What is Chapter 7 Bankruptcy?

What is Chapter 7 Bankruptcy Process

What is  Chapter 7 Bankruptcy?    1st and foremost:   From your initial meeting with your attorney until discharge, you need to be comfortable with filing Chapter 7, the bankruptcy process (including the 341a Meeting of Creditors) and have trust in your bankruptcy attorney

You can be at ease when you know the basic steps and the entire bankruptcy process.   Understanding is key for Debtors.    As a result, you understand the process and what happens next after you file your initial Chapter 7 bankruptcy petition.    Experienced bankruptcy attorneys know a client must feel confident and comfortable from the start of the case and beyond.

Consider 7 Bankruptcy.   What’s Next?

Brief Overview:   Bankruptcy Process & Timeframe Filing Chapter 7 Bankruptcy

Research and Set up Initial Bankruptcy Attorney Consult  (free BK consult).

    • Bankruptcy attorney reviews and discusses your preliminary documents and information.
    • Your attorney recommends whether Chapter 7 is best for your particular financial situation.
    • Detailed documents are provided to your attorney containing your debts, creditors, assets, expenses and income.
    • Petition is drafted
    • Before the petition is filed by your bankruptcy lawyer,  one on-line credit counseling session is completed.  This credit counseling session is quite basic.
    • Petition is reviewed and finalized with your attorney.
    • Debtor signs the petition

Bankruptcy Attorney Files your Petition with the Bankruptcy Court.

    • Immediately:
      • There is a stay or hold on all creditor collections
      • No creditors can contact you or take action to collect any outstanding debts
      • Pending foreclosure proceedings are frozen
      • Wage garnishments stop

341a Meeting of Creditors

      • Occurs approximately 30 days after your bankruptcy petition is filed.
      • You, your attorney and an appointed Trustee have a brief interview/meeting to discuss your case.
      • It should be noted, creditors can attend the 341a Meeting to express their concerns.
      • If you honestly and to the best of your knowledge answered bankruptcy petition questions, the process goes smoothly.
      • Your attorney reviews the case thoroughly.   Your attorney works with you throughout the process ensuring the meeting of creditors goes smoothly.
      • Usually, the 341a meeting takes not more than 20 minutes.
      • However, it is so important to hire an experienced NJ Bankruptcy attorney.  They are prepared, thoroughly knowledgeable of your case, reviews your case and works with you so their are no delays.  You should not hire an attorney that does not personally handle your entire case.   I handle all my bankruptcy cases personally from start to finish.
      • Following the 341a meeting of creditors, any creditors or party of interest have the option of objecting to your bankruptcy discharge.
        • Reasons for objections are:  you did not tell the truth on your petition; failed to disclose an asset; failed to disclose a pending case in your bankruptcy petition.

Final creditor counseling online course is completed before a bankruptcy discharge is granted.

Discharge – After a waiting period of approximately 60 days, your attorney is sent a Notice of Discharge.    Your attorney provides this notice to you with instructions and explanations.

Success:   you are no longer required to pay any of your debts listed in the bankruptcy petition.

    • Your assets such as you home, bank accounts and personal property (clothing, furniture, autos)  are not eligible to be liquidated since there is an amount you can exclude from the bankruptcy.
    • Retirement accounts are not affected – they are yours to keep and continue.

Fresh Start

    • Heavy debt burdens are lifted.
    • You are energized to move forward.  There is a brighter future when eliminating your overwhelming debts.

What is Chapter 7 Bankruptcy?     I ensure that you feel confident and understand what Chapter 7 entails after we meet.

Call me today for a free bankruptcy consult….