Chapter 7 Bankruptcy Process
Generally, the entire Chapter 7 bankruptcy process takes approximately four to six months from filing until discharge. The filing fee for a Chapter 7 bankruptcy is $299. In addition to the filing fee, you must complete a credit counseling course prior to filing which costs $49 per filing (this fee may be waived in certain situations) and a financial management course which costs $16 per person.
The typical Chapter 7 bankruptcy process includes:
Initial Consultation With A Bankruptcy Attorney
To begin a bankruptcy filing, it is strongly recommended that you meet with an attorney with specific bankruptcy experience to explain in more detail the rules, guidelines, qualifications and process of Chapter 7 bankruptcy as it applies to your specific situation.
Completion of Necessary Forms
We have developed worksheets for our clients to complete that will enable us to analyze their financial situation and complete the bankruptcy petition and schedules. You should be prepared to list your debts and assets and provide proof of your income for the six months prior to filing your case.
Credit Counseling
The 2005 bankruptcy laws now require that you file a certificate showing you have completed credit counseling with an agency approved by the United States Trustee. We have partnered with Hummingbird Credit Counseling so that you do not have to make payment arrangements or slow down the process by mailing payment to the credit counseling service. To further assist our clients, we have a computer available in our office for our clients to use which enables us to answer any questions which may arise during the process.
Review, Sign and File Petition and Schedules
Once you have completed and returned the worksheets we provide you, we will prepare all of the materials necessary for filing. When the documents are prepared, you will come to our office to review and sign the Petition and Schedules. Once you have signed everything, we will file the petition with the Bankruptcy Court.
Financial Management Course
Once your case is filed, the Financial Management Course Certificate must be filed within 45 days after the first date set for the meeting of creditors. We recommend that this course be completed immediately after filing. We have partnered with AAA Personal Finance to provide this course for our clients. This course is taken entirely on the internet and can either be done by the debtor on their own or they may come to our office and use our computer to complete the course.
341 Meeting of Creditors
Shortly after you file bankruptcy, you and all the creditors you list will receive a notice that a “creditor meeting” has been scheduled. This meeting typically occurs three to four weeks after your case is filed. A bankruptcy trustee will be assigned to oversee your case and conduct this meeting and will ask you questions, under oath, about your bankruptcy and the information contained in your schedules. Creditors rarely attend this meeting, but if they do, they may question you as well.
Discharge
The final stage of the bankruptcy process is discharge. This typically occurs three to four months after the initial filing. The court eliminates all of your debt, except:
- Debts that automatically survive bankruptcy such as child support, most tax debts, student loans, etc. (unless ruled otherwise by the court)
- Debts the court has declared non-dischargeable due to fraud.
To learn more about what bankruptcy options are available to you, contact bankruptcy attorney Jason Fauss online or call (314) 291-8899 to arrange a FREE consultation. |
