Within a few hours of your filing, your case will be assigned to a judge and a trustee. The trustee is a lawyer appointed by the bankruptcy court to administer your case. In addition to assigning a trustee, the court will also set a date for your court appearance about 4 to 5 weeks after the filing.
In that case, the court will typically close your case shortly after you receive your discharge. But as we discussed, if you have nonexempt assets the trustee needs to administer or ongoing lawsuits in your bankruptcy, the court will not close your case until all issues are resolved and all property is administered.
Bankruptcy is a specialized area of the law. For example, even a lawyer who regularly handles Chapter 7 bankruptcies might not possess the knowledge and skills necessary for a Chapter 13 matter. Every attorney must represent clients with competency. If your attorney cannot handle your case, you need a new attorney.
But your bankruptcy doesn't end when you receive your discharge. Your case is not officially over until the court closes it by entering a final decree or order. Until your case is closed, you have a continuing duty to cooperate with the bankruptcy trustee to resolve any remaining issues.
The automatic stay is an order that goes into place and stops most collection efforts during your bankruptcy. But the stay isn't absolute. A creditor can ask the bankruptcy court to lift the automatic stay and allow collection efforts to resume. If successful, the creditor can continue pursuing its debt.
A chapter 7 bankruptcy case can be reopened after discharge and case closure under certain circumstances. Bankruptcy Code §350(b) authorizes the bankruptcy court to reopen a case for various reasons, including to "administer assets, to accord relief to the debtor, or for other cause." Fed.
four to six monthsA Chapter 7 bankruptcy can take four to six months to do, from the time you file to when you receive a final discharge – meaning you no longer have to repay your debt. Various factors shape how long it takes to complete your bankruptcy case.
The bankruptcy is reported in the public records section of your credit report. Both the bankruptcy and the accounts included in the bankruptcy should indicate they are discharged once the bankruptcy has been completed. To verify this, the first step is to get a copy of your personal credit report.
For most filers, a Chapter 7 case will end when you receive your discharge—the order that forgives qualified debt—about four to six months after filing the bankruptcy paperwork. Although most cases close after that, your case might remain open longer if you have property that you can't protect (nonexempt assets).
Filing for Chapter 7 bankruptcy eliminates credit card debt, medical bills and unsecured loans; however, there are some debts that cannot be discharged. Those debts include child support, spousal support obligations, student loans, judgments for damages resulting from drunk driving accidents, and most unpaid taxes.
While the majority of your debts will be wiped out after you've been discharged, there are some exceptions. These include debts such as those gained by fraud, maintenance settlements, personal injury damages owed, student loans, court fines and any debts you incur after the bankruptcy order.
What to do after filing for bankruptcySave all paperwork from your bankruptcy case. ... Start saving money and build a budget. ... Reestablish good credit. ... Regularly monitor your credit reports. ... Maintain your job and home. ... Make an emergency fund. ... Think of your financial future.
After you submit your petition, the trustee will review the filing and schedule your meeting of creditors. This is usually around a month after your filing date, but it could be longer. Then, you will wait about 60 days further for the full discharge. After this occurs, you can buy a car immediately, if necessary.
You can wipe out unsecured consumer debts like medical bills, utility bills, back rent, personal loans, some government benefit overpayments, and credit card charges. These unsecured debts are dischargeable in Chapter 7 bankruptcy.
Got your bankruptcy discharge recently? The end of the bankruptcy case is the start of your new financial life. Now, you’ve got work to do to maximize that fresh start. Save your bankruptcy papers The bankruptcy schedules listed everyone you owed money to when you filed. Those creditors got notice of your case. The […]
Sometimes someone will receive a money or property settlement after filing for bankruptcy. Although a filer can keep most types of property acquired after filing, settlement proceeds are an exception.
Upsolve is a 501(c)(3) nonprofit that started in 2016.Our mission is to help low-income families who cannot afford lawyers file bankruptcy for free, using an online web app. Spun out of Harvard Law School, our team includes lawyers, engineers, and judges. We have world-class funders that include the U.S. government, former Google CEO Eric Schmidt, and leading foundations.
Bankruptcy is typically considered a last resort option for people suffering financial hardship, and for good reason. Going through bankruptcy can give you a chance to get your finances in order, and possibly even get a clean slate—but it also has negative consequences that can affect your possessions and make it difficult to get approved for credit for years.
