If you are wanting to file a Chapter 7 bankruptcy and you qualify to do so, you are entering into what may seem an overwhelming and difficult time, but it need not be so. Here are some of the basic steps in going through a Chapter 7 bankruptcy:
1) Review your monthly income against your monthly expenses;
This sounds basic, but it is important for you to know all your sources of income, your monthly expenses, and to whom and how much you owe money. You should go through all your bills, list your creditors and how much in total that you owe each. I will pull your credit report, but not all creditors show up on the report, so you must furnish the identity of any others. Remember, the bankruptcy code requires you to disclose ALL creditors, besides, if you don't, you may not receive a discharge of that particular debt.
2) Pay attention to possible foreclosures, repossessions and/or judgments;
Sometimes these are the things that cause you to need to file a bankruptcy, often times when this kind of thing happens or is about to happen, that's when people come to see me. Every situation is different, but time can be of the essence, don't wait too late to do something.
3) Consult with an attorney;
If you are needing help to file a case, that is not the time to try to represent yourself. See a good bankruptcy lawyer. You need someone to walk you through the process, which can be quite complicated for some. It may cost more money, but the cost can be well worth it. Be sure to do this in plenty of time to give the lawyer time to prepare your case to file, please don't wait too long.
4) Take the required credit counseling course;
The bankruptcy code now requires anyone filing a Chapter 7 case to complete two different educational classes, one called credit counseling and one called personal financial management. One is take before your case is filed and one after. These classes can be take on-line or over the phone and there are many providers for this service. Remember, you won't get a discharge of your debts without completing them and filing your certificates with the clerk (the filing is done by your lawyer).
5) File your case, along with the accompanying schedules;
After you take care of the above matters and make proper arrangements with your attorney, your case will be filed. Times vary to do this, but the biggest variable is how quickly you get all the information and documents to your lawyer. Some documents are difficult to obtain, like pay stubs, W-2s, tax documents, etc., so understand this going in. Your lawyer may seem to be hounding you to get this in, but there is a reason for this, since most of what is asked for is required to be furnished to your Trustee, and often times if it is not, the Trustee can move to dismiss your case.
6) Attend your 341 meeting (your meeting of creditors);
Your 341 meeting, which is in Austin if you are filing in the Western District of Texas, Austin Division, is usually set about 30 days after your case is first filing. Your lawyer will get the exact date from the clerk once your case is filed. Creditors may show, although they usually do not, and ask questions about your debts or collateral. Your lawyer will be with you for this meeting; it may seem stressful and uncomfortable but remember, all those other people that will be there are there for their particular meeting and feel the same way.
7) Wait your time and get your discharge order;
Sometime after the 60 day waiting time after your 341 meeting, the clerk can issue your discharge order, assuming there are no objections, adversary matters or other filing to prevent this. Some debts may not be dischargeable, student loans, child support obligations, most IRS debts, for example. But, in the vast majority of cases, it's done.
Lee Norton Bain has been in practicing in Georgetown, Texas since 1980 and is now handling almost only bankruptcy cases. Please visit him at his website "leebainlaw.com".
