course, you will not be able to receive a discharge.
- 7. Receive a Notice of Discharge from the court.
At this time you will no longer be responsible for the eligible debts. There are some debts that are not covered by a bankruptcy discharge. These may include, but aren’t limited to:
- Child support
- Alimony
- Student loans
- Some taxes
If you filed for chapter 7 proceedings, then you are finished at this point. If you have filed for chapter 13 bankruptcy, however, you will still have a few additional steps.
- 8. Meet the Repayment Plan payment requirements.
At this point you may have several months to fulfill the payments set forth in the Repayment Plan. If you are successful in the completion of this plan, then you will be eligible for your discharge. In some cases the Repayment Plan may extend up to five years. Your attorney will help you to understand the requirements set forth.
- 9. Receive your discharge after your final payment has been made.
At this point the proceedings for chapter 13 will be complete.
For more information pertaining to bankruptcy proceedings, please visit the fullowing website: www.californiabankruptcyrelief.com.
Do you have more questions about bankruptcy? Have you considered bankruptcy in the past and then decided against it?
