#1 Rated Bankruptcy Lawyers in San Diego

What Happens After I File for a Chapter 7 Bankruptcy?

When you are considering seeking debt relief, you may be wondering what will happen after you file for bankruptcy. As soon as you file a bankruptcy petition, a chain reaction of events will occur. Understanding the process of filing for Chapter 7 bankruptcy can help you make informed decisions and navigate your bankruptcy petition as smoothly as possible.

  • Ensure You are Eligible for a Chapter 7 Bankruptcy 

The first step involves making sure that filing for Chapter 7 bankruptcy is your best option. Many individuals benefit from filing for Chapter 7 bankruptcy and prefer this type of bankruptcy because it is relatively quick and does not involve paying anything to creditors. However, there are income limits, and you will need to pass the means test. 

If you are ineligible for a Chapter 7 bankruptcy, you can pursue a Chapter 13 bankruptcy. Make sure you will be able to discharge the majority of your debt and keep the important property. It is also important to understand the downsides of filing for bankruptcy to make an informed decision.

  • Gather Your Financial Information

You’ll need significant financial information and documents to complete the Chapter 7 bankruptcy petition. You also need to complete the detailed schedules and your petition. Begin gathering all of your bank statements, paycheck stubs, tax returns, and more.

  • Complete the Credit Counseling Course

To complete the bankruptcy process, you must receive credit counseling from an agency approved by the US trustee program. There is a list of approved credit counseling vendors on their websites. In some cases, you will need to take and complete the course six months before filing for bankruptcy. You will need to file your completion certificate when you submit your bankruptcy petition. There are some exceptions to the bankruptcy class requirement, but generally, you will be required to complete the class.

  • File Your Bankruptcy Petition

After accurately completing the bankruptcy paperwork, you will need to submit it to the bankruptcy court. You will need to include your counseling course certificate and a bankruptcy fee. Once your filing is complete, the court will impose an automatic stay that will prevent most creditors from taking action to collect against you during your case. The automatic stay is one of the best things for petitioners in the bankruptcy process. The automatic stay will stop creditors from taking further action to collect from you, including:

  • Creating, perfecting, or enforcing a lien against your property
  • Beginning or continuing legal proceedings against you
  • Foreclosing on your home
  • Contacting you by mail or phone
  • Garnishing your wages
  • Levying your bank accounts
  • Repossessing your property

 

  • Work With Your Bankruptcy Trustee

After submitting your petition, you will need to work with the bankruptcy trustee assigned to your case. The bankruptcy trustee is required to administer your estate, examine your paperwork, and preside at or ask questions at your 341 meeting of creditors. The trustee will request financial documents, including bank statements, tax returns, paycheck stubs, and more, at least seven days before the 341 meeting of creditors. Depending on your local rules, you may be required to file tax returns with Bankruptcy Court.

  • Attend a 341 Creditor Meeting

After you file for bankruptcy, the bankruptcy court will send you a notice with the date, time, and location of the meeting of creditors. A creditor meeting is typically the only hearing you will need to attend. It is not held at a court, and there is not a judge present. Your bankruptcy attorney can attend the meeting with you. 

At this meeting, you will be required to answer questions from the bankruptcy trustee. Your creditors will have an opportunity to attend the meeting. They can also ask you questions if they attend, but they usually do not attend. You also need to answer questions about your identity and information in your petition. These meetings are not as intimidating as you think and usually only last about 10 minutes.

You might receive a reaffirmation agreement from one or more creditors asking you to reaffirm your debt. The agreement will state that you will still need to pay if the debt is not discharged during the Chapter 7 bankruptcy. If you are hoping to keep your encumbered car or home, you may benefit from signing a reaffirmation agreement.

  • File a Debtor’s Education Course 

Before you can receive a discharge of your debt, you will need to complete a debtors education course. Many providers file a certificate with the court for you after you finish the course. Do not delay completing the course because it could stall and derail your bankruptcy petition. You will not be able to receive a discharge of your debt without completing this course and submitting the certificate.

  • Wait for the Discharge of Debt and Finalization of Your Bankruptcy

About four months after you file your petition, you will be able to receive your bankruptcy discharge in the mail. If issues arise during your bankruptcy case, the process could take longer. In many cases, the bankruptcy court will close the bankruptcy case a few days after you receive the notice in the mail. 

However, your case can take longer to close if your trustee needs more time to sell your assets or litigation has arisen during the bankruptcy. Most debts can be discharged with a Chapter 7 bankruptcy, including credit card debt. There are a few exemptions. For example, child support, domestic obligations, and tax debts cannot be discharged through a Chapter 7 bankruptcy. 

