Start The Process

The first and critical step is to take stock and evaluate the financial situation. Your attorney will want to know information as it pertains to your

- Debts

- Income

- Expenses

- Property

Click Here to Download Information Sheet

1. DOCUMENT GATHERING AND PREPARATION OF THE PETITION

Your attorney needs relevant information and documents to understand your situation. The documents you provide will also be necessary in preparing a bankruptcy petition.

It is important to be accurate and forthcoming with the information required, not to omit, or make mistakes in calculations. Certain required documents supporting the information provided within the petition must be timely submitted to the Trustee for review. This includes: financial statements, copies of deeds, pay stubs, profit & loss statements, security agreements, valuations of property, and others.

Click Here to Download Supporting Document Checklist

2. SCHEDULE AND ATTEND A CONSULTATION

Obtain a complete review and analysis of your financial situation and the available options. Chapter 7 versus Chapter 13 versus credit consolidation versus doing nothing. What can you expect? How does it work? Focus is on educating about options. No one can tell you to file. But you deserve to have all the information necessary to make a wise choice for you and your family.

CONSULT YOUR ATTORNEY BEFORE MOVING FORWARD TO THE NEXT STEPS.

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3. CREDIT COUNSELING

The new Bankruptcy rules require that the petitioner attend a credit counseling course. No petition can be filed without a certificate evidencing completion of the course. The counseling is provided through approved credit counseling agencies and may be obtained in person, over the phone, or through the internet. Please consult with your attorney before moving forward to this step.

Bankruptcy Credit Counseling and Debtor Education

4. FILING OF YOUR PETITION

Once the necessary documents are delivered to your attorney, the petition can generally be prepared within 24 hours. Emergency situations could warrant a faster filing.

Your Attorney will meet with you to review the contents of the petition, get all the necessary documents signed and ready for filing.

The filing is completed electronically and a confirmation is usually received instantly. Within a day or two, the case is assigned to a Trustee and a date and time for the Creditor's Meeting is scheduled (usually 30 days after filing).

Your attorney will notify you immediately of the appointed day and time to ensure that you are available to attend this meeting.

The bankruptcy court mails out notices to your creditors and as a result within 2-3 days all contact from creditors and collection agencies is strictly forbidden. Communication with regards to your case can be made by the creditors to your attorney.

5. CREDITOR'S MEETING

Your attorney will attend the creditor's meeting with you. This meeting is handled by the Trustee, who is assigned by the United States Trustee Office with the Department of Justice. The Trustee's job is to review your petition and the supporting documents for accuracy, to administer any assets that may be available for the benefit of the creditors.

6. DEBTOR'S EDUCATION COURSE

After the creditor's meeting, a period of 60 days must pass, allowing any creditors to object to discharge. This is what is commonly known as "scream or die". If the time period lapses and the creditors fail to object any valid claim they may have, it is lost once the 60 day period passes.

The law requires that in order to receive a discharge, a petitioner must complete a Debtor's Education Course. Similar to the Credit Counseling Course, the course can be completed online. A certificate is issued and an additional form must be filed with the court confirming the completion of this course. Failure to complete the course can result in your case being closed, without discharge.

Other considerations may include dealing with reaffirmation agreements. Secured lenders, such as those that provide money to purchase cars, may require that you 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.