what to expect after taking paper work to lawyer to file chapter 7

After your attorney files a Chapter 7 Bankruptcy, the court clerk sends out notices to each of the creditors you list in your petition. These notices inform the creditor that a bankruptcy has been filed, and its right to be involved in the process.

Full Answer

What happens after I file Chapter 7 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. The trustee will also conduct the meeting of creditors .

What happens after you file bankruptcy protection?

After you file for bankruptcy protection, your creditors can't call you, or try to collect payment from you for medical bills, credit card debts, personal loans, unsecured debts, or other types of debt. Wage garnishments must also stop immediately after filing for personal bankruptcy.

What happens at a bankruptcy hearing?

This is a hearing held by the bankruptcy trustee, and is more-or-less an interview with you under oath about your assets, debts, and financial circumstances. You will receive a notice that describes when and where you should attend the hearing. Your bankruptcy attorney or a representative from his firm will be with you the whole time.

Can I pay my Chapter 7 bankruptcy filing fee in installments?

If you can't pay the entire Chapter 7 bankruptcy filing fee and you don't qualify for a fee waiver, then you can apply to pay the filing fee in installments. You can ask to make four installment payments.

How long does it take from start to finish on Chapter 7?

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.

What happens after Chapter 7 is filed?

A chapter 7 bankruptcy case does not involve the filing of a plan of repayment as in chapter 13. Instead, the bankruptcy trustee gathers and sells the debtor's nonexempt assets and uses the proceeds of such assets to pay holders of claims (creditors) in accordance with the provisions of the Bankruptcy Code.

How long does it take to get discharge letter after Chapter 7?

Once filed, a Chapter 7 bankruptcy typically takes about 4 - 6 months to complete. The bankruptcy discharge order that provides you with permanent debt relief is granted 3 - 4 months after the case is filed.

When would a dismissal of a Chapter 7 petition be likely?

Usually a chapter 7 bankruptcy is dismissed if the client didn't tell the lawyer that they owned something valuable, like a car, house or business.

What is the average credit score after Chapter 7?

The average credit score after bankruptcy is about 530, based on VantageScore data. In general, bankruptcy can cause a person's credit score to drop between 150 points and 240 points. You can check out WalletHub's credit score simulator to get a better idea of how much your score will change due to bankruptcy.

Can a Chapter 7 be denied?

The rejection or denial of a Chapter 7 bankruptcy case is very unusual, but there are reasons why a Chapter 7 bankruptcy case can be denied. Many denials are due to a lack of attention to detail on the part of the attorney, errors made on petitions or fraud itself.

Can I spend money after filing Chapter 7?

Frivolous spending after you file could put your case in jeopardy. Spending money willy-nilly after you file for bankruptcy could appear like fraud and upend your court ruling.

How much will credit score increase after Chapter 7 falls off?

How Much Will Your Credit Score Increase After Chapter 7 Falls Off Your Credit Report? When a chapter 7 falls off your report, you can expect a boost of around 50–150 points on your credit score.

What happens if your income increases during Chapter 7?

An Increase in Income During Chapter 7 The bankruptcy trustee will eliminate most if not all of your debts, and possibly sell some of your assets to pay debts. This process is appropriate if you have an income but cannot cover all of your necessary expenses or can pay the basics, yet not pay down your debts.

What do you lose when you file Chapter 7?

A Chapter 7 bankruptcy will generally discharge your unsecured debts, such as credit card debt, medical bills and unsecured personal loans. The court will discharge these debts at the end of the process, generally about four to six months after you start.

What can you not do after filing bankruptcies?

After you file for bankruptcy protection, your creditors can't call you, or try to collect payment from you for medical bills, credit card debts, personal loans, unsecured debts, or other types of debt.

When can I stop using credit cards before filing Chapter 7?

Let's Summarize... If possible, 90 days before filing is the time to stop using your credit cards once you know that you're going to file Chapter 7 bankruptcy. You can't max out credit cards before bankruptcy just because you're about to file.

What happens to creditors after Chapter 7?

These may challenge the dischargeability of your debt or accuse you of fraud. It’s important to have a knowledgeable attorney on your side at the meeting of creditors and other hearings to face any adversary actions that are filed. Otherwise, you may not be able to discharge all of your debt, or you may be unable to defend yourself against accusations of dishonesty.

How to understand Chapter 7 bankruptcy?

Understanding Chapter 7 bankruptcy can help you make an informed decision about whether filing is the best option for your situation. Getting answers to questions you may have about the process can be an important factor in choosing how to move forward with your finances. It’s an opportunity to learn the facts while clearing up misconceptions about how the process works. While the following questions may help shed light on basic details, talking with an experienced bankruptcy attorney should help you learn other aspects about the process.

What happens if a bankruptcy trustee files a notice of no assets?

