Here are the steps to a Chapter 7 bankruptcy. Most of the time, as a bankruptcy filer, most steps happen without any action on your part. An experienced bankruptcy attorney will help you through the process without any hassle or stress on your part. However, there are times that you will need to cooperate with your bankruptcy lawyer to make sure the process flows smoothly in order for you to get the debt relief you need.

1.) Getting Pre-Bankruptcy Credit Counseling

When you file for a Chapter 7 bankruptcy, you will need to get credit counseling from an approved agency. You should not have to worry about finding an approved agency for your credit counseling. Talk with your bankruptcy lawyer first, and they will see what you need to do and find you an approved agency when the time is right.

2.) Filing a Bankruptcy Petition

You will need to fill out the forms for your bankruptcy case which includes detailed information about your income, expenses, what you claim as being exempt, and other information that the bankruptcy court requires. This part of the bankruptcy is most likely the hardest part of your bankruptcy. Your bankruptcy attorney will advise you and help you fill out all the necessary documents.

3.) Receiving the Automatic Stay

Immediately after filing your bankruptcy petition, the Automatic Stay starts working for you. The Automatic Stay will prevent your creditors from taking any more collection actions against you like foreclosing on your home, repossessing your car, suing you, and harassing you. However, the Automatic Stay only is in effect until someone succeeds in filing a Motion to Lift Stay. A Motion to Lift Stay is an objection to the court ordered Automatic Stay which a creditor can file if they believe the Automatic Stay is not warranted in your case.

4. Meeting the Bankruptcy Trustee

The bankruptcy courts will assign you with a bankruptcy trustee to oversee your case. The bankruptcy trustee will try to maximize the amount of assets and property they can possibly use to pay back your unsecured creditors. Also, the trustee will look for mistakes in your bankruptcy petition and check for signs of possible fraud.

5. Attending the Meeting of Creditors

Next you will attend a 341 hearing run by your bankruptcy trustee. The 341 hearing is also known as the Meeting of Creditors in which the trustee will ask you questions about your bankruptcy. At this meeting, creditors could appear and ask questions however this is rare.

6. Qualifying for Chapter 7 Bankruptcy

This step typically goes unnoticed by most bankruptcy filers if they file with an experienced bankruptcy attorney, but the bankruptcy court will decide if you qualify for Chapter 7 Bankruptcy. Typically a bankruptcy filer will be informed by their lawyer whether or not they are qualified for Chapter 7. If the court rejects and dismisses your bankruptcy petition, consider switching attorneys to one that can tell you whether or not you qualify for Chapter 7 bankruptcy before you waste your time.

7. Seeing What Happens to Your Property

In most cases, your property will be exempt meaning that you will get to keep it. However, if you have property that is not covered by the exemptions, the bankruptcy trustee will most likely sell it to repay your creditors. A good reason to have a bankruptcy lawyer for your Chapter 7 bankruptcy is that they will work with you to prevent the loss of your property.

8. Working with Your Secured Debts

During the process, you must decide what to do with your secured debts such as car loans and mortgage. Typically, you have three options: (1) give back the property, (2) pay the amount you owe for the property, or (3) continue paying for the property like normal. Chapter 7 bankruptcy will not eliminate your secured debts, and you will still be responsible for certain debts before and after your bankruptcy.

9. Taking a Financial Management Course

Before you can complete the Chapter 7 Bankruptcy process, you must take a financial management course. The financial management course is a separate course from the credit counseling you received earlier in the Chapter 7 Bankruptcy process.

10. Receiving Your Discharge

After you have successfully finished all the requirements for your Chapter 7 Bankruptcy, the bankruptcy courts will issue you a discharge. A discharge is the official court order freeing you from your unsecured debts. When you receive your discharge, the court-ordered automatic stay will end.

11. Closing Your Case

After the bankruptcy courts issues your discharge, your case will be officially closed after all the paper work has been processed. At this point, you are free from your unsecured debt and free to enjoy your new financial freedom.

This is a basic overview of what will typically happen in a Chapter 7 Bankruptcy. An inexperienced bankruptcy lawyer will make this process your worst nightmare, and an experienced bankruptcy lawyer will make this the easiest and fastest thing you have done to get debt relief. Let the experience at the Law Offices of Bonnie L. Johnson help you. Call for a FREE consultation at 214.748.4848 to schedule your appointment today or fill out our FREE evaluation to get help immediately.Here are the steps to a Chapter 7 bankruptcy. Most of the time, as a bankruptcy filer, most steps happen without any action on your part. An experienced bankruptcy attorney will help you through the process without any hassle or stress on your part. However, there are times that you will need to cooperate with your bankruptcy lawyer to make sure the process flows smoothly in order for you to get the debt relief you need.

