A bankruptcy filing can be a scary affair for many since they are already worried dead about the repercussions, they could face due to it. However, all of this fear is unfounded say Dallas based bankruptcy law firm https://www.recoverylawgroup.com/. With experienced attorneys by your side, you will be guided regarding when to file and what to expect after the filing of bankruptcy. Additionally, they will also inform you what to do and avoid before filing for bankruptcy. If you need to discuss your case with experienced bankruptcy attorneys, you can call at 888-297-6023.
According to bankruptcy lawyers, if you are thinking of bankruptcy, it is important that you are well versed with the timeline of bankruptcy.
- 6 to 8 years before Chapter 7 bankruptcy filing – In case you have previously filed a Chapter 7 bankruptcy and got your debts discharged, you cannot file another Chapter 7 petition before 8 years. If you had previously filed for a Chapter 13 bankruptcy and received a discharge, then you can file a Chapter 7 bankruptcy petition, after 6 years, if you had paid almost 70% of your unsecured debts.
- 1 year before filing – While going through your financial records, a bankruptcy trustee can look up to 1 year back for any debts paid to relatives or close associates. Any such payment can be construed as preferential payment and can be reversed. This will then be paid to other creditors. in case you tried to hide any asset by transferring it or hiding it within 1 year of the bankruptcy filing, then you might be denied a discharge and the property recovered. It is therefore recommended that you wait for 2 years to be sure that no such thing happens.
- 90 days prior to filing – You are required to have residential status in the state of the bankruptcy filing. If not, you should have lived for at least 90 days in the state before filing bankruptcy there. If the minimum duration is also not fulfilled, then you should file for bankruptcy where your main assets were located for the most part of 180 days prior to a bankruptcy filing. Additionally, you should neither make any new debts ($500 or more), nor pay any creditor in full during this period.
- Filing of bankruptcy – Once you have filed for bankruptcy, the automatic stay is enforced. This prevents your creditors from pursuing any collection action including harassing phone calls. a Notice of Commencement is drafted by the court and mailed to your creditors informing them of your bankruptcy filing. It also provides information regarding the time of 341 Hearing which is the deadline for your creditors, for filing their claims and who will be the bankruptcy trustee.
- 30 days after filing for bankruptcy – you need to inform the court of your secured assets which you intend to keep or reaffirm. This is done by filing a Statement of Intentions in Court. This also helps in informing the Court which secured assets you are turning over to your bankruptcy estate.
- 3-6 weeks after bankruptcy filing – Meeting of Creditors takes place by now. You need to provide all financial documents to the Bankruptcy trustee a minimum of 7 days prior to this meeting.
- 30 days after Meeting of Creditors – Any objection that any of your creditors or your bankruptcy trustee has to your petition must be filed within these 30 days.
- 90 days after Meeting of Creditors – Creditors should file their Proof of Claim with Court which tells how much you owe them. Unless a Proof of Claim is submitted by a creditor, they won’t get paid from your Bankruptcy Estate.
Though this provides an approximate idea of what happens when you file for bankruptcy, you should consult hiring an experienced bankruptcy attorney to get all your questions answered.