I was upset to hear recently from a friend who was facing bankruptcy
chapter 7 Placentia and even more upset when he mentioned a mutual
friend who had just gone through a bankruptcy chapter 13 Placentia. This
second friend had handled his case by himself and been successful so my
friend was thinking about filing for chapter 7 bankruptcy Placentia
without professional help.
I was roped in to help with the research and must admit that I found
reading up on bankruptcy laws chapter 7 Placentia to be very boring. In
my opinion bankruptcy laws chapter 13 Placentia, or chapter 7 and
anywhere, should be left for the attorneys to deal with. I did learn
quite a lot and was happy to be able to assist my friend who went on to
do well in his case.
What Happens After I File For Bankruptcy?
The Bankruptcy Court sends out a notice of your bankruptcy filing to
all of the creditors listed in your schedules. This notice advises the
creditors that you have filed for protection, which chapter you filed
and advises them that an “automatic stay” is in effect, preventing
creditors from pursuing any further efforts to collect the debt. This
would include staying a foreclosure sale, wage garnishment and even a
civil court proceeding or trial. Criminal cases are not stayed, nor are
child support hearings. Also on the notice is the date and time of your
meeting of creditors and/or confirmation hearing with the court, as well
as the deadline for taking certain action against creditors. Prior to
the 341 meeting, your bankruptcy attorney will discuss any potential
issues and help you prepare for any questions that the trustee is likely
to ask.
At the meeting of creditors, a Trustee, appointed by the court, will
examine you under oath as to the accuracy of the information contained
in your schedules. Creditors have a right to be present at this hearing
and may ask you questions pertaining only to your assets and
liabilities, income and expenses. If they wish to challenge a particular
debt from being discharged, most creditors are required to file an
adversary proceeding within sixty days of the meeting of creditors in a
Chapter 7 case, or the debt is discharged. There may be debts that will
survive your bankruptcy, such as student loans, personal tax liability
and domestic support obligations.
Creditors who are owed money
on a home or car are secured creditors and possess certain rights that
unsecured creditors (such as credit card companies) do not possess. For
example, they have the right to foreclose on a home or repossess a car
if payments are not made in accordance with the contract. A debtor who
is behind on these payments can file under Chapter 11 or 13 and propose a
plan to repay the arrears. However, in all cases, the debtor must
continue to make the current monthly payments to keep the property. I
would have to say that it is advisable to hire chapter13 attorneys
Placentia.