How Does Chapter 7 Bankruptcy Work?
How does Chapter 7 Bankruptcy work? Our… 12-step program spells it out:
1. You meet for a chat with your San Diego Bankruptcy Attorney (yours truly). Consultation is free of charge, pain free (you’re working with down to earth folks here), and it’s a first big step to financial recovery.
2. We assess your assets and liabilities (what you own and what you owe). We examine your expenses and inquire into income. If we determine chapter 7 bankruptcy is in your best interest, then we hit the ground running. (If it’s not, then we consider an alternative, like chapter 13 bankruptcy.) Our bankruptcy clients‘ cases are seen through–start to successful finish–by the same attorney they meet on day one.
Chapter 7 bankruptcy combats debt that would make you pale and ail. It’s NOT a booze cruise. But here’s how to CRUISE through it: our concise guide, which answers: how does chapter 7 bankruptcy work?
3. Once retained, we are here for YOU. We respond immediately to any question, big or small. We’re charged with representing your rights and ensuring a successful outcome. Creditor calls bugging you? No problem. Give em our number. We’ll handle the rascals.
4. And then we assign you… homework. That’s right. We need some documentation (tax returns, pay advices, payoff statements). No biggie.
5. You complete a little online “Credit Counseling Course” that takes an hour or so. It’s a standard bankruptcy requirement.
6. Based on compilation, review and analysis of materials and input, we draft your complete and accurate bankruptcy petition (the 50- to 70-pages we bless the bankruptcy court with). The chapter 7 bankruptcy work and preparation performed pre–petition promises a proper post-petition product. Or, in comprehensible, albeit non-alliterative English: the bankruptcy lawyer does his job.
7. Upon your approval, we file the petition with the Bankruptcy Court.
8. Immediately upon filing, the bankruptcy court issues an “Automatic Stay.” This is a Federal Court Order that compels creditors to stay (stop) all collections, repossessions and foreclosures. The phone calls, the pressure, the burden of debt will be lifted. You may breathe a sigh of relief.
9. Your property becomes an Estate: the estate is technically owned by a bankruptcy trustee, a party appointed to administer your case. If the estate is too big (i.e. you have WAY too much stuff), the trustee can sell some of it to pay back your debts. But this is extremely rare; and we’d let you know in advance if there was any risk of that.
10. You need to complete another online course– this one’s dubbed “Financial Management.” It takes an hour or two. (Shrug.)
11. About a month after the bankruptcy filing, a so-called Meeting of Creditors takes place at a San Diego office. Creditors seldom show at their own “party.” Your bankruptcy attorney, however, is there to faithfully represent you. The meeting is a brief interview by the above-mentioned bankruptcy trustee. He or she has you swear under oath that the information in the paperwork we’d filed is true and correct. The meeting is anti-climactically quick and you’ll be completely prepared to answer all questions. Really, no sweat should be shed.
12. About 60 days after the bankruptcy meeting of creditors (or about 3 months from the filing date), the Bankruptcy Court will issue your Discharge Order. It certifies the cancellation of your debt (except for those that aren’t covered, like pesky student loans).
During this process, the trustee, creditors, and the United States Trustee (the branch of the Dept. of Justice that checks for fraud in bankruptcy) may beg for further information than what’s originally requested. Your San Diego Bankruptcy attorney is there to anticipate, then guide you past any hoops to ensure that you obtain your goal: to be debt free through chapter 7 bankruptcy.
And that’s the nutshell answer to the question: how does chapter 7 bankruptcy work? The San Diego bankruptcy lawyer must stress: that’s how our cases work. Retain the wrong outfit and your chapter 7 bankruptcy won’t work.
Question: How DOES chapter 7 bankruptcy work? Answer: Well. It works well. (Both financially and grammatically.)