Your Bankruptcy Case Is Over When You Receive a Final Decree, Not the Discharge. Unless you make a mistake, such as forgetting to file your debtor education certificate, you'll get your discharge before the case is closed.A discharge is the bankruptcy court's order erasing qualifying debts, like credit card balances, medical and utility bills, and more.
If, after you file for bankruptcy, a creditor continues its collection actions against you, the creditor may be violating bankruptcy's automatic stay. Read on to learn when collection activities violate the stay and what you can do if a creditor continues to collect a debt in violation of the automatic stay.
Once you do file, they must leave you alone or they will have to answer to the bankruptcy court itself. This is part of what is known as the automatic stay, which prevents creditors from taking any action against you once the bankruptcy case is filed. If you give them a case number, they will know you have actually filed ...
The trustee is a lawyer appointed by the bankruptcy court to administer your case. In addition to assigning a trustee, the court will also set a date for your court appearance about 4 to 5 weeks after the filing. This is called a creditors meeting. Your creditors receive notice of your filing and can come on this court date and ask you questions.
This means that he is satisfied with your case and you do not have to come back for another hearing. Sometimes the trustee will instead adjourn your case.
This second counseling session must be completed within 45 days of your first court date, but can be done any time after the petition is first filed.
Unless there is some type of objection to your case, an extremely rare occurrence, you will be entitled to a discharge in 60 days. When the 60 days are up, the court will issue a discharge, which will be mailed to you and all of your creditors.
When cases are adjourned, you usually do not have to go back, but you should make sure your second appearance is not required. In most cases, the meeting is closed and there are no assets for the trustee to administer, and the trustee will file a no-asset report with the court.
Bankruptcy “reform” in 2005 tried in a number of ways to discredit and gag lawyers from helping debtors. One of those additions to the Bankruptcy Code prohibits lawyers from advising those filing bankruptcy to incur new debt. The statute makes no distinction about the kind of debt involved or the purpose served by the loan.
The $200/month clunker adder the the operation deduction was disallowed by the 9th Circuit BAP in April 2014. The three judge panel held that bankruptcy law does not incorporate all of the provisions of the IRS Manual, just because it uses some part of the IRS standards.
In Chapter 7 bankruptcy, you normally receive a discharge a few months after filing your case.
If the trustee or your creditors discover that you provided false information on your bankruptcy papers or didn't disclose all of your property, they can ask the court to reopen your case in order to administer those assets or even revoke your discharge. In some cases, you may also want to reopen your bankruptcy.
Until the court closes your case, you have a duty to cooperate with the trustee. This means that you may still be required to: turn over nonexempt assets to the trustee. provide additional information or documentation. testify in a pending lawsuit, or. appear at a deposition or 2004 examination.
Do Not Sell My Personal Information. Most debtors file for bankruptcy relief to discharge (wipe out) their debts. But your bankruptcy doesn't end when you receive your discharge. Your case is not officially over until the court closes it by entering a final decree or order.
In some cases, you may also want to reopen your bankruptcy. For example, if you accidentally forgot to list a debt or if a creditor is violating your discharge, you might ask the court to reopen your case to address these issues.
Your Responsibilities Don't End When You Receive a Discharge. Just because you received a discharge doesn't mean that you have no more responsibilities in your bankruptcy. If you have a complex bankruptcy with ongoing lawsuits or appeals, your case might remain open for a long time after the court grants your discharge.
If you filed for Chapter 13 bankruptcy, you typically have to complete your Chapter 13 repayment plan before the court will grant you a discharge. (To learn more, see The Bankruptcy Discharge .) Even if you receive a discharge, your bankruptcy remains open until the court enters a final decree or order closing your case.
Check your credit report about three months after you receive your bankruptcy discharge. (It takes a while for the credit-reporting agencies to update your report.) You can get a free copy of your report once a year from each of the three major credit bureaus at www.annualcreditreport.com.
What if a creditor tries to collect on a debt discharged in my bankruptcy? If a creditor contacts you, inform the creditor that the debt has been discharged in bankruptcy and give them your case number. If the creditor continues to contact you, let your attorney know.
If you stop paying on a discharged mortgage loan, and the home goes into foreclosure, the loan should still be be listed on your credit report as discharged in bankruptcy with a balance of $0. Although the foreclosure may show in the public records section of your credit report, the debt is discharged.
When you surrender a home in bankruptcy, you are informing the court and the creditor that you no longer wish to retain the property.
