What is the Bankruptcy Process?

If you have decided to file for bankruptcy, it is a good idea to familiarize yourself with what you can expect to face in the weeks and months ahead.  Although the bankruptcy process will differ slightly depending on whether you are filing for Chapter 7 bankruptcy or Chapter 13 bankruptcy, in general the bankruptcy process will proceed as follows:

• In the majority of cases you will be required to complete a credit counseling course before you can file your bankruptcy petition.
• Once you have completed the credit counseling course the next step in the bankruptcy process is to file a petition with the bankruptcy court. This is the when the process formally begins.   After you file for bankruptcy your creditors will be notified and they will no longer be able to contact you for money.  A stay will also be placed on all other collection efforts.
• After you have filed your petition, you have 15 days to file another document with information pertaining to your assets, liabilities, income, expenses, etc.   A payment schedule is also required at this time if you are filing for Chapter 13.
• Next you will need to file a statement of intent in regards to your debts and assets. 
• Within 45 days of filing your petition, a meeting will be scheduled with your creditors.  You are required to appear at this meeting in order to testify to the accuracy of the information you provided in the petition.
• The Chapter 7 bankruptcy process ends with the discharging of your debts, generally four to six months after you filed the petition.  If you have filed for Chapter 13, the process will officially end after you have repaid your debts and completed the payment plan, three to five years after the petition was filed.

This outline is a general idea of what you will experience during the bankruptcy process. If you have questions, or if you would like a Long Island bankruptcy attorney at our office to provide you with more details about any stage of the bankruptcy process, please do not hesitate to contact Jacoby & Jacoby today!