Chapter 7 and Chapter 13 Bankruptcy Procedures
The 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 roughly $299. In addition to the filing fee, you must complete a credit counseling course prior to filing, which costs approximately $49 per filing (this fee may be waived in certain situations), and a financial management course costs approximately $16 per person.
The Typical Chapter 7 Bankruptcy Process Includes:
- Initial Consultation with a Bankruptcy Attorney
- Completion of Necessary Forms
- Pre-Petition Credit Counseling
- Petition and Schedules Review, Signing, and Filing
- Financial Management Course
- 341 Meeting of Creditors
- Discharge
Initial Consultation
It is strongly recommended that you consult with an experienced bankruptcy attorney who can explain the rules, guidelines, qualifications, and process of Chapter 7 bankruptcy in more detail as it applies to your specific situation.
Completion of Forms
To file for bankruptcy, you will need to complete the bankruptcy petition and schedules. It is essential to 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.
Petition and Schedules Review, Signing, and Filing
Attorney Marie Allen JD, LLM, MBA, will prepare all of the materials necessary for filing. When the documents are prepared, you will come to the office to review and sign the petition and the schedules. Once you have signed everything, the petition will be filed 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. This course is taken entirely on the internet and can be completed by the debtor on their schedule.
341 Meeting of Creditors
Shortly after you file for Chapter 13 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, conduct this meeting, and ask you questions, under oath, about your bankruptcy and the information 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.
The Chapter 13 Bankruptcy Process7
The Chapter 13 bankruptcy process generally takes from 3-5 years. The filing fee for Chapter 13 bankruptcy is $274. In addition to the filing fee, you must complete a credit counseling course prior to filing, which costs $49 per filing, and a financial management course, which costs $16 per person.
Typical Chapter 13 Bankruptcy Process Includes:
- Initial Consultation With a Bankruptcy Attorney
- Completion of Necessary Forms
- Pre-Petition Credit Counseling
- Petition and Schedules Review, Signing, and Filing
- Financial Management Course
- 341 Meeting of Creditors
- Chapter 13 Repayment Plan
- Discharge
Initial Consultation
It is strongly advised that you consult with an experienced bankruptcy attorney who can explain the rules, guidelines, qualifications, and process of Chapter 13 bankruptcy in more detail as they apply to your particular situation.
Completion of Forms
To file for bankruptcy, you will need to complete the bankruptcy petition and schedules. It is essential to 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.
Petition and Schedules Review, Signing, and Filing
Attorney Marie Allen JD, LLM, MBA, will prepare all of the materials necessary for filing. When the documents are prepared, you will come to the office to review and sign the petition and the schedules. Once you have signed everything, the petition will be filed 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. This course is taken entirely on the internet and can be completed by the debtor on their schedule.
341 Meeting of Creditors
Shortly after you file for Chapter 13 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, conduct this meeting, and ask you questions, under oath, about your bankruptcy and the information in your schedules. Creditors rarely attend this meeting, but if they do, they may question you as well.
Chapter 13 Repayment Plan
One of the most critical forms filed in a Chapter 13 bankruptcy is the repayment plan. This plan details how you will repay the debt you declare under Chapter 13. Your first payment will be due to the Chapter 13 trustee 30 days after filing your case. Payments are made to the bankruptcy trustee, a person appointed by the court to manage your case. The trustee then distributes the money to your creditors. You can request the bankruptcy court to order automatic deductions from your wages and send them directly to the trustee’s office.
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.
Get in Touch To Learn More
Bankruptcy lawyer Marie Allen, JD, LLM, MBA, will determine how the law applies to your specific situation. To schedule your consultation, please contact us today.