One reason debtors often see their credit rating rise soon after bankruptcy is the reduced income-to-debt ratio. In other words, the amount of debt that they have compared to their income is now much lower. The income-to-debt ratio is a significant factor in credit scoring. Therefore, you want to keep this ratio low.
The lender retains a lien on your car and can repossess if you get behind on payments. If you did not reaffirm the loan, it is unlikely that your credit report will reflect your post-bankruptcy payments.
A Chapter 7 bankruptcy typically shows on your credit report for ten years from the date that your bankruptcy case was filed (not the date of discharge). A Chapter 13 bankruptcy should drop off your report seven years from the date you filed your case.
If you successfully complete your bankruptcy case, you will receive a discharge that wipes out your personal liability for most types of debt. In most cases, the court will close your case shortly after it enters your discharge. But the court can reopen your bankruptcy case for a variety of reasons even after you receive your discharge.
The trustee or your creditors can also ask the court the reopen your bankruptcy after you receive a discharge. In most cases, the trustee or your creditors will want to reopen your case if they: 1 find assets that you didn't disclose in your bankruptcy paperwork 2 were prejudiced (harmed) because they didn't receive notice of your bankruptcy, or 3 discover any other material (significant) mistakes in your bankruptcy petition.
Reasons You Might Want to Reopen Your Bankruptcy. If the court dismisses your bankruptcy because you failed to file a required form or made some other procedural mistake, it's understandable that you might wish to reopen your case to fix the error.
If the judge agrees with your motion, he or she will sign the order to have your case reopened.
Who can request that your bankruptcy be reopened? In general, you, the bankruptcy trustee, or any other party in interest (such as a creditor) may ask the court to reopen your bankruptcy case. The basis for reopening a bankruptcy will typically depend on which party is making the request (discussed below).
In many jurisdictions you can file an ex parte motion ( meaning without giving notice to other parties) for the court to review. But court rules vary as to whether you can file an ex parte motion -- and they often depend on your reason for reopening your case.
The trustee or your creditors can also ask the court the reopen your bankruptcy after you receive a discharge. In most cases, the trustee or your creditors will want to reopen your case if they: discover any other material (significant) mistakes in your bankruptcy petition.
Your Attorney Misses Meetings or Hearings. If your attorney does not show up for scheduled appointments or bankruptcy hearings, it is a big red flag. Failure to appear at bankruptcy hearings can cause unnecessary delays or result in dismissal of your case.
If your bankruptcy attorney isn't providing you with competent representation, it might be time for a new lawyer. Read on to learn more about the red flags that could indicate it's time to replace your attorney.
The purpose of hiring an attorney is to take the mystery out of the bankruptcy process and make sure that your case proceeds smoothly. It is your attorney's job to inform you of everything that you must do throughout the process. Failure to do so could indicate a lack of knowledge and competence.
Bankruptcy is a specialized area of the law. For example, even a lawyer who regularly handles Chapter 7 bankruptcies might not possess the knowledge and skills necessary for a Chapter 13 matter. Every attorney must represent clients with competency. If your attorney cannot handle your case, you need a new attorney.
If your attorney fails to meet all required deadlines, your case could get dismissed or suffer other adverse consequences.
Your Attorney Doesn't Return Your Calls or Emails. Attorneys are typically busy people. But answering your questions is part of their job. If your attorney repeatedly fails to return your calls or emails and keeps you in the dark about your case, you may be dealing with an incompetent attorney.
Most lawyers will try to understand and meet your expectations. But if your attorney doesn't have the level of competence required to handle your case, then it is time to fire your bankruptcy lawyer.
Timing is very important in BK. Once there is nothing holding up your case, he/she should file right away. However, if he/she waiting on certain things to fall off your timeline, go with that advice. More
You need to insist on a better answer from your attorney. Some of my clients take weeks or even months to get me the documents needed to file their case. Others get me what I need within hours or days. We can't tell if the delay is on your for not getting the documents to your attorney or if the attorney is really busy...
You are entitled to a better answer than "not to worry." Ask your attorney what specifically is holding up your filing. More
This would depend on the particular circumstances of your case. If you provided all of the documents needed and you are looking at a Chapter 7, usually within a couple of days the papers could be prepared. Almost all bankruptcy attorneys use computer software which helps speed up the process.
