Jan 12, 2019 · (1) The things that happen immediately after filing 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.
Aug 20, 2012 · If you only pay some of the attorney fees prior to your Chapter 7 bankruptcy filing, your Chapter 7 bankruptcy attorney cannot legally ask you to pay the rest after your Chapter 7 bankruptcy case is filed. The debt you owe your Chapter 7 bankruptcy lawyer is included as part of the general unsecured non-priority debt. This is the same category your credit card debts, …
Bankruptcy FAQ: After You File. After you file your bankruptcy case, the automatic stay will stop creditor collections. You’ll answer questions about your filing at the meeting of creditors and complete a debt management course. By Cara O'Neill, Attorney. Updated: Oct 11th, 2018.
Feb 09, 2017 · Posted on Feb 9, 2017. 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.
Once filed, a Chapter 7 bankruptcy typically takes about 4 - 6 months to complete. The bankruptcy discharge is granted 3 - 4 months after filing in most cases.Mar 21, 2022
about four to six monthsA Chapter 7 bankruptcy usually takes about four to six months from filing to final discharge, as long as the person who's filing has all their ducks in a row.Feb 8, 2022
two months to two yearsThe amount of time it takes to rebuild your credit after bankruptcy varies by borrower, but it can take from two months to two years for your score to improve. Because of this, it's important to build responsible credit habits and stick to them—even after your score has increased.Jun 16, 2021
Generally speaking, in a Chapter 7 proceeding, the following types of debts are not discharged:Debts that were not listed at the start of the case (or debts for unlisted creditors). ... Most student loans (unless repayment would cause the debtor and their dependents undue hardship)Recent federal, state, and local taxes.More items...•Apr 7, 2021
The automatic stay is why most people file for bankruptcy: to get relief from their debts and their debt collectors. If you only pay some of the attorney fees prior to your Chapter 7 bankruptcy filing, your Chapter 7 bankruptcy attorney cannot legally ask you to pay the rest after your Chapter 7 bankruptcy case is filed.
Chapter 13 bankruptcy cases are repayments plans. You will pay a monthly amount as part of your Chapter 13 plan to the Chapter 13 trustee. Attorney fees here are considered an administrative expense and can be paid as part of the Chapter 13 plan.
The debt you owe your Chapter 7 bankruptcy lawyer is included as part of the general unsecured non-priority debt. This is the same category your credit card debts, medical bills, personal loans, and other unsecured debts are included in. These debts will be discharged if you are eligible for a Chapter 7 discharge.
After you file your case, the court will issue an order called an “automatic stay” instructing your creditors to stop collecting from you. Also, the court will mail a notice of the bankruptcy case to all parties listed in the creditor matrix. You’ll receive a copy, too.
A Chapter 7 bankruptcy can remain on your credit report for up to ten years. If you file for Chapter 13 bankruptcy, the period isn’t quite as long. Expect it to show up for seven years after completing your three- to five-year repayment plan.
What is the automatic stay in bankruptcy? People who file for bankruptcy usually have numerous creditors clamoring to collect whatever assets might be left before another creditor can do so. After filing bankruptcy, the collection frenzy stops so the court can ensure that all creditors divide assets appropriately.
You’ll list the names and addresses of all of your creditors on a document called the creditor matrix or creditor mailing list.
Also, it’s important to keep your credit report free of errors—and it’s easy to do. After your bankruptcy closes, it’s a good idea to check your credit report for accuracy by requesting a free copy from each agency (you’re entitled to a free report every year). You can get yours by visiting AnnualCreditReport.com.
While it’s tempting to believe that the trustee is there to help you, it’s not the case. The more property the trustee recovers for creditors, the more the trustee gets paid.
By contrast, if you’re current on your car payment when you file for bankruptcy, the lender might allow you to continue making the payment—and keep the vehicle—even without signing an agreement. The problem is that without a contract, the lender has the right to take the car at any time.
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.
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.
Almost all bankruptcy attorneys have specialized software that prepares and files your required bankruptcy paperwork with the court. You'll provide your attorney with all of your financial information, such as income, expense, asset, and debt information.
First, you can expect your attorney to tell you whether filing for bankruptcy would be in your best interest. If it is, you should also learn: 1 whether Chapter 7, Chapter 13, or another type will help you achieve your financial goals 2 what you can expect during the bankruptcy process, and 3 whether your case involves any particular difficulties or risks.
