The Process of Bankruptcy
Are you considering filing for bankruptcy? Knowing how the bankruptcy process works can help you determine if this debt relief option is the best way to remedy your financial condition. Before a bankruptcy petition can be filed, you will need to take the
means test, which will establish your qualifications for
Chapter 7, the liquidation of non-exempt assets. If test results show that you have sufficient disposable income to pay back creditors, you will be required to file for
Chapter 13. In a Chapter 13, your payment plans to creditors will be restructured so that they can be paid off within 3 to 5 years. You will also need to take a credit counseling class from a government-approved organization which are offered online or by phone. The next step in the process is the preparation and submission of your bankruptcy petition.
Once your petition has been submitted to the court, an automatic stay will be issued which will stop:
- Harassing phone calls and letters from creditors
- Legal actions to reclaim your home
- The garnishing of wages
- The repossessing of vehicles and other personal property
If you are filing for bankruptcy under Chapter 7, a meeting with creditors will be organized by a bankruptcy trustee. At the meeting, your creditors will be given the opportunity to ask you questions regarding your financial condition. After the meeting, the trustee will liquidate your non-exempt assets and distribute the proceeds to pay off your debts, and any remaining debts will be discharged. In a Chapter 13 bankruptcy, a hearing will be held to review your petition and payment plan recommendations. Before your bankruptcy case is officially concluded, you will need to take a financial management class. A bankruptcy attorney can give you additional information regarding the bankruptcy process and should be consulted if you plan to file a petition.
Dodge & Vega, PLC is a high quality bankruptcy law firm that has helped many clients successfully complete the bankruptcy process. We have a comprehensive understanding of bankruptcy laws and procedures, and will manage your case from start to finish with dedication and integrity. Our firm is a member of National Association of Consumer Bankruptcy Attorneys (NACBA), American Bankruptcy Institute, American Bar Association and Arizona State Bar. We are proven litigators that can help you get out of debt and accomplish your financial objectives.