Essentially, the automatic stay halts repossession actions, foreclosures, garnishments, and collection activity while the filer’s case remains active.
Courts rarely grant Chapter 7 voluntary dismissal motions. Note that if you do submit a motion for voluntary dismissal, you may be barred from refiling for bankruptcy for a minimum of 180 days and a maximum of several years, depending on your circumstances.
However, if the trustee assigned to your case has requested dismissal and you want to push back against that decision, you may be able to successfully defend against the dismissal motion. If the trustee has made their decision based on incorrect information, you can provide evidence countering their assumptions.
However, Chapter 7 cases may also be dismissed by a trustee if a filer doesn’t properly complete and file their schedules, turn over requested documentation, or otherwise comply with mandatory directions provided by either the court or the trustee.
A bankruptcy case is much like any other legal proceeding in that it may be affected by delays, impacted by other legal action, and subject to dismissal. You may be in a position where you’re trying to avoid dismissal of your Chapter 7 bankruptcy case or your Chapter 13 bankruptcy case. If so, there are steps you can take to better ensure ...
If you hope to get your case dismissed, you can file a Motion for Voluntary Dismissal. However, it’s important to understand that this process isn’t straightforward. This bankruptcy process is subject to various conditions and you may run up against barriers that prevent the success of your motion.
A trustee assigned to a Chapter 13 case may dismiss this kind of bankruptcy filing for all the same reasons. However, they may also dismiss a Chapter 13 case if a filer fails to create and submit a repayment plan, or fails to make their scheduled payments.
When an attorney withdraws in the middle of a client's case, that withdrawal is usually categorized as either "mandatory" or "voluntary." In this article, we'll explain the difference between these two processes, along with some examples of each. Keep in mind that with either type of withdrawal, the attorney usually needs to ask for and obtain the court's permission before ending representation of one of the parties in a civil lawsuit in the middle of the case.
the attorney is not competent to continue the representation. the attorney becomes a crucial witness on a contested issue in the case . the attorney discovers that the client is using his services to advance a criminal enterprise. the client is insisting on pursuit of a frivolous position in the case. the attorney has a conflict of interest ...
An Attorney's Voluntary Withdrawal. Where the circumstances permit, but do not require, the attorney to cease representation, the withdrawal is considered voluntary.The circumstances under which an attorney may withdraw mid-case include: there has been a breakdown in the attorney-client relationship that prevents the attorney from effectively ...
the client is refusing to pay the attorney for his or her services in violation of their fee agreement. the client is refusing to follow the attorney's advice. the client is engaged in fraudulent conduct, and.
The attorney must cooperate with the client's new counsel and must hand the client's complete file over as directed. An attorney who has withdrawn from representation has a continuing professional obligation to maintain the confidentiality of all matters within the attorney-client relationship, so for example the attorney cannot become ...
An Attorney's Mandatory Withdrawal. If the circumstances require that the attorney withdraw from representation, the withdrawal is considered mandatory. Situations that could give rise to an attorney's mandatory withdrawal from a case include: the attorney becomes a crucial witness on a contested issue in the case.
You can ask to make four installment payments. The entire fee is due within 120 days after filing.
A completed Chapter 13 bankruptcy stays on your credit report for 7 years after the filing date, or 10 years if the case was not completed to discharge . As a result, filing bankruptcy will initially lower your credit score. How much your credit score will drop depends on how high or low it was before bankruptcy.
As soon as you file your Chapter 7 bankruptcy, you are given a case number and a bankruptcy trustee is assigned to your case. The bankruptcy trustee will oversee your bankruptcy filing, will review your bankruptcy forms, and may ask for additional documents to verify your information.
Protection from your creditors begins immediately after filing for Chapter 7 or Chapter 13 bankruptcy. This is called the automatic stay. Once you file and the automatic stay takes effect, your creditors are not allowed to take collection action against you.
The entire fee is due within 120 days after filing. If the bankruptcy court approves your application, it will grant an Order Approving Payment of Filing Fee in Installments. Your installment payment due dates will be in that order. You must pay all installments on time or your case is at risk of being dismissed.
If you choose to surrender your vehicle, then it will be repossessed and the debt will be discharged in your bankruptcy. Filers with high car payments they can't afford often choose to surrender their car to get out of the debt.
One of the forms you will file with the bankruptcy court is called the Statement of Intention. In this form, you tell the court what you plan to do with property that is securing a debt you owe, like real estate or a vehicle.