Filing for Chapter 7 bankruptcy is not a decision that should be taken lightly. Filing for bankruptcy always requires careful consideration. Many people who want to get rid of their debts through bankruptcy do not know what to expect after the filing.
Our Oakland Chapter 7 bankruptcy attorney at the Law Offices of Melanie Tavare can guide you through the bankruptcy process and help you prepare for what is to come.
Below are the six things to expect after filing for bankruptcy under Chapter 7.
After filing for Chapter 7 bankruptcy, a bankruptcy trustee will be assigned to your case. The trustee’s main role is to review your case and make sure you are eligible to file for bankruptcy. They will also sell your non-exempt assets to pay off your creditors. The trustee will work with you throughout your case to ensure everything is filed correctly and that you are following all of the bankruptcy rules.
One of the most significant benefits of filing for Chapter 7 bankruptcy is the automatic stay. This means that all collection activity from your creditors, including phone calls, mail, and lawsuits, will stop immediately after you file your bankruptcy petition. The automatic stay gives you some much-needed breathing room to start rebuilding your finances without being harassed by creditors.
A creditor meeting is a mandatory part of the Chapter 7 bankruptcy process. During the meeting, you will meet with your bankruptcy trustee and any of your creditors who want to attend. The meeting usually takes place 20-50 days after you file for bankruptcy, according to the official website of the U.S. Bankruptcy Court in the Northern District of California. This is an opportunity for the creditors to ask you questions about your financial situation, assets, and debts.
Reaffirmation agreements are documents that allow you to keep certain secured debts, such as your car loan or mortgage, even after you file for bankruptcy. If you choose to reaffirm a debt, you agree to pay it back according to the original terms of your agreement. This can be a good option if you want to keep your property and can afford to make the payments.
After filing for Chapter 7 bankruptcy, you will have to take a personal financial management course. This course is designed to teach you how to manage your money and avoid financial pitfalls in the future. It is a requirement to complete the course in order to receive your discharge.
The final step in the Chapter 7 bankruptcy process is receiving a discharge. This means that your unsecured debts, such as credit card debt and medical bills, are eliminated, and you have a fresh start. However, not all debts can be discharged, such as student loans and taxes. Make sure you speak with your bankruptcy attorney to determine which debts will be eliminated and which ones you will still have to pay.
Filing for Chapter 7 bankruptcy is a significant step towards financial freedom. However, it is important to be aware of the various steps in the process in order to avoid any surprises. You might want to hire an experienced attorney to make sure that you are on the right track toward financial stability throughout the bankruptcy process. Contact the Law Offices of Melanie Tavare to discuss your case. Call 510-255-4646 today.
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