Three Major Bankruptcy Milestones

In today’s fast paced society, where information is available to us simply by performing a google search on a smartphone, it is only natural to want fast results. And, if you are having money problems, this is all the more true because the faster you can get out of a bad financial situation, the sooner your stress level will decrease. It only makes sense to wonder how long things will take when you decide to do something about your debt situation, so you can start fresh with a new budget and the ability to stick to what you’ve put down on paper.

If you have decided to file bankruptcy to alleviate financial pressure, it is helpful to know what to expect. Three of the major milestones in any bankruptcy case are:

•         The meeting of creditors, which is the first hearing that takes place in a bankruptcy case. At this hearing there will not be a Judge present, but the Trustee who is assigned to your case will handle the proceeding. The Trustee will ask you to bring things like proof of income with you, as well as copies of your mortgage and titles to your cars. Creditors can also be present at this hearing, but their involvement is limited to asking you what your intent is regarding their debt. Most times the answer is that you intend to surrender the collateral back to the lender, or that you plan on keeping it and making the payments either voluntarily or by signing a reaffirmation agreement.

•         The entry of discharge, which is a notation on your case docket that the case has discharged. Entry of discharge is the goal of every case, because it is the legal finding that the debts you have are no longer due. A discharged debt is a debt that cannot be collected on, and it is a debt that is no longer considered to be due. Debts that have been reaffirmed are not discharged, so those obligations will still have to be paid after your bankruptcy case is over.

•         The closing of your case, which is just an administrative function that finalizes the matter. Once a case has been discharged and closed, it is considered final and the Trustee’s duties come to an end.

Most debtors need only appear at the meeting of creditors (the 341 meeting), but there are instances where your appearance may be required again. If you have questions about bankruptcy and what to expect if you file, call our office for answers.

For more information about bankruptcy, contact us today at www.law-ri.com. We will help you come up with solutions that work for your family, and have multiple locations where we schedule appointments so you can make a choice that is convenient for you.