WHERE DO I BEGIN?
Even a quick phone chat with an attorney can help you get started. If you might benefit from a bankruptcy or other debt relief options attorney will ask you to provide more details. Attorney wants to know about your: Property (Assets), Income, Expenses, Amount and Types of Debts1. DOCUMENT GATHERING TO ASSESS YOUR SITUATION
Attorney needs information and documents to understand your situation. Documents are also needed in preparing a bankruptcy petition. It is imperative to be truthful, accurate, and forthcoming with the information.
2. SCHEDULE AND ATTEND A CONSULTATIONA consultation should include a complete review and analysis of your financial situation and available options. A discussion regarding: Credit Consolidation, Debt Settlement, Budgeting, Chapter 7, Chapter 13, doing nothing. What can you expect? How does do these options work? The focus is on educating you about the options, calculating costs, formulating an opinion about current situation and future prospects. No one should tell you whether to file for Bankruptcy. You deserve to have all the information needed to make a wise and informed choice for you and your family.
If you choose to proceed with a filing of your case, attorney will need supporting documents to prepare the petition and provide as evidence to the Trustee. This includes: financial statements, pay stubs, Profit and Loss Statements, Security Agreements, Valuations of property, Collection Notices, and others.
3. CREDIT COUNSELING
Bankruptcy laws require that each petitioner complete a credit counseling course prior to the Bankruptcy case being filed and provide a Certificate of Course Completion. The course must be completed with a provider approved by the U.S. Trustee's Office. It may be completed in person, over the phone, or through the internet. Attorney can refer you to legitimate low cost providers. Some of the high end as far as expense goes providers charge as much as $50. You should be able to obtain the same result with under $30.
4. GETTING YOUR BANKRUPTCY CASE FILED
After the necessary documents are delivered the attorney prepares the petition. Most attorneys ask that you provide the documents at least 48 hours before the petition signing appointment. This gives attorney enough time to review all the documents and prepare the petition. Emergency situations (such as a Foreclosure Trustee Sale, wage garnishments or imminent IRS levy) may prompt a need for faster filing; if this is your situation PLEASE CONTACT ATTORNEY WITHOUT DELAY. Timing of the filing can be the most important part of your Bankruptcy case.
PETITION SIGNING:
Your Attorney will meet with you and review the contents of the petition. A petition is made up of several schedules and forms, altogether 50-80 pages in total, depending on your case. Expect to spend at least an hour with your attorney to thoroughly familiarize yourself with what you are signing under penalty of perjury. It is your responsibility as a Petition to be thoroughly familar with your petition. While the attorney is there to help you with this process you cannot delegate this responsibility to the attorney. If there is something in the petition that you do not agree with or do not understand you should call attention to the item(s).
The filing of the case in San Diego is done electronically. San Diego Bankruptcy Court is on the federal ECF system. Attorneys are required to file using this system as the Bankruptcy Court's clerk will not accept paper filings. Public can open case status public access to court electronic records, Pacer for short.
The Bankrutpcy Court's computer produces an instant confirmation and case number. Within 24-48 hours the case is assigned to a Trustee and an email notice is sent to the attorney providing name of Trustee, date, and time of the 341 meeting.
Your attorney will notify you immediately of the appointed day and time to ensure that you are available to attend this meeting as your appearance is absolutely mandatory.
The Bankruptcy Court mails out a Notice of Bankrutpcy Filing to you, your attorney, and your creditors. The mailing typically happens within 5 days of the filing. As soon as your creditors are notified, they should update their records and immediately cease communications with you. You are represented with regard to your debt and all communications should be funneled through your attorney.
5. CREDITOR'S MEETING
Your attorney should receive a notice within 24-48 hours after filing of the petition the date and time of your Creditor's Meeting. The meeting is assigned by the Bankruptcy Court's computer. Your counsel attends the creditor's meeting with you. Debtor(s) presence is mandatory. This meeting is officiated by a Trustee. The Trustee's responsibilities include a review of your petition and the supporting documents for accuracy, to administer any assets that may be available for the benefit of the creditors, to conduct a Creditor's Meeting giving creditors the opportunity to question a debtor with regard to debts and assets.
After the creditor's meeting, a period of 60 days must pass, allowing any creditor to object to discharge. If the time period lapses and the creditor fails to object on some valid basis they may have, their right to object is lost. This is what we sometimes call "scream or die".
6. FINANCIAL MANAGEMENT COURSE
Bankruptcy rules require that in order to receive a discharge, each petitioner must complete a Financial Management Course. Similar to the Credit Counseling Course, the course can be completed online. A certificate evidencing the course completion along with a Form (called B23) must be filed with the Bankruptcy Court. Failure to complete the course in a timely manner will result in the case being closed, without discharge.
Prior to Discharge, there may be other items that need to be taken care of such as: dealing with creditors on reaffirmation agreements. A secured lender (car lenders for instance) may require that a petitioner sign a new agreement, post filing, with same or sometimes better terms in order to keep the vehicle(s). Your attorney will discuss your loan(s) with the lenders and obtain the necessary documents for your signature.
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