Filing a chapter 7 or chapter 13 bankruptcy can be a scary process, but in the right hands of a proper attorney, it doesn’t have to be. Let’s say you file and now you want to know what happens after you’ve filed.
First, the automatic stay is applied when your case is filed. This stay prevents your creditors from pursuing any further collection activity, including lawsuits or garnishments.
Then, a trustee will be assigned to your case. A trustee oversees the liquidation of your assets in a chapter 7 or your repayment plan in a chapter 13. Then, you’ll be assigned a date for your meeting of creditors. This meeting usually takes place a month after filing and at this meeting, your trustee will want to verify information you put down in your petition and schedules by having you placed under oath and asking questions about your assets, creditors, transfers, etc.
You’ll also have to take the second part of your credit counseling course. It’s very important to take this course after filing, but before your case is done. If it’s not completed within the appropriate time, then you will not receive your bankruptcy discharge order.
If you filed a chapter 7 bankruptcy, then the trustee may have to liquidate or sell some of your non-exempt property. If you want to keep these assets, you could pay the value or surrender them.
If you filed a chapter 13 bankruptcy, you won’t lose any assets, but you must follow the repayment plan every month.
Then, when your case is completed, in either a chapter 7 or chapter 13, your liability for any unsecured debt is gone! And, the creditors who were included in the bankruptcy can no longer pursue the debt. A bankruptcy doesn’t get rid of all debts though, so if you have student loans, certain tax debt, child support or other domestic support, or certain criminal fines, then those will most likely remain.
CALL NOW FOR A FREE STRATEGY SESSION FROM A MN BANKRUPTCY LAWYER AT LIFEBACK LAW FIRM
If you’re still having any thoughts about filing, or if you have questions or are ready to get your life back, reach out to Minnesota’s nicest bankruptcy law firm by going to www.lifebacklaw.com. You won’t regret it!
