Lighthouse

What Happens After I File Bankruptcy?

After filing your Voluntary Petition with the Court, an “automatic stay” immediately goes into effect which puts on hold any collection attempts by creditors of the debtor.  This includes not only communication directly with the debtor, but also any pending collection lawsuits or wage garnishments against the debtor.

In all Chapter 7 and 13 cases, and some Chapter 11 cases, a case trustee is assigned to administer the bankruptcy estate and be sure any available assets are distributed to the creditors.

Chapter 7

After filing your petition, your case will be scheduled for a creditor meeting where you will meet with the assigned trustee and your attorney to review your petition.  Following this date, creditors will generally have sixty days to object to discharge of the debtor or to the dischargeability of a debt. The debtor will have sixty days to complete the second online course called the financial management course.  Generally after sixty days with no objections from creditors, the discharge order will issue and the case will be closed.

Chapter 13

Chapter 13 debtors will also attend a creditor meeting with the trustee and after a hearing date will be set for confirmation of their repayment plan.  Absent any creditor objections, the plan will be confirmed and the debtors will enter their repayment period.  At the close of the repayment period the debtors will receive an order of discharge.

More information on Bankruptcy:

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