  • Start Rebuilding Your Credit Score

Chapter 7 bankruptcies are liquidation bankruptcies. A discharge of debt gives you a fresh start and removes legal obligations for you to repay any discharged debt. When the bankruptcy has been finalized, and your debts have been discharged, you can begin rebuilding your credit score. During the process, your bankruptcy trustee will sell your non-exempt assets, also called liquidating, and pay off your creditors. After the debt has been discharged, your creditors will not be able to come after you forward the money you previously owed them.

See What Our Clients Have To Say

Yelp Review

Roger C.

I reached out to BLC to help assist with a chapter 7 business bankruptcy and they provided excellent guidance, advice, and support through the entire process. In my case an adversarial action was filed by one of the creditors and attorney Ahren Tiller and his staff provided sound ...arguments which prevailed. Couldn’t have found a more experienced and supportive team to represent me in a tricky situation. I would highly recommend them to anyone making the difficult but sometime necessary decision to find financial relief. Read more
Yelp Review

Justin R.

Like many others before and during the pandemic, life happenings caused me to be in a financial situation to warrant bankruptcy. The BLC was super professional all the way through the entire process. Right after I paid for my Bankruptcy, I got sick and had to have surgery and recovery. Then we ...were in full Pandemic mode. They were gracious to delay my filing until I was recovered and ready to file. I could not ask for more. The process was over all quick and painless for a simple Bankruptcy like mine. I feel a weight has been lifted and I can rebuild. Thank you for all your arduous work and patience, Gabriel, Ahren, and their teams are knowledgeable and efficient. Read more
Google Review

Katey Huntley

Responsive, friendly, kind, extremely easy to work with! So knowledgeable and made this entire process painless. Very grateful!

Google Review

Lynn Molina

Gabriel Hanna, Esq and the staff at BLC helped me in a very difficult time. I appreciate all the help and care they gave my case.

Google Review

Linda Cramer

I can’t say enough of how much this bankruptcy law firm helped me with my financial situation. They were all so helpful, efficient and made the difficult time and process as quick and easy as possible. I would recommend them to anyone I know and am glad to give my public recommendation as well. T...hey truly deserve a five star plus rating. Read more
Yelp Review

Andrea N.

I am very happy with my experience with BLC. Bankruptcy is not something anyone wants to go through, however everyone at BLC made my experience pleasant and easy. The process was explained thoroughly and I had an easy time reaching out and connecting with my attorney. Anika Renaud-Kim was my attorney ...and she was nothing short of amazing! She was very patient and generous with her time. Ms. Renaud-Kim definitely made me feel at ease and comfortable through the entire process. Read more
Facebook Review

Lidia Paramore

they did a great job for me, helped me anytime I needed something, my Lawyer Gabriel Hanna is the best, gave lots of confidence all the time..thanks BLC I will.always recommend you, I’m very grateful for your service!!!

Yelp Review

Rachael C.

When searching for information I had called a few different firms and received consults. BLC was the only one who didn’t shy away and provided answers and information during the consult. Once I agreed to move forward, they were supportive, informative, and eased my anxiety through the whole process.... I can’t recommend them enough. Read more
Google Review

Emily Martinez

AmazingI had many questions and uncertainties and the carefully explained it all and made it easy to understand. They facilitated a fast and easy process making this scary difficult thing simple

Ready To Eliminate Your Debt?

Bankruptcy is still the best option. Other debt plans make promises, but only bankruptcy delivers.

FREE CASE EVALUATION 

Logo

SAN DIEGO OFFICE

1230 Columbia St. #1100 San Diego, CA 92101

LOS ANGELES OFFICE

11500 Olympic Blvd., 4th Floor Los Angeles, CA 90064

VISTA OFFICE

380 South Melrose Drive #308 Vista, CA 92081
© 2023 Bankruptcy Attorneys. All Right Reserved.

Legal Disclaimer: The Bankruptcy Law Center is a California Licensed law firm with attorneys licensed in the state of CA, NY. Attorney Ahren Tiller is responsible for this advertisement. Bankruptcy Law Center’s principal office is located at 1230 Columbia st. Suite 850 San Diego, CA 92101. Prior results listed on this site do not depict or in any way infer a prediction or outcome.We are a debt relief agency proudly providing options to people with financial problems. View our Privacy Policy

© 2023 All Rights Reserved.