1.) Getting Pre-Bankruptcy Credit Counseling

When you file for a Chapter 7 bankruptcy, you will need to get credit counseling from an approved agency. You should not have to worry about finding an approved agency for your credit counseling. Talk with your bankruptcy lawyer first, and they will see what you need to do and find you an approved agency when the time is right.

2.) Filing a Bankruptcy Petition

You will need to fill out the forms for your bankruptcy case which includes detailed information about your income, expenses, what you claim as being exempt, and other information that the bankruptcy court requires. This part of the bankruptcy is most likely the hardest part of your bankruptcy. Your bankruptcy attorney will advise you and help you fill out all the necessary documents.

3.) Receiving the Automatic Stay

Immediately after filing your bankruptcy petition, the Automatic Stay starts working for you. The Automatic Stay will prevent your creditors from taking any more collection actions against you like foreclosing on your home, repossessing your car, suing you, and harassing you. However, the Automatic Stay only is in effect until someone succeeds in filing a Motion to Lift Stay. A Motion to Lift Stay is an objection to the court ordered Automatic Stay which a creditor can file if they believe the Automatic Stay is not warranted in your case.

4. Meeting the Bankruptcy Trustee

The bankruptcy courts will assign you with a bankruptcy trustee to oversee your case. The bankruptcy trustee will try to maximize the amount of assets and property they can possibly use to pay back your unsecured creditors. Also, the trustee will look for mistakes in your bankruptcy petition and check for signs of possible fraud.

5. Attending the Meeting of Creditors

Next you will attend a 341 hearing run by your bankruptcy trustee. The 341 hearing is also known as the Meeting of Creditors in which the trustee will ask you questions about your bankruptcy. At this meeting, creditors could appear and ask questions however this is rare.

6. Qualifying for Chapter 7 Bankruptcy

This step typically goes unnoticed by most bankruptcy filers if they file with an experienced bankruptcy attorney, but the bankruptcy court will decide if you qualify for Chapter 7 Bankruptcy. Typically a bankruptcy filer will be informed by their lawyer whether or not they are qualified for Chapter 7. If the court rejects and dismisses your bankruptcy petition, consider switching attorneys to one that can tell you whether or not you qualify for Chapter 7 bankruptcy before you waste your time.

7. Seeing What Happens to Your Property

In most cases, your property will be exempt meaning that you will get to keep it. However, if you have property that is not covered by the exemptions, the bankruptcy trustee will most likely sell it to repay your creditors. A good reason to have a bankruptcy lawyer for your Chapter 7 bankruptcy is that they will work with you to prevent the loss of your property.

8. Working with Your Secured Debts

During the process, you must decide what to do with your secured debts such as car loans and mortgage. Typically, you have three options: (1) give back the property, (2) pay the amount you owe for the property, or (3) continue paying for the property like normal. Chapter 7 bankruptcy will not eliminate your secured debts, and you will still be responsible for certain debts before and after your bankruptcy.

9. Taking a Financial Management Course

Before you can complete the Chapter 7 Bankruptcy process, you must take a financial management course. The financial management course is a separate course from the credit counseling you received earlier in the Chapter 7 Bankruptcy process.

10. Receiving Your Discharge

After you have successfully finished all the requirements for your Chapter 7 Bankruptcy, the bankruptcy courts will issue you a discharge. A discharge is the official court order freeing you from your unsecured debts. When you receive your discharge, the court-ordered automatic stay will end.

11. Closing Your Case

After the bankruptcy courts issues your discharge, your case will be officially closed after all the paper work has been processed. At this point, you are free from your unsecured debt and free to enjoy your new financial freedom.

This is a basic overview of what will typically happen in a Chapter 7 Bankruptcy. An inexperienced bankruptcy lawyer will make this process your worst nightmare, and an experienced bankruptcy lawyer will make this the easiest and fastest thing you have done to get debt relief. Let the experience at the Law Offices of Bonnie L. Johnson help you. Call for a FREE consultation at 214.748.4848 to schedule your appointment today or fill out our FREE evaluation to get help immediately.