Most importantly, if you have any questions, you can expect your attorney to respond to your calls or emails promptly.
After filing for bankruptcy, all debtors must attend a mandatory hearing called the 341 meeting of creditors. But, depending on your case, you (or your attorney) might need to go to additional hearings. Some common types of hearings you can expect your attorney to represent you at: Chapter 13 confirmation hearings.
In general, your retainer agreement (the contract you and your attorney sign) will outline the services your bankruptcy attorney will provide . Your attorney's job is also to provide you with competent advice throughout the bankruptcy process.
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Filing for bankruptcy is a great way to get out from under burdensome debt, and most people feel a tremendous sense of relief when their bankruptcy case is over. But understanding the process and filling out the bankruptcy forms can be daunting. That's where a bankruptcy lawyer comes in. Not only will you receive legal advice, ...
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 and you will not hear from them again.
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.
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.
The trustee’s job is to make sure your case was filed properly, that all of the necessary papers were filed, and to see if there are any assets that are not exempt that he should take control of and sell for the benefit of your creditors.
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.
If you cannot find your social security card, you can go to the Social Security Administration and ask for a replacement. While you are there, ask them to issue a letter to verify your social security number. They will do this for you, but you have to ask.
The simplest way to find out about other payment arrangements is by contacting the bankruptcy lawyer directly. Talk to a Bankruptcy Lawyer.
Paying Chapter 13 Attorneys' Fees in Installments. In a Chapter 13 case, you'll likely pay some of the attorneys' fees up front, but not the entire amount. The attorney will likely take the remainder through your Chapter 13 repayment plan payments (the trustee pays the attorney from your monthly plan payment).
One of the biggest benefits of filing bankruptcy is the automatic stay that goes into effect as soon as the case is filed. It means that your creditors (those you owe a debt) are not allowed to keep asking you for money.
Bankruptcy gives you a fresh start by allowing you to use your hard earned money on necessities, including living expenses, groceries, gas, or health care costs. Generally speaking, you don’t have to keep making payments on a debt once your Chapter 7 bankruptcy has been filed unless the debt is tied to specific property, like a car loan or a mortgage. If you have student loans or other non-dischargeable debts, make sure you start making payments again once your discharge has been entered, even if you fell behind or stopped making payments before filing.
Your living expenses include things like rent, utilities, cell phone plan, and car insurance. These are all bills you pay for an ongoing service, and not debts you owed when your case was filed. You have to continue to pay these expenses even after your bankruptcy case has been filed.
If you’re ready to walk away from your car and give it back, you can stop making payments on your lease or loan immediately after filing your case. The bank won’t be allowed to ask you to pay the debt, which will be discharged as part of your Chapter 7 bankruptcy.
Credit cards are the classic example of unsecured debt. If you stop paying them, there is no automatic right for the bank to take something from you, like there is with a car loan or mortgage. Once your bankruptcy has been filed, you should immediately stop making credit card payments (if you haven’t already).
Tax debts, student loans and other non-dischargeable obligations. Some debts simply can’t be discharged in bankruptcy. Since you will continue to be responsible for paying these debts (including 401k loans), you should continue to pay them throughout your case and even after your discharge has been entered.
If your wages were getting garnished for child support when your case is filed, that garnishment will continue. The Bankruptcy Code makes a special exception for these obligations. You still have to list the debt, but you should not expect any breathing room when it comes to making payments.
If you file a Chapter 7 bankruptcy petition and it is a “no asset” case, your spending after filing should reflect what you stated on your schedules. If either your income or your expenses change considerably while still in Chapter 7, again, you should consult with your attorney.
Since Chapter 7 is over in four- to six-months, it might be better to wait until you receive your discharge before travelling for an extended period of time..
If you file a Chapter 13 bankruptcy petition and your case is confirmed, you have shown the court and the Trustee that you have sufficient income to pay your ongoing expenses and also repay your creditors in part. The money you make after the filing date should first be used to make your monthly plan payment to the Trustee. After that, your money is yours to do with as you please, up to a point: if you need to make a large purchase such as a car or a house, you might need the court’s permission. Consult with your attorney.
The look back period also applies if you sell or give away any of your assets just prior to filing. The Trustee will ask you if you have done so, and has the power to “claw back” those assets if so. This includes transfers or cash to property to your friends or relatives.