Most importantly, with very limited exceptions, once you file your Chapter 7 Bankruptcy case, your bankruptcy protection is immediate. Creditors can no longer continue to make efforts to collect on the debts. So, yes the phone calls will stop!! And, yes the lawsuits will stop. And, yes the collection letters will stop. If you have a mortgage and are planning on keeping your home, you will continue making the monthly mortgage payments, of course. Same with your vehicles if you are planning to keep them. You may need to make arrangements to pay these types of creditors over the phone while your case is pending, as the automatic stay applies to all creditors, including the mortgage and auto loans.
What Happens After I File For Chapter 7 Bankruptcy?
Procedurally, upon the filing of your Chapter 7 Bankruptcy case, a trustee is appointed. The trustee’s job is to determine whether there are any non-exempt assets which should be liquidated (sold, turned into money) for the benefit of the unsecured creditors. You will know before filing whether you have any assets which are non-exempt and, therefore, subject to being liquidated by the trustee. In order for the trustee to do their job, they will conduct a meeting called the meeting of creditors. In that meeting, the trustee will confirm all of the information you have provided to the court in your bankruptcy filing and also may address any questions they have regarding your budget, the means test, or any other issues which might be present in your case. We will prepare you for this meeting, so no need to worry about what to expect.
After the creditor’s meeting, creditors have 60 days to file any objections they have to your discharge. If there are no objections to your discharge, you should receive it shortly after the expiration of those 60 days. If any creditor objects to your discharge, we will address those issues with you as they arise.
Have More Questions? Contact an Experienced Bankruptcy Lawyer Today
Generally, that is what to expect after your case is filed. Every case is unique with its own set of facts and issues, so it is important to engage experienced bankruptcy counsel. Feel free to contact us via phone or our website if you would like to discuss options regarding your specific financial situation.