Stages of a Chapter 7 Bankruptcy in Florida

If you are struggling financially and considering filing Chapter 7 bankruptcy, you have enough to worry about. While bankruptcy may allow you to discharge a good portion of your debt, or even all of it, the process may seem intimidating for those who have never been through it before. Preparing for the process is helpful, as it will let you know what to expect and ensure you have all the proper paperwork and documentation so there are no delays in your case. Below, our Fort Lauderdale bankruptcy lawyers explain the process so you are ready to move forward with it.

The Pre-Filing Stage

The pre-filing stage largely consists of meeting with your bankruptcy lawyer, making sure you have all your documents in order, and completing some of the mandatory requirements outlined by state and federal law.

The steps in the pre-filing stage are as follows:

• Meeting with your lawyer: You do not have to work with a Fort Lauderdale bankruptcy lawyer when filing, but it is strongly recommended that you do. Most bankruptcy lawyers will provide a free initial consultation. During this consultation, a lawyer will review your bankruptcy and non-bankruptcy options with you to determine if filing Chapter 7 is the best choice for your case. During this consultation, a lawyer will also inform you of the documentation you will need to collect and provide the lawyer with, so they can distribute it to the appropriate parties in your case.
• Credit counseling: The bankruptcy courts do not want borrowers filing bankruptcy just to get into trouble with debt again and perhaps need to restart the process. To avoid this, you must complete a mandatory credit counseling program. You must also take this course using one of the credit counseling agencies approved by the U.S. Trustee’s Office. The program only takes about one hour to complete, and you can complete it whenever it is convenient for you. Once you have completed the program, the provider will send you or your attorney a certificate of completion that you must include in your bankruptcy filing.
• Signing the petition: After you have completed the credit counseling program, you will likely meet with your lawyer once again. During this meeting, you can review the petition, statement of financial affairs, schedules, and creditors’ matrix to ensure they are accurate. If changes are necessary, your lawyer will make them and you then sign the petition and any other important paperwork.

The Post-Filing Stage

Once everything is prepared, your lawyer will file your petition electronically, along with any other important documentation necessary.

A number of important steps will follow this, and they include:

1. An automatic stay: After you file your petition, a bankruptcy judge will issue an automatic stay. This stay prevents your creditors from contacting you to try and collect on the debt, and from taking legal action. Some creditors may be provided relief from the stay but the majority of your creditors and debt collectors will be barred from contacting you. Your lawyer will send you a complete package of the documentation filed so you have copies for your own records.
2. Communicating with the trustee: Once you file your petition, the court will appoint a bankruptcy trustee to your case. The trustee will oversee the process and will essentially act as a middleman between you and the court. Your lawyer will provide the trustee in your case with all the necessary documents you are required to submit to the trustee, according to the amendments made to the Bankruptcy Code in 2005. Any communication between your lawyer and the trustee will also be sent to you.
3. The meeting of the creditors: After you file your petition, a meeting of the creditors is scheduled. During this meeting, the trustee will ask you questions about your financial situation, and the circumstances that led to you filing for bankruptcy. The trustee may also ask you questions about your statement of financial affairs or your schedules. The meeting must be held within 20 to 40 days after filing your petition. Usually, these meetings are held about 30 days after you file the petition. Your lawyer can represent you at this meeting and will inform you beforehand of the date, time, and location of the meeting. Your lawyer will also advise you of the typical questions the trustee may ask.
4. The financial management course: After your first meeting with the creditors, you must complete the pre-discharge financial management course. It is advised that this course is completed as soon as possible after the first meeting of the creditors. You can use the same credit counseling agency you used for your pre-bankruptcy credit counseling program. Once you have completed the financial management course, the agency will send your lawyer a certificate of completion that must be filed in your bankruptcy case.
5. The discharge: The purpose of a Chapter 7 bankruptcy is to discharge your debt, which means to legally eliminate them. Certain types of debt may not be able to be discharged, but you can likely discharge the majority of your debt. You should receive a discharge approximately 60 days after the first meeting of the creditors. There is an exception in some cases, such as if a creditor or the bankruptcy trustee objects to the discharge. However, this is not common.

Our Bankruptcy Lawyer in Fort Lauderdale Can Help You Through the Process

Filing for bankruptcy can bring you the relief you desperately need when you are struggling financially, but the process is not easy. At Loan Lawyers, our Fort Lauderdale bankruptcy attorneys can help you prepare for the process and fully explain every step along the way. We have helped thousands of consumers with their debt problems, and we want to put our experience to work for you, too. Call us today at (954) 523-4357 or fill out our online form to schedule a free consultation and to learn more about how we can help with your case.