What Happens When You Declare Bankruptcy?


Petition to file for bankruptcy

A common question that we get asked all of the time is “What happens when you declare bankruptcy?”

When a person or spouse files for bankruptcy, the first thing that happens is a notice goes out to all of the creditors. The notice notifies the creditors that the person has filed for bankruptcy and that they are represented by an attorney.  It also tells the creditor that they have to immediately stop any collection activity against the person who just filed for bankruptcy. This includes stopping harassing phone calls, lawsuits, and other collection activities. 

Essentially the filing of bankruptcy puts up a giant stop sign to the creditors. After all of the bankruptcy documents are filed, a hearing called the 341 Meeting of Creditors is scheduled. 

At this meeting, the Debtor is asked a series of questions regarding their: 

  • finances, 
  • income, &
  • assets. 

Your attorney is with you at this hearing. It is important to have an experienced attorney with you. Your attorney will then be able to guide and prepare you for the questions to ease the stress that comes along with any court appearance. 

About 60 to 90 days after your hearing, your case will be discharged if it is a chapter 7. If you filed a chapter 13, you will be making monthly payments to the chapter 13 trustee under your repayment schedule.  

Experienced attorneys can make this process less burdensome and stressful. 

The most important part of any attorney client relationship is communication. Our team provides all of our debt relief clients with fast and efficient communication regarding their case. 

We prepare all of our clients for each step of the process. We have found that by being able to meet with the attorney who is going to handle your case from start to finish allows us to provide the highest level of legal service and allows our clients to know that we have their back through the entire process.

If you have any questions about the topic discussed in this article, or any bankruptcy law matter, please give us a call at Bononi & Company 724-972-4180