The Bankruptcy Process

attorney If you have more debt than you can juggle, it is always wise to seek the advice of a bankruptcy attorney. Bankruptcy may not always be the best course of action, but if it is, here is an overview of the process.

Bankruptcy Process Overview

Review Your Options

Meet with an attorney to discuss what your options may be, whether it is to file bankruptcy or not and if so whether a Chapter 7, Chapter 13 or some other chapter is best for you.  There are rules about who qualifies for which bankruptcy, some of which are specific to the state in which you live.  A few commonly asked and basic rules are as follows:

  1. You can only file a Chapter 7 Liquidation bankruptcy once ever eight years and the time is counted from filing date to filing date.
  2. You have to have a regular stream of income to fund a Chapter 13 Debt Consolidation bankruptcy.
  3. You must list all assets you own at the time of filing.
  4. You must list all creditors you owe at the time of filing.
  5. You must complete a credit counseling course prior to filing your case. These are offered on-line and by telephone and the cost is usually $50.00 or less.

Provide Documents

Once you decide the type of bankruptcy you will file, you will be required to provide your attorney with documentation of various things like paystubs, bank statements, bills, tax returns, deeds, loan documents, etc.  Your attorney will need these items to prepare your bankruptcy schedules and statements that will be filed with the court.

Sign Bankruptcy Statements

You are required to sign your bankruptcy statements and schedules under penalty of perjury that they are true and correct.  Once signed, the attorney will file the documents electronically with the court.  The moment a bankruptcy case is filed the automatic stay goes into effect.  The automatic stay is the legal term that means all collection activities must stop (i.e. garnishments, foreclosures, repossessions, bank levies).

Attend the Meeting of Creditors

About four to six weeks after you file, you are required to attend a meeting of creditors.  A person called a Trustee will be appointed by the court to oversee your case.  At the meeting of creditors, the Trustee will ask you questions about your case under oath.  Your creditors can come ask questions as well.  Creditors have a period of time to object to the discharge of a debt or to object to you getting a discharge at all.  An attorney can go through the reasons why you might not be able to discharge a certain debt or why you can lose your discharge.

Complete a Bankruptcy Finance Course

You are required to complete a second bankruptcy course called a personal financial management course again offered online or by phone.  For a Chapter 7, you must complete it within 45 days after the meeting of creditors.  For a Chapter 13, you must complete it before the end of your repayment plan.  Approximately four to five months after filing a Chapter 7, you will receive the order from the court discharging the debts.  The discharge in a Chapter 13 is issued once all plan payments are completed which is usually anywhere from 36 to 60 months from filing.

If you need financial advice to deal with debt, call one of our offices today for a free, no obligation consultation.

Share This Page

Bond & Botes Law Offices

At Bond & Botes, we now offer full service bankruptcy consultation and filing over the phone or by video from the comfort and safety of your home or office. Please call 1-877-581-3396 or click here to setup your free phone or video consultation.

The lawyers at the Bond & Botes affiliated offices serve clients at offices in Anniston, Birmingham, Mobile, Montgomery, Opelika, Decatur, Huntsville, Florence, Haleyville and Gadsden, Alabama; Vicksburg, Hattiesburg and Jackson, Mississippi. Read our disclaimer here. You can view our Privacy Policy here.

Alabama Offices

Birmingham

2107 5th Avenue North
Age-Herald Building
Birmingham, Alabama 35203
Phone: (205) 802-2200


Shelby County Location
15 Southlake Lane, Ste 140
Birmingham, AL 35244
Phone: (205) 802-2200


Florence Location
121 S. Court Street
Florence, AL 35630
Phone: (256) 760-1010


Huntsville Location
225 Pratt Avenue NE
Huntsville, AL 35801
Phone: (256) 539-9899


Montgomery Location
311 Catoma Street
Montgomery, AL 36104
Phone: (334) 264-3363


Decatur Location
605 Bank Street
Decatur, AL 35601
Phone: (256) 355-2447


Haleyville Location
914 19th St.
Haleyville, AL 35565
Phone: (205) 486-3580


Gadsden Location
430-B Chestnut Street
Gadsden, AL 35901
Phone: (256) 485-0195


Opelika Location
216 South 8th Street
Opelika 36801
Phone: (334) 887-7666


Anniston Location
1302 Noble St #2C
Anniston, AL 36201
Phone: (256) 344-3559


Cullman Location
200 Second Avenue SW
Cullman, AL 35055
Phone: (256) 739-9866


Mississippi Offices

Jackson Location
5760 I-55 North, Ste 100
Jackson, MS 39211
Phone: (601) 353-5000


Hattiesburg Location
607 Corinne St, Ste B8
Hattiesburg, MS 39401
Phone: (601) 264-7200


Vicksburg Location
1212 Farmer Street
Vicksburg, MS 39180
Phone: (601) 353-5000

© 2024 by Bond & Botes Law Offices. All rights reserved. Disclaimer | Privacy Policy