Filing Chapter 7 - Getting a Fresh Start!
The case starts by filing the official bankruptcy petition, schedules and a statement of financial affairs. These forms ask that you lists everything you own and all of your creditors, along with some recent financial history. This is the most important and most time consuming part of a bankruptcy filing.
It is very important that you list every creditor with an accurate mailing address. You must list all of your debts, even if the debt is non-dischargeable, and even if you intend to pay the debts.
All of the schedules are signed by you under penalty of perjury. You must be very accurate and disclose EVERYTHING. After your documents are prepare, it is YOUR RESPONSIBILITY to actually read and understand what you have disclosed (or failed to disclosed) in those documents and to correct any “oversights” promptly. The consequences of not being candit and truthful on your schedules may not only cost you your discharge, but may also subject you to criminal prosecution.
In most cases, the Automatic Stay goes into effect upon filing the petition, creating a legal barrier to collection actions by creditors.
The court appoints a trustee and gives notice to all creditors listed in your schedules. You will get a copy of that notice at the same time it is sent to creditors.
FIRST MEETING OF CREDITORS
You will be required to appear at a meeting conducted by a trustee. This meeting is called a Meeting of Creditors. But some people called it a 341 meeting because it is in Section 341 of the Bankruptcy Code that the meeting is required. The trustee will ask you questions under oath about assets and liabilities. (A list of questions the trustee may ask can be obtained in our Bankruptcy Process page.) Creditors can also question you on those subjects, but seldom attend the meeting. You are required to have proof of identification, photo ID, and Social Security Number, at the meeting. When going to court, dress in appropriate business attire and arrive early. It is a good idea that you watch the video about the 341 Meetting before that date arrives. You will find the link in our
Bankruptcy Videos page.
To find out what happens AFTER THE FIRST MEETING OF CREDITORS click
here.