What Happens After You File For Bankruptcy?
You may become numb after filing that you are bankrupt and you become unsure of what may happen next.Filing for bankruptcy is a difficult but sometimes necessary decision to make. It should however not be overwhelming to steer for bankruptcy.Read on to learn what happens after you file for bankruptcy so that you can feel prepared for the future.
Forms of bankruptcy
The form of bankruptcy either chapter 7 or chapter 13 can determine what will happen after filing for bankruptcy, chapter 7 bankruptcy is for individuals with little to no income or assets debts whereas chapter 13 bankruptcy is for individuals with the financial or property means to pay back part of their debts to as reorganization bankruptcy. The primary difference between the two bankruptcy is whether or not people have the ability to keep their property; chapter 7 settles all benefits and chapter 13 make people keep their belongings and plan how they are going to be paying off the debt.
You case is given a number and a jury
Shortly after filing for the bankruptcy case, it will be given a trustee and a judge. It is important that you keep your case number in your finger-tips after getting it because You will be able to give it to any creditors who come knocking-they won’t be able to hound you the moment that your bankruptcy filing becomes a case due to the law of automatic stay.Throughout the extent of your case, creditors, and other financial institutions won’t be able to contact you because of automatic stay; they will have to speak with the court itself if they want to have a conversation. Your trustee will be asking you several questions at the times of your court meetings. Your lawyer at this point will be essential after you file for bankruptcy.
The date for the meeting of your creditors is set
Shortly after filing for bankruptcy and receiving the meeting, there will be the setting for the meeting of all your creditors.The creditors meeting will give the trustee a chance to walk you through a series of questions.
Your attorney steps in
In the temporary between your filing and first court appearance, your attorney will take the reins for a while. Your lawyer will make sure that any other lawyer who is connected to your situation is aware of the case as well as appraising everything you have and if you are filing a Chapter 7 bankruptcy, this property may be sold to pay back creditors. You will also be briefed about the questions that the trustee was asking during the creditors meeting.
You go to a creditors meeting
A lot of the questions that you will be asked in the creditors meeting will have been briefed by your lawyer.
The case can be postponed
When your trustee needs more documents from you and your lawyer, your case can be postponed.
You acquire a release
You will receive a set free notice within sixty days once your case is closed and your creditors, employers, and other attorneys involved in lawsuits will be notified immediately via mail.
You will have a new start
After you obtain a discharge; it’s time to breathe easy; you can rebuild credit and take control of a new financial future.
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