You’ve already made the difficult decision to file for bankruptcy. You know it’s the right move for your circumstances. It won’t be long before you make your way to a bankruptcy attorney’s door for help filing.
But what comes after you file bankruptcy? What can you expect?
4 things to expect after filing your bankruptcy petition
Filing your bankruptcy petition triggers a chain of events that seeks to balance the rights of both debtors and creditors. Here is what’s likely to happen:
- An automatic stay will go into effect. This prohibits creditors from contacting you or pursuing collections while the stay is in place. This not only immediately provides relief for you from the aggressive phone calls and letters, it keeps any one creditor from making a grab for whatever they can get from you to the exclusion of your other creditors.
- A bankruptcy trustee will be assigned to you. In many cases, these are attorneys who specialize in the bankruptcy process. Your trustee will examine your documents to make sure that all of the information is complete.
- You’ll receive credit counseling. A personal financial management course is required before your bankruptcy can be discharged. This isn’t to punish you. Instead, it’s meant to help you avoid common “debt traps” that ensnare many consumers.
- There will be a creditor meeting. This may be the only time you meet your trustee. It’s called a creditor meeting because creditors have a right to attend — although it’s rare for any to actually show up unless there’s a major dispute over your right to file.
Eventually, you’ll receive a discharge on your bankruptcy and be able to move forward with your life, unencumbered by the overwhelming debts you have now.
De-mystifying the bankruptcy process helps make people less afraid to pursue this debt remedy. If you’re ready to learn more, please continue reviewing our blog and website for more information.