Sacramento Bankruptcy Attorney serving Mather describes the step by step process of obtaining Chapter 7 bankruptcy relief

Here’s the basic question people have when they enquire about the option of filing personal bankruptcy: “What information and documents do I need to gather, and what is the usual process I’ll go through in filing [Chapter 7 or Chapter 13] bankruptcy?”

Here’s my answer:

Attend a credit counseling course at an approved credit counseling agency.  This is the first step and a requirement under the new bankruptcy laws that went into effect in 2005.  And, besides being a legal requirement, it’s a good basic education.  Find an approved agency, and make an appointment to familiarize yourself with forms of debt relief and financial tools such as budgeting; become informed about deft relief and the role an attorney plays if you choose to file bankruptcy.

What are the possible next steps?

1. Meet with a bankruptcy attorney to draft documents to file with court, listing all your income, debts, and assets.
   1. Income. Provide proof of income for the previous six months in order to apply the “means test” to determine eligibility.
   2. Debts.  List every debt, no matter how big or small.  Debts not listed on your form by the date you file, will not be discharged by your bankruptcy proceedings, and will still be owed in full.
   3. Assets.  Determine with the attorney which assets are exempt in a bankruptcy. Again, these could vary according to your state’s law.
2. File your bankruptcy documents with the bankruptcy court with jurisdiction in your case.
3. Attend a short meeting with the bankruptcy trustee.   This meeting allows the trustee to review the accuracy and completeness of your petition, and give any of your creditors a chance to object to any of your proposed actions regarding discharge or repayment of your debts.  In most cases, your creditors will not even attend this meeting.
4. Attend an additional personal financial management class. Once again, this certified class, taken in person, over the phone, or online, will assure that you understood the proceedings, and that you will be knowledgeable about the best courses of action to take in order to get the most advantage of the fresh start that bankruptcy provides.  There may be a short exam to pass in order to complete the discharge of your case.  For our bankruptcy clients we will schedule you for the on-line credit counseling and financial management class.
5. Obtain the final discharge of debts from the bankruptcy court – some debts will be completely discharged which means these former creditors are forever stopped from making further collection attempts.

An experienced bankruptcy attorney can help you review your situation, to help you discharge as much debt as allowed by law, while retaining assets whenever possible.  Your lawyer will help you avoid mistakes that could diminish or even ruin your chances of a positive outcome.

Please contact our Sacramento office serving Mather at 916-313-9069 or via email at info@california-bankruptcyattorney.com