Chapter 7 Bankkruptcy Timeline

When you file for Bankruptcy you legally declare that you can no longer pay back your debts

. Most people have the choice of either filing for a chapter 7 bankruptcy or a chapter 13 bankruptcy, depending on a variety of factors including facing foreclosure, quantity of debt and income. For most people filing for bankruptcy, a chapter 7 bankruptcy makes the most sense. For some, a chapter 13 bankruptcy is appropriate. An experienced bankruptcy attorney can help you determine which kind of bankruptcy relief is right for you. If you choose to file a chapter 7 bankruptcy, here is how it is going to play out:

First, your declaration officially begins when you sign the paperwork and file the proper papers with a bankruptcy court. This is known as the bankruptcy petition. In North Carolina, you must finish a counseling course before you can file for bankruptcy. Your bankruptcy attorney can direct you to an approved credit counseling firm. This can be finished no longer than six months before you file your paperwork. Upon filing, the automatic stay takes effect and your wages will no longer be garnished, your creditors can no longer proceed with legal actions against you plus, in most cases, even call you concerning your debt. The court will contact your creditors so long as you properly list them in your bankruptcy petition.

Next, you must meet with your creditors in what is called the 341 meeting of creditors. Most creditors opt to not attend, but you are required to be there. A trustee will be assigned to your case and presides over the 341 meeting. This meeting usually lasts less than five minutes, and creditors typically do not show up. Afterwards, if you have any nonexempt assets, your trustee will sell any of your possessions that are nonexempt. Most people filing for a chapter 7 bankruptcy don't have any nonexempt assets. If funds are available to unsecured creditors, those creditors have up to ninety days to then file claims.

After the ninety days are over, or after all of your creditors have filed their claims (whichever comes first), you are going to be discharged and all of your debts are going to be eliminated with certain exceptions, like student loans and child support payments. Additional debts that cannot be wiped clean from your slate include domestic support obligations and some taxes.

Once you have received your discharge, your creditors are prohibited from attempting to collect on a discharged debt. All attempts to collect are prohibited. Now and again, a creditor will continue to attempt to collect a debt after you have received your discharge. In the event this happens, the creditor is in violation of the discharge injunction. If you receive any form of communication from a creditor after you have received your discharge, you need to speak to your bankruptcy attorney right away.

Jane Weatherly is a Bankruptcy Attorney with offices in Raleigh, North Carolina. The office is a debt relief agency and helps individuals file for relief under The United States Bankruptcy Code. For more information, please call (919)758-9296 or visit the following link Bankruptcy Attorney Raleigh.

by: jane2011

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