The first step in filing bankruptcy is collecting all of your personal financial information. This should include a list of all your debts (secured and unsecured), tax returns for the last two years, deeds to any real estate you own, car titles, and any other loan documents you may have. You might find getting a copy of your credit report to be helpful as well.
Then you will need to complete the bankruptcy forms. Either your attorney will handle this step, or if you decide to file without the help of an attorney, you will have to fill them out yourself. These forms, collectively referred to as the schedules, ask you to describe your current financial status and recent financial transactions. This information is usually required for activity within the last two years. If you are filing Chapter 13, a proposed repayment plan must also be submitted with your petition. Once the bankruptcy petition is completed you will need to file the petition with your local bankruptcy court.
Immediately upon filing your petition with the bankruptcy court, an automatic stay goes into effect. This provision prevents creditors from making direct contact with you or staking a claim to any of your property from the date of filing. Approximately a month after filing bankruptcy, the trustee will call a first meeting of creditors. This meeting, often called a 341 meeting, requires the presence of the debtor. Creditors rarely attend the 341 meeting even if they have some specific questions about the bankruptcy filing. Objections are typically resolved by negotiation between the debtor or the debtor’s counsel and the creditor. If a compromise can not be reached, a judge will intervene.The meeting of creditors typically lasts about five minutes. If there are no challenges, you will receive a notice from the court, usually within four to six months, that the bankruptcy is discharged.
Tags: bankruptcy, Chapter 13, credit report, discharge, unsecured debts
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