What is Chapter 7 Bankruptcy?

Chapter 7 Bankruptcy  – all debts are eliminated – you pay nothing back to your creditors.   

•   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

I spend the time to put my clients at ease with knowing the basic steps and the entire bankruptcy process.   

Understanding is key for Debtors.    You need to be familiar with 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.  I take the necessary time with all my clients.

Overview:   Chapter 7 Bankruptcy Process & Timeframe 

• • Clients set up Initial Bankruptcy Attorney Consult  (free BK consult). – Research the attorney; success rate – are they Board Certified in Bankruptcy Law?  Do I feel comfortable with the attorney?
    • Bankruptcy attorney should assess your financial situation.
    • Attorney should carefully review and discuss your preliminary documents and information.
    • Attorney should  recommend 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.
    • Decision is reached to file Chapter 7 Bankruptcy.
    • A representation agreement should be signed by you and agreed upon and explained to you by your attorney (prior to signing).
    • 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 there 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 – you are never passed on to someone else.
    • 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 credit counseling on-line course is completed before a bankruptcy discharge can be granted.
• Discharge – Approximately 60 days from the Meeting of Creditors, your attorney is sent a Notice of Discharge. I immediately (same day) send my clients this notice.

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

• • Your assets such as your 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 saving.

Fresh Start

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

I commit to my clients that they will feel confident in their decision and understanding of Chapter 7 Bankruptcy after we meet.

Call me today for a free bankruptcy consult….(201) 446-5904

Ralph A. Ferro, Jr., Esq. – NJ Bankruptcy Lawyer