About The Bankruptcy Process
When making financial decisions during the process, you should consult your attorney. In
particular there are three items worth mentioning. Under bankruptcy law, certain
luxury purchases over $1000 within 60 days of the bankruptcy filing are presumed
nondischargeable.
Under bankruptcy law, cash advances agregating $1000 within 60 days of the bankruptcy
filing are presumed nondischargeable. Debts involving materially false financial
statements are nondischargeable under certain circumstances.
If you file the bankruptcy yourself, you must fill out the forms. There are several forms.
There could be between 30 and 60 pages in your petition, schedule and other papers filed
at the time of your bankruptcy. You must follow the local and
federal bankruptcy court rules in completing the forms. Preparing these forms requires an
understanding of both bankruptcy law and local state law in order to enter the information
correctly and accurately. The forms have to be typed and a certain number of copies must
be included with the filing. Today, most attorneys use a computer system to prepare these
forms because of there complexity and
voluminous nature.
About 30 to 40 days after you file the bankruptcy you will have to attend a hearing
presided over by the bankruptcy trustee. This hearing is called the First Meeting of
Creditors. At this hearing the trustee will ask questions under oath regarding the content
of your bankruptcy papers, assets, debts and other matters. After the trustee is done,
your creditors will be permitted to question you. Do not worry,
your attorney will be there to represent you and your attorney will help you prepare for
the hearing. Sometimes, after your hearing is over, various creditors will approach you to
discuss the status of secured property or the your desire to retain a credit card. Your
attorney will negotiate with them, with your knowledge and approval.
After this hearing you will normally not need to return to court. However, if a creditor
files a motion or an adversary action, most likely you will have to return to court. This
is the exception and only your attorney can determine if this is likely
to happen.
Under normal circumstances, the bankruptcy court will automatically issue the discharge 60
to 75 days after the First Meeting of Creditors.
You can reestablish credit though and be back in "A" credit two years after the
discharge of Bankruptcy. The bankruptcy is a judgment and will be listed for a period of
up to 10 years after the discharge. You must wait 6 years to file again or if your
bankruptcy was dismissed you must usually wait for 180 days to refile.
Disclaimer:
This information deals with Chapter 7 consumer bankruptcy. Each state has its
own bankruptcy laws, so you need to check with your state for details.
Information dealing with Chapter 13 bankruptcy and consumer debt restructuring is not
discussed in the above FAQs. The information contained in the following FAQs is provided
for general information purposes only and is not intended to be a legal opinion nor legal
advice nor is it intended to be a complete discussion of all the issues related to the
area of Chapter 7 consumer bankruptcy. Every individual's factual situation is different
and you should seek independent legal advice regarding specific information.
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Bankruptcy
Alternatives to Filing Bankruptcy
How to Avoid Foreclosure
Chapter 7 Bankruptcy
Bankruptcy and My Bills
Bankruptcy and Bill Collectors
Your Property and Assets
Your House and Car
About the Process
Bankruptcy Questions & Answers |
