What Happens during Chapter 7 Bankruptcy

Many families and individuals are hit hard by unforeseen circumstances such as a loss in employment or extra medical expenses. Although this time can seem like an all-time low, it is possible to get back on the right track with Chapter 7 Bankrupty. Many people are intimidated by this idea but consulting with a bankruptcy attorney can help you see the light. Some common questions which arise are:
What happens in a bankruptcy case? Will I lose my possessions? Can I get a credit card after bankruptcy?

Some of these questions have been answered in previous blog posts and more additional information will be provided here. Being well informed about the chapter 7 bankruptcy process can help you prepare yourself mentally for the upcoming events in your case.

What Happens in a Chapter 7 Bankruptcy Case?

Upon filing your petition with the courts, here is a typical list of what you should expect.
Your creditors will be informed via mail by the courts officially – this includes any companies or individuals you may owe money to. The creditors are given notice as to the time and place of your first official meeting, the 341 Meeting of Creditors. Creditors are given the opportunity to come to this meeting to contest a particular debt, but many times they do not.

  1. Creditors ability to collect from you will be immediately frozen upon filing. This means no phone calls or other communications are allowed. In certain cases there are exceptions which require the judgment of a bankruptcy attorney.
  2. The 341 Meeting of Creditors will occur. This meeting is run by a trustee who commonly asks your attorney questions about your filing. It is also not uncommon for the trustee to ask you to give a brief financial history in your own words.
  3. Judgement is handed down and your case is approved or denied. Upon an approval, you can start moving forward with your life and begin to re-establish credit. Remember, it is wise to have an attorney see you through this entire process to make sure everything goes according to plan.

Knowing more about the Chapter 7 bankruptcy process can make your case go by easier and without stress. We encourage you to read more about Chapter 7 bankruptcy in ourbankruptcy blog.

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  2. […] than in previous epochs. This blog is focused on providing a recent and concise summary of how chapter 7 bankruptcy is now handled in the U.S. and why it shouldn’t be considered a terminal […]