Bankruptcy Process & Timeline
The bankruptcy process begins when people realize that they are deep in debt and unable to manage their finances. People begin to feel frustrated after they receive repeated phone call and notices from creditors. This is generally when they decide to retain the services of a bankruptcy attorney.
Once someone decides that they want to file for bankruptcy, they will have to complete credit counseling 180 days prior to filing their bankruptcy petition. Credit counseling must be administered by an agency or individual who is approved of by the U.S. Trustee.
After completing credit counseling, the next step is to fill out bankruptcy paperwork. For some people, paperwork will be 30 to 60 pages long, which is why a bankruptcy lawyer like the lawyers at McCann, Ribstein & McCarty can be advantageous. Once the paperwork is completed, the lawyer begins the filing process.
30 to 40 days after paperwork filing, the person filing will have to attend a hearing that is presided over by the bankruptcy trustee. Their creditors will also attend this meeting to discuss the debt in question and courses of action. After this meeting, if the creditors file motions with the court, the debt will then be discharged within 60 to 75 days.
People who are thinking about filing for bankruptcy should always keep the following in mind:
-
90 days before a person files for bankruptcy, he/she must be a resident of the state in which he/she is planning to file for bankruptcy. This means that people must have resided in the state for at least 90 days in order to meet eligibility requirements.
-
On day 1 of the bankruptcy filing process, people will file their bankruptcy petitions with a U.S. bankruptcy court. The court will then issue an “automatic stay”, which will prevent creditors from contacting the individual. A case notice will be sent to all creditors the person owes debt to and a bankruptcy trustee will be assigned to the individual’s case.
-
15 days after the bankruptcy petition is filed, people will need to have filed their financial schedules (a court document that lists debts, assets and income). A Notice of Commencement of Case will then be sent to bankruptcy filers and their creditors. Creditors will then have a set amount of time to dispute the filing.
-
30 days after the bankruptcy petition is filed, people must submit a “statement of intention” which tells the courts whether or not people wish to keep their property. If people wish to surrender their property, they will have 45 days after their statement of intention is filed to do so.
-
4 to 6 months after the bankruptcy petition is filed, the person’s debts will be discharged if no counteraction is taken by the person’s creditors. If the person filed for Chapter 13 bankruptcy, then they will begin repayment to their creditors at this time.
If you are contemplating filing for bankruptcy, contact the McCann, Ribstein & McCarty Law Office to begin the process.
- Why a Bankruptcy Lawyer
- How to Choose an Attorney Types of Bankruptcy
- Chapter 7 Bankruptcy
- Chapter 13 Bankruptcy
- Chapter 7 vs. Chapter 13 Bankruptcy
- Bankruptcy Process / Timeline
- Bankruptcy Myths
- Benefits of Bankruptcy
- What Happens Next
- Alternatives to Bankruptcy
- Credit Counseling
- Foreclosure Defense
Proudly assisting all of South Dakota including the following Counties: Aurora County, Beadle County, Bennett County, Bon Homme County, Brookings County, Brown County, Brule County, Buffalo County, Butte County, Campbell County, Charles Mix County, Clark County, Clay County, Codington County, Corson County, Custer County, Davison County, Day County, Deuel County, Dewey County, Douglas County, Edmunds County, Fall River County, Faulk County, Grant County, Gregory County, Haakon County, Hamlin County, Hand County, Hanson County, Harding County, Hughes County, Hutchinson County, Hyde County, Jackson County, Jerauld County, Jones County, Kingsbury County, Lake County, Lawrence County, Lincoln County, Lyman County, Marshall County, McCook County, McPherson County, Meade County, Mellette County, Miner County, Minnehaha County, Moody County, Pennington County, Perkins County, Potter County, Roberts County, Sanborn County, Shannon County, Spink County, Stanley County, Sully County, Todd County, Tripp County, Turner County, Union County, Walworth County, Yankton County, Ziebach County
