Making the decision to file for bankruptcy protection is only the first step, albeit a very important decision. You have probably researched the internet, talked with friends and family, and I would hope taken the most important step to speak with an experienced bankruptcy attorney. There is a lot of misinformation floating around the internet and certainly friends and family are not the best source for bankruptcy advice. A bankruptcy consultation, and in my case a free consultation, will give you accurate information and legal reasoning related to your specific situation and allow you to then make an informed decision.
OK you have made your decision, now what happens? In most cases, if time allows, some level of pre-bankruptcy planning is appropriate. Your attorney will advise you in this very complex area of the law and this advice could make or break your case from a financial point of view. At the same time pre-filing issues are addressed there is an extensive information gathering process taking place. You supplied basic information at your initial bankruptcy consult, but now the real work begins. Income and expense information, information as to your assets and liabilities, and a myriad of other information is needed to complete your petition, schedules and statements. The main source of this information is you and gathering the required information can be a daunting although absolutely necessary task. You will be affirming under penalty of perjury as to the accuracy of the information contained in your documentation, so now is the time to get it right.
During the information gathering process, in all likelihood additional legal challenges may come to life necessitating additional consultations with your attorney. This is all part of the bankruptcy process and one of the reasons retaining experienced legal representation is so important to achieving the best possible outcome in your bankruptcy case.
Your information has been gathered and your petition, schedules and statements completed and you are ready to file. Not so fast, before you file you must take a credit counseling course from an approved provider. This course may be taken online or via the telephone, but it must be completed within the six months prior to filing your case. You take the course and have received your certificate now your case can be filed.
Approximately 30-45 days after your case is filed a Meeting of Creditors, also called a 341 hearing, is scheduled. This hearing will be held before the Trustee assigned to your case and you will be placed under oath. The Trustee will ask you a series of questions that he/she asks of all Petitioners and then may ask you about some specific aspects of your case. Although unlikely, a creditor has the right to appear at the hearing and question you as well. The 341 usually lasts about five minutes and in most cases is the only time you will appear during the bankruptcy process.
You are not done yet. After your case is filed you must take a financial management course again from an approved provider via the internet or telephone. Now that you have complied with the Code requirements the next step is for you to receive your discharge. In a Chapter 7 case, barring any objections, you will receive the discharge in approximately 60-90 days. In a Chapter 13, you do not receive a discharge until you have completed your plan.
The discharge is the goal in any bankruptcy case. Once you receive the discharge your case will then be closed. It took an awful lot of work to get here and there may have been bumps in the road, but at this point you may take advantage of the financial fresh start filing for bankruptcy protection affords you.
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