Chapter 7 bankruptcy is the most common form of debt relief for those in debt but most clients don’t know what to expect in bankruptcy. The following is an overview of the bankruptcy process at De Novo Law Firm in the Central District Court of California (the court that oversees bankruptcy in Riverside, Corona, San Bernardino, Los Angeles, and Orange Counties).
Every potential client that contacts our office will undergo a thorough analysis to determine whether the client qualifies for bankruptcy and whether that is the best option. Our attorney reviews each case individually and can answer any questions that clients have about the process. Each client is then asked to complete a questionnaire of information about their individual financial situation as well as documents to support this information. The courts also require each debtor to complete a pre-bankruptcy course on credit counseling. There are many providers who perform this service but we can recommend a service for you to complete online or over the phone.
Using the information you provide our office, our attorneys then prepare Chapter 7 petition, schedules, and statements reflecting your information to be filed with the court. Our attorneys then meet and confirm the filing information and the clients sign the documents to be filed with the court. Our office will also review what to expect when we meet the trustee at the meeting of creditors.
Once the documents are signed, our office then files the documents with the court electronically and the court assigns a date for a meeting of creditors (also known as a 341 meeting). Before the meeting, our office provides the trustee with all requested information and our attorney attends the meeting along with the client. The trustee will ask a set of questions about the bankruptcy during a short session. Creditors may also ask questions at the hearing but it is not common that they appear at this hearing.
After the questions, the trustee will usually conclude the meeting and no further appearance is required by the clients. Creditors are given an additional time to object to the chapter 7 discharge until 60 days have passed from the meeting of creditors. At this point, the court will issue a discharge meaning all eligible debts have been forgiven.
This is a typical example of what to expect in bankruptcy although there may be additional work that needs to be done. For example, if you own a car and want to keep the car despite having a loan you may need to reaffirm the debt. This requires separate action that needs to be filed after the bankruptcy paperwork is filed with the court. If you have questions about bankruptcy, the process, or whether you qualify to file Chapter 7 bankruptcy, contact us at (951) 801-5570.