What To Expect After Filing Chapter 7 Bankruptcy

After filing Chapter 7 Bankruptcy with a Riverside Bankruptcy Attorney, you may find yourself with lots of questions about what to expect.

To speak with an experienced bankruptcy attorney, call our office today at (951) 801-5570.

While every client’s situation is different, I have listed some of the more interesting questions below.

Why can’t I pay my mortgage/car payment/other bill online?

Debtors in bankruptcy are protected by the automatic stay. The automatic stay forbids creditors from pursuing or collecting money from Debtors while they are in bankruptcy. Because banks don’t want to be liable for violating the automatic stay, they often cancel online payments and make it difficult for Debtors to make payments. If you plan on keeping the item, you will need to contact the Creditor directly and make payment arrangements other than online payment.

Why did the credit card company close my account when I was in good standing and wanted to keep the card?

As soon as a creditor receives notice of Chapter 7 bankruptcy filing, they will likely stop all activity on the account and close the account. This is true even if you want to keep the card and were making regular payments. Your unsecured credit card debt is fully dischargeable and credit card companies regularly close these accounts without review. This is also true of a credit card you did not list on your schedules in the hope that you could use the account in the future. These companies perform regular credit checks and will get notice of the bankruptcy filing, even if you did not disclose it on your schedules.

Do I have to pay a creditor if I did not list them on my original petition, schedules, and statements?

No, the bankruptcy code allows you to amend your schedules and statements to include creditors at any time while the bankruptcy is open. Furthermore, regardless of whether your creditor is listed in the paperwork, the bankruptcy discharge applies to all creditors whether they are listed or not.

If you are considering filing bankruptcy, talk to the experienced Riverside bankruptcy attorneys at De Novo Law Firm. We can be reached at (951) 801-5570.