What Happens After You File For Bankruptcy?
You may become numb after filing that you are bankrupt and you become unsure of what may happen next.Filing for bankruptcy is a difficult but sometimes necessary decision to make. Navigating bankruptcy doesn’t have to be confusing or unpredictable. This article focuses on telling you what happens after filing for bankruptcy.
Forms of bankruptcy
What happens after you file for bankruptcy can depend on what type of bankruptcy you file for chapter 7 or chapter 13. The primary difference between the two bankruptcy is whether or not people have the ability to keep their property; chapter 7 settles all benefits and chapter 13 make people keep their belongings and plan how they are going to be paying off the debt.
Your case is assigned a number and a judge
After you file for bankruptcy; your situation immediately becomes a case in the eyes of the law this means that it will be given a case number-just like a medical claim number-and will also be assigned a trustee and a judge. It is important that you keep your case number in your finger-tips after getting it because You will be able to give it to any creditors who come knocking-they won’t be able to hound you the moment that your bankruptcy filing becomes a case due to the law of automatic stay.Throughout the extent of your case, creditors, and other financial institutions won’t be able to contact you because of automatic stay; they will have to speak with the court itself if they want to have a conversation.Your trustee will be an important contact; he or she will be asking you the majority of questions during your court appearances. Your lawyer at this point will be essential after you file for bankruptcy.
The date for the meeting of your creditors is set
Shortly after filing for bankruptcy and receiving the meeting, there will be the setting for the meeting of all your creditors. During this meeting, your trustee will have a chance to ask some questions and also permits any creditors to ask you any questions.
Your lawyer comes in
Your lawyer will take care of some necessary paperwork and communications in the interim between your filing and your very first court meeting and this includes communicating with the trustee for your case, making sure all documents are in order.Your attorney will also make sure that any other attorneys involved in your situation are aware of the case and that any ongoing lawsuits cease and will appraise all property and assets you own. Your attorney will also have a conversation with you about the types of questions your trustee will ask you at the creditors meeting, so you can feel confident in how you’ll answer.
You go to a creditors meeting
Most creditors meetings don’t involve any creditors; you’ll appear in court and answer the trustee’s questions, many of which your attorney will have briefed you on beforehand.
The case can be suspended
Your case can be delayed if your trustee requires more information from you and your attorney it will then have a second hearing, but you likely won’t have to appear in this one.
You acquire a release
When your case is closed, you will be given a release notice within sixty days.
Get a new beginning
When you are set free, you can restore your credit score and be in control of a new monetary prospect.