The knowledge about the execution of the bankruptcy process will be important for a debtor. From the first day of consulting with a renowned bank attorney, Los Angeles (if the debtor lives in LA regions of the California state), the bankruptcy case starts through the meticulous step-wise process. Working with Recovery Law Group will make the journey of a debtor easy and transparent – they practice in the states of California, Nevada, and Texas.
The first step in the bankruptcy process is the stopping of any harassment by the debt collectors and in extreme conditions, a lawsuit on behalf of the debtor is filed by the bank attorney. This lawsuit is to report a violation of the debtor’s rights in accordance with the Fair Debt Collection Practices Act (FDCPA).
The next step in the process is preparing all the financial status specific documentation and ensuring that the facts are substantiated. The attorneys work closely with the debtors and keep them informed on the status of the case with respect to the documentation.
To be either eligible for a Chapter 7 or Chapter 13 bankruptcy filing, a pre-filing briefing has to be completed. This needs to cover if there are opportunities for credit counselling and talk about assistance needed for the debtor to do a budget analysis within a span of 180 days prior to the filing of the case. The certificate that you obtain from the credit counselling agency and from the non-profit approved budget has to be used in the filing of the actual bankruptcy case with the court. The list of approved credit counselling agencies will be shared to the debtor by the law firm.
Filing of the bankruptcy case
Once the bankruptcy case is filed, a bankruptcy trustee is appointed to the debtor’s case. The roles of the trustee include the liquidating of the unsecured assets and paying off the dues to the creditors. In most of the bankruptcy cases, there are almost no assets that are viable for liquidation. The bank attorney always shares the foreword about the absence of assets to the debtors.
In a Chapter 13 bankruptcy filing, the role of the trustee includes the reviewing of the proposed repayment plan and making recommendations on its feasibility in the court. The trustee also ensures that the payments according to the repayment plan’s terms are distributed to the creditors. Debtors who have filed for Chapter 13 bankruptcy will be sending their monthly payments to the trustee along with any documents that are mandated by law.
The meeting of Creditors
In about 4 to 6 weeks from the time of filing the bankruptcy case in the court, the meeting of creditors is held. The trustee handles the meeting of the creditors and asks the debtor questions that are needed to be related to your petition and mostly involving the assets or the income. The creditors mostly do not show up for this meeting and the meeting finishes in a span of a few minutes.
The feeling of facing a meeting of creditors is anxiety and worry for most of the debtors. But there is nothing to fear and being in a courtroom that is informally set along with a trustee who is only aligned to getting honest and relevant information from the debtor.
Prior to appearing for the meeting of creditors, ensure that you carry the Social Security Card and any state-issued photo identity card for the meeting. Also, the documentation that is needed to be shared to the trustee has to be verified with your bank attorney.
Hearing of Confirmation – Chapter 13
This will be an additional hearing, only in the event of filing for Chapter 13 bankruptcy. It is called the Hearing of Confirmation and during this, the bankruptcy trustee makes the recommendations on your repayment plan to the judge. The recommendation is done considering the fact that the proposed a repayment plan is in line with the Bankruptcy Code and satisfy its requirements. The judge gives the final approval on the plan in this hearing or proposes changes if they are needed
Duration of the case
The debtors who file either for a Chapter 7 or a Chapter 13 bankruptcy, must finish Financial Management Courses prior to receiving the discharge. The course is a guideline to uncover and rectify the financial errors that have led to the bankruptcy for the debtor.
The Chapter 7 case is usually completed in a span of 90 days from the Meeting of Creditors. At the conclusion, a single page document called the Discharge of The debtor is handed to the individual from the court. Also an official court order, this document relieves you from the obligation of paying your past dues with regards to your bills. It may not clear you off all your debts – work with your bank attorney to find out the list of debts from which you may not gain exemption.
The discharge order in a Chapter 13 bankruptcy is only issued after the successful completion of the repayment plan of the debtor. Hence this duration varies on the type and the length of your Chapter 13 plan.