Key Events from Filing the Papers at the Bankruptcy Court to Discharge.

key events

New Bankruptcy Law taking effect on October 17, 2005: You must have finished an approved counseling course within the 6 months prior to filing.

Day #1
The Bankruptcy documents are filed with the Bankruptcy Court.
There is an immediate stay so that most actions by creditor are prevented, wages cannot be garnisheed, legal actions cannot be continued.


Day #14
Creditors are advised by the clerk that a petition has been filed.


New Bankruptcy Law taking effect on October 17, 2005: Debtors filing Chapter 7 or Chapter 13 bankruptcy, must provide to the trustee, at least seven days prior to the 341 meeting, a copy of a tax return or transcript of a tax return, for the period for which the return was most recently due.


Day #20-#40
A Meeting of Creditors is held at the Court ("The 341 meeting").
The debtor must attend this meeting.Creditors can attend but usually do not attend the meeting. If they attend they usually only have a few minutes to ask questions. The trustee assigned to the case presides. The meeting is either tape recorded or recorded by a court reporter. The trustee asks you questions under oath such as:

• Did you read the schedules before signing? Did you list all of your assets? Did you list all of your debts? Are the schedules accurate? Do you want to make any corrections to the schedules? Are your cars insured?

• Have you destroyed your credit cards?

The trustee either orally, or by giving the debtor written information, will ensure that the debtor is aware of:

The effect on credit history; the effect of receiving a discharge; the effect of reaffirming a debt; the ability to file a petition under a different chapter.

Note: The typical 341 meeting lasts about 4 to 5 minutes.


Day #20-30 and After
The trustee will sell any non-exempt assets available for the benefit of the creditors. 
The trustee has the authority to:

• pursue causes of action (lawsuits belonging to the debtor; set aside preferential transfers made to creditors within 90 days before the petition;

• undo security interests and other pre-petition transfers of property that were not properly perfected.

Day #30 (after the 341 meeting)

New Bankruptcy Law taking effect on October 17, 2005: Debtors must perform a statement of intent as to secured property (such as a vehicle) within 30 day after the date set for the first creditors meeting. Failure to either redeem the property or reaffirm the debt within 