About
The Bankruptcy Process
When making financial decisions during the process, you should
consult your attorney. In particular there are three items
worth mentioning.
-
Under
bankruptcy law, certain luxury purchases over $1000 within
60 days of the bankruptcy filing are presumed non-dischargeable.
-
Under
bankruptcy law, cash advances aggregating $1000 within
60 days of the bankruptcy filing are presumed non-dischargeable.
-
Debts
involving materially false financial statements are non-dischargeable
under certain circumstances.
If
you file the bankruptcy yourself, you must fill out the
forms. There are several forms. There could be between
30 and 60 pages in your petition, schedule and other papers
filed at the time of your bankruptcy. You must follow
the local and federal bankruptcy court rules in completing
the forms. Preparing these forms requires an understanding
of both bankruptcy law and local state law in order to
enter the information correctly and accurately. The forms
have to be typed and a certain number of copies must be
included with the filing. Today, most attorneys use a
computer system to prepare these forms because of there
complexity and voluminous nature.
About
30 to 40 days after you file the bankruptcy you will have
to attend a hearing presided over by the bankruptcy trustee.
This hearing is called the First Meeting of Creditors.
At this hearing the trustee will ask questions under oath
regarding the content of your bankruptcy papers, assets,
debts and other matters. After the trustee is done, your
creditors will be permitted to question you. Do not worry,
your attorney will be there to represent you and your
attorney will help you prepare for the hearing. Sometimes,
after your hearing is over, various creditors will approach
you to discuss the status of secured property or the your
desire to retain a credit card. Your attorney will negotiate
with them, with your knowledge and approval.
After
this hearing you will normally not need to return to court.
However, if a creditor files a motion or an adversary
action, most likely you will have to return to court.
This is the exception and only your attorney can determine
if this is likely to happen.
Under
normal circumstances, the bankruptcy court will automatically
issue the discharge 60 to 75 days after the First Meeting
of Creditors.
You
can reestablish credit though and be back in "A" credit
two years after the discharge of Bankruptcy. The bankruptcy
is a judgment and will be listed for a period of up to
10 years after the discharge. You must wait 6 years to
file again or if your bankruptcy was dismissed you must
usually wait for 180 days to re-file.
