Chapter 7 Bankkruptcy Timeline

By Author: Jane Weatherly
Total Articles: 1
Comment this article

If you file for Bankruptcy you legally declare that you can no longer repay your debts. Most people have the choice of either filing for a chapter 7 bankruptcy or a chapter 13 bankruptcy, based on various factors including facing foreclosure, amount of debt and income. For most people filing for bankruptcy, a chapter 7 bankruptcy makes the most sense. For a few, a chapter 13 bankruptcy is right. An experienced bankruptcy attorney can help you determine which type of bankruptcy relief is right for you. If you choose to file a chapter 7 bankruptcy, here is how it will play out:First, your declaration formally begins when you sign the paperwork and file the appropriate papers with a bankruptcy court. This is known as the bankruptcy petition. In North Carolina, you have to 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 and, 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 known as the 341 meeting of creditors. Most creditors opt not to attend, but you are required to be there. A trustee will be assigned to your case and presides over the 341 meeting. This meeting generally lasts less than 5 minutes, and creditors usually don't show up. Afterwards, for those who have any nonexempt assets, your trustee will sell any of your possessions that are nonexempt. Most individuals 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 will be discharged and all your debts are eliminated with certain exceptions, like student loans and child support payments. Additional debts that can not be wiped clean from your slate consist of 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. Once in a while, a creditor will continue to try 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 kind of communication from a creditor after you have received your discharge, you need to contact your bankruptcy attorney immediately. 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.