The bankruptcy trustee will examine the assets of the case and determine the amount of non-exempt property . If there is no non-exempt property in the bankruptcy case , the trustee will file a “Notice of No Assets” and discharge the case. However, creditors and the trustee can challenge bankruptcy exemptions. For example, if a debtor claims a vehicle as exempt and the trustee doesn’t agree, the trustee can challenge the exemption.

What happens at a meeting of creditors?

At the meeting of creditors the bankruptcy trustee will once again examine the bankruptcy petition and confirm with information with the debtor. If the debtor has made a mistake, forgotten to include information or needs to make a change, they can mention it at this meeting. However, it may be better to mention changes and errors to the bankruptcy attorney before attending the meeting of creditors so that changes can be made quickly. It’s important to note that the meeting of creditors is usually a quick process, only taking a few minutes.

What meeting do you have to attend after filing bankruptcy?

After your case is filed, you are required to attend the 341 meeting of creditors. The Chapter 7 bankruptcy trustee presides over the meeting. When your paperwork is in order, this meeting generally does not last very long. Creditors can ask you questions during these meetings if they believe you are hiding assets. Generally speaking, they do not show up. The trustee asks you pertinent questions about your paperwork, and the meeting is generally over in 30 minutes.

What is the 341 meeting in Chapter 7?

An important meeting during Chapter 7 bankruptcy proceedings includes the 341 meeting, also known as meeting of creditors or trustee’s meeting. As long as you provide honest and accurate details about your finances you should be fine. Some debtors are known to get nervous about the meeting, but having experienced legal representation can help you get a general idea of what to expect. The good news is the process may not be as difficult as you think, yet there are a few things you can do to help make things easier.

How long does it take to pay off debt?

Simple: if you’ve gathered up your debts and determined that there’s no way you’ll be able to pay off your debts in seven to ten years, then you may want to consider filing for bankruptcy.

How long does bankruptcy last after Chapter 7?

However, Chapter 7 bankruptcy reports on your credit for ten years, and any potential creditors within that time period will see that you filed for bankruptcy.

What happens after filing bankruptcy?

After you file your petition, you will experience an immediate benefit from the bankruptcy process – the automatic stay. This is a court order that goes into effect and halts all attempts by creditors to collect your debts. Your creditors will receive notification that you filed for bankruptcy, and they will have to stop any and all of the following:

What is the final stage of bankruptcy?

The final stage of your bankruptcy case is the discharge of your qualified debts. If the trustee saw no issues with your case, and you completed all of the requirements, the bankruptcy judge will issue an order that ends your obligation to pay certain debts. Such debts can include: Credit cards. Medical bills.

What are the steps to bankruptcy?

The final stage of your bankruptcy case is the discharge of your qualified debts. If the trustee saw no issues with your case, and you completed all of the requirements, the bankruptcy judge will issue an order that ends your obligation to pay certain debts. Such debts can include: 1 Credit cards 2 Medical bills 3 Unsecured loans 4 Loans from friends or family 5 Business debts for sole proprietors 6 Certain tax debts 7 Civil judgments (with some exceptions) 8 Past due rent 9 Unpaid utility bills

Can alimony be doubled in Chapter 7?

Alimony and child support. Insurance. Wildcard exemption. Spouses can double the standard exemptions if they file for Chapter 7 together. An attorney can help you apply for these exemptions in the way that protects as much property as possible, and some Chapter 7 filers do not lose any property or assets at all.

Can spouses file Chapter 7 together?

There are exemptions available in Georgia for the following and more: Spouses can double the standard exemptions if they file for Chapter 7 together.

Can you give up your property in Chapter 7?

However, you might have to give up some property or assets in exchange.

What happens during Chapter 7?

This is a general overview of what happens during a Chapter 7 case. Filing for bankruptcy is complicated, and the consequences of not abiding by the rules of the bankruptcy code, or making mistakes or omissions in your filing can be very detrimental.

What do you need to do before filing for bankruptcy?

The last thing you must do before receiving your discharge is a personal financial management course. Anyone who files a bankruptcy must complete both a pre-petition credit counseling and a post-petition financial management course. The bankruptcy court will not grant a discharge unless you have completed this requirement.

What is Chapter 7 bankruptcy?

Chapter 7 is the most common bankruptcy to get relief from creditors. There are so many important issues that happen in a bankruptcy people’s life. The good important thing to advise people who filed for bankruptcy chapter 7 should understand how to rebuild their financial life in the future.

What is Chapter 7 discharge?

A discharge makes the debtors free from any personal liability for debts and legally ceases the creditors owed those debts from collecting forcefully. The chapter 7 discharge has some conditions like the debtors has to take part in the creditor meeting, get financial management training and counseling’s to make sure they are not able to pay the creditors according to very bad financial condition.

What happens to your credit after bankruptcy?

After bankruptcy, your credit score will have a hit and you need to try a little to improve your credit history. It is important to avoid unnecessary spending to make you far away from any other bankruptcy.

Can you sell your home under chapter 7?

