The Steps Of Bankruptcy

Step 1: Filing the Bankruptcy Petition: You must file a petition with the court. This is a legal document that says you want to file for bankruptcy. You will need to provide information about your address, prior bankruptcies, and type of bankruptcy that you are filing. Be sure to have records and any documents organized before you file the petition.

Step 2: The Meeting of Creditors: You will have to tell the court and your creditors about your income, expenses, assets, and debts. You will also have to answer detailed questions about your finances. This is called the meeting of creditors. At the meeting of creditors, the debtor is required to appear before the trustee to answer questions regarding the bankruptcy case. The trustee may ask questions of the debtor, and any creditor may ask questions of the debtor. The debtor must answer questions truthfully. The debtor is under oath at the meeting.

Step 3: The Trustee: A trustee will be appointed. A trustee is a person that is authorized by the court to investigate the financial affairs of the debtor. In a chapter 7 case, the trustee is responsible for the management of the bankrupt’s estate, including the collection and distribution of money in the estate. The trustee will take charge of your property and the distribution of non-exempt assets. The trustee will try to get as much money as possible for your assets to pay to your creditors.

Step 4: The Confirmation Hearing: In a chapter 13 case, if the court agrees that your debts are too much for you to pay back, the court will issue a bankruptcy order. The order is called the confirmation order. At the confirmation hearing, the bankruptcy judge will decide whether to make the bankruptcy plan official. The judge will base his or her decision on whether the plan meets the requirements of the Bankruptcy Code. The bankruptcy trustee typically presents the creditor’s case at the hearing. The bankruptcy trustee must explain the advantages of confirming the plan and explain any risks to the judge.

Step 5: The Confirmation Order: A confirmation hearing is an opportunity for a judge to confirm that the debtor’s proposed plan of reorganization is fair and equitable to all the creditors of the case. A confirmation hearing is held after a proposed plan of reorganization has been filed with the court, but before the court approves the plan.

Step 6: The Debtor Education Course: A debtor will have to take a course about how to manage money. This is called the debtor education course. A debtor education course is a requirement of the bankruptcy law that must be completed by all debtors after filing a bankruptcy case. The debtor education course is designed to help debtors understand the basics of personal bankruptcy.

For more answers to your questions about bankruptcy, contact an Elk Grove bankruptcy attorney at our office by calling 916-459-2364.