Once a debtor has filed a Chapter 7 bankruptcy the post filing processes can be a little vague and mysterious. Once a debtor files a bankruptcy the automatic stay is enacted. The automatic stay disallows almost all creditors from trying to collect on debts and prohibits them from foreclosing on homes and repossessing vehicles until the the is discharged or until they file a motion to life the automatic stay. Generally the debtor will not have to worry about most unsecured debt from this point forward because the creditor will not be able to collect until the debt is eliminated in the bankruptcy. The automatic stay also allows time for the debtor to get their living situation and vehicle affairs in order so that they can either try to save a house from foreclosure or a car from being repossessed. It will also allow time to find a new residence or a different car if the properties are going to be surrendered in the bankruptcy.
About one to two weeks after the bankruptcy is filed the debtor will get a letter from the trustee informing the debtor of the 341 meeting of the creditors. The 341 meeting is usually scheduled 21 to 40 days after the bankruptcy filing date. The trustee will look over the debtors Chapter 7 petition to make sure all of the information is accurate, to find any non-exempt assets that can be liquidated to pay off a portion of the debt, and to check for fraud and abuse of the bankruptcy system.
In most instances the 341 meeting will be the only proceeding that the debtor will attend. After the 341 meeting, the debtor has 45 days to take and file proof that the debtor took the financial management class. During this time, creditors have 60 days after the 341 meeting to object to the debtors discharge. If the creditors do not have sufficient grounds to object to a discharge, the debtors liability to the creditor will be discharged.
Pre-filing and post-filing bankruptcy processes can be daunting to bankruptcy filers as well as inexperienced attorneys. In order to make sure that the debtor arrives at a discharge for all debts that are dischargeable under the bankruptcy code, the debtor should hire an experienced bankruptcy attorney to explain the benefits and disadvantages to filing for bankruptcy and to be a strong adversary on the debtor’s behalf throughout the subsequent processes.
