The steps of a Chapter 7 bankruptcy casePosted on September 15, 2016 by Michael Hoverson
Declaring bankruptcy can be intimidating, especially if you’re not familiar with everything that’s involved in the process. Fortunately, in Minneapolis, you can get expert bankruptcy help from a number of qualified sources. But before you seek that help, it’s best to have a basic understanding of the process you’ll go through in a Chapter 7 bankruptcy filing.
- You must get credit counseling within the 6 month period prior to filing for bankruptcy from an agency approved by the United States Trustee’s Office. This can be done with an online course.
- File your bankruptcy petition, financial information, and income/expenses form to prove you can pass the qualifications required to file a Chapter 7 bankruptcy.
- After you file your paperwork, the court will appoint a trustee to oversee your bankruptcy. They will review your paperwork and take possession of your non-exempt property to disburse to your creditors. In most cases all your property is exempt (protected) and not subject to the trustee taking from you.
- A “341 meeting” of your creditors will take place, at which time you will answer questions about your finances and bankruptcy forms. You will be under oath during this meeting, which typically is short.
- The trustee may ask you for additional documents to substantiate assets and other financial information set forth in your petition and schedules.
- The trustee will then determine if there are any liens to avoid, transfers of assets to pursue, or if any assets are to be administered.
- Your attorney will help you with your secured creditors, those with collateral such as a mortgage on a home or a security interest in an automobile, in which you will continue to pay if you desire to keep the collateral; or, if you do not want to keep the collateral, you will surrender the property to the creditor.
- After filing for bankruptcy, but before your bankruptcy is discharged, you must take a debtor’s education course. After doing so, you will need to file a Form 423 Certification About a Financial Management Course with the court.
- In most cases you will be granted your discharge 90 days after you filed for bankruptcy.
- Within a few weeks after you receive the notice, your bankruptcy case will be officially closed, allowing you to move forward with your life.
Hoverson Law Offices proudly serves the city of Minneapolis and surrounding Minnesota communities.