Getting Started with your Bankruptcy Filing
A lawyer will prepare the bankruptcy petition, schedules and statements forms, attend the meetings with creditors and serve as your advocate with the judge, trustee and creditors.
A lawyer can help you deal with your creditors before, during and after bankruptcy proceedings. Bill collectors may not contact you at unreasonable times at home, and they may not contact you at work if they know that your employer disapproves. If you have a lawyer, bill collectors may only contact your lawyer.
During bankruptcy proceedings, you will receive additional protection from bill collectors. At the beginning of the proceedings, the court will order your creditors to stop their collection activities, including lawsuits, wage garnishments, repossessions and telephone calls demanding payment. It is unlawful for your employer to fire you for seeking bankruptcy protection.
After the bankruptcy proceedings have been completed, you must take care when dealing with creditors. Some creditors may try to collect debts that were discharged by the bankruptcy proceedings.
Some creditors may ask you to renew the debt by signing an agreement to pay it after bankruptcy.
Your Creditors
If you have a lawyer, bill collectors may only contact your lawyer.
Your lawyer can help you deal with your creditors before, during and after bankruptcy proceedings. Bill collectors may not contact you at unreasonable times at home, and they may not contact you at work if they know that your employer disapproves.
During bankruptcy proceedings, you will receive additional protection from bill collectors. At the beginning of the proceedings, the court will order your creditors to stop their collection activities, including lawsuits, wage garnishments, repossessions and telephone calls demanding payment.
Your Trustee
The bankruptcy court will appoint a trustee for your case shortly after the bankruptcy petition is filed.
In a repayment plan proceeding, the trustee coordinates the payment arrangements between you and your creditors. The trustee will collect payments from you and distribute them to your creditors. The trustee is also responsible for approving any new credit obligations that you undertake before completion of your repayment plan.
Your Property
A lawyer will advise you about the protection available for your property with a bankruptcy proceeding. For example, in a liquidation proceeding, the bankruptcy laws allow you to keep your exempt property.
A lawyer may advise you to sell some of your nonexempt property and use the cash to purchase exempt property. Although you may convert your nonexempt property into exempt property, you will be subject to severe penalties if you to try to hide your property.
In a Chapter 7 proceeding, you may be able to keep mortgaged property like a home or car if you “reaffirm” your loan with your lender. Reaffirming the loan means that you agree to pay it in full. The reaffirmed loan will not be affected by the discharge that you receive at the completion of the bankruptcy proceedings.
Property that you receive after 180 days from the start of the bankruptcy proceedings is yours to keep, including inheritances, gifts and life insurance.