It is important to know that your home is exempt or not. Under chapter 7 most of the debts are discharged and the trustee can only sell your non-exempt property and pay the unsecured creditors. However, your home is non-exempt equity, it is sure to believe that you are losing your home.

Can you get a dollar from bankruptcy discharge?

Discharge from court and credit not get a dollar from you. In case you face any wrong doing from the creditor, bankruptcy discharge letter paper work to show and submit any moment, some may go when case no, filing date and discharge date, hire an attorney to deter your creditor

What happens when you file Chapter 7?

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.

How long does it take to pay Chapter 7 bankruptcy?

You can ask to make four installment payments. The entire fee is due within 120 days after filing.

How long does a Chapter 13 bankruptcy stay on your credit report?

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.

What is the term for protection from creditors after bankruptcy?

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.

How long does it take to pay bankruptcy fees?

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.

What is the form that you file for bankruptcy?

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.

How many points can you get from bankruptcy?

Generally, a decrease between 100 to 200 points can be expected. The good news is that you can begin rebuilding your credit as soon as your bankruptcy discharge is entered. It's possible to have a better score within 1–2 years of filing.

How long is a Chapter 7 bankruptcy petition?

Filing bankruptcy is a very document intensive process. This shouldn’t be a surprise, as the petition the filer submits to the bankruptcy court can be up to 100 pages long. Since preparing for a Chapter 7 bankruptcy can be stressful, scary, and confusing, it can be helpful to use checklists to keep yourself on track.

How long before filing Chapter 7 bankruptcy do you have to get pay stubs?

Go back at least 60 days before you file your Chapter 7 bankruptcy petition, 6-7 months is preferable. If you weren’t employed, you don’t need pay stubs. But if you had more than one employer, be sure to get pay stubs from each employer.

What is Upsolve for bankruptcy?

Upsolve is a nonprofit tool that helps you file bankruptcy for free. Think TurboTax for bankruptcy. Get free education, customer support, and community. Featured in Forbes 4x and funded by institutions like Harvard University so we'll never ask you for a credit card. Explore our free tool

How long does it take to get credit counseling after filing bankruptcy?

You’ll need two credit counseling courses when you file bankruptcy. Both must be through a provider approved by the U.S. Trustee’s office. Chapter 7 and Chapter 13 bankruptcy laws require you to take a credit counseling course within 180 days (6 months) before filing a bankruptcy petition. You’ll get a credit counseling certificate that expires in 180 days, and it must be filed within 14 days of filing your bankruptcy petition.

What happens if you make too much money in bankruptcy?

If you make too much, you might have to file for Chapter 13 bankruptcy and complete a repayment plan before getting your discharge. Profit and loss statements: If you have a business or farm, produce profit and loss statements from the past year, gross receipts, and proof of necessary business expenses.

What is a bankruptcy document?

Bankruptcy documents are sources of information and used as evidence to help fill in the forms. Chapter 7 bankruptcy forms are required by law to be used for your Chapter 7 bankruptcy case. You can find all the forms and instructions for free on the United States Courts ’ website. Keep on reading for a simple Chapter 7 document checklist.

How long do you have to file taxes before bankruptcy?

Tax returns: Assuming you were required to file returns, you will need the tax returns you filed in for the two calendar years before your bankruptcy case is filed. If you no longer have access to copies of your tax returns, you can request a tax return transcript from the IRS.

What happens if you file Chapter 7 bankruptcy?

The End of the Bankruptcy Process. In rare cases, the trustee will need to liquidate property or resolve bankruptcy litigation. If you’ve received a discharge through Chapter 7, however, your bankruptcy proceeding is most likely complete . The trustee will submit a final report, and the court will follow this with a final decree.

When is Chapter 7 bankruptcy?

We look forward to answering your questions and addressing your concerns during your no-cost consultation. Categories: Chapter 7. August 25, 2020.

How long does it take for a trustee to file a final decree?

The trustee will submit a final report, and the court will follow this with a final decree. This finalization will generally occur 4-6 months after filing your petition. On your credit report, discharged debts should be marked as discharged.

What is the right to dispute information in bankruptcy?

You have the right to dispute information and compel agencies to make corrections as needed. Establish a realistic budget.

Can you plan for life after bankruptcy?

However, just like you need to prepare for bankruptcy, you must also plan for life after bankruptcy. With thoughtful preparation and intentional financial decisions, you can slowly build solid financial foundations that clear the way toward a prosperous future.

Does bankruptcy discharge debt?

Bankruptcy will not discharge every type of debt. Without the unsecured debt on your shoulders, however, you will likely have an easier time making payments on secured debt. As your credit improves, you might be able to access new options, such as consolidation loans with better rates and terms. Rebuild your credit.

William Joseph Kopp Jr

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

Carl H Starrett II

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...

Dorothy Ann Bartholomew

You are entitled to a better answer than "not to worry." Ask your attorney what specifically is holding up your filing. More

David Earl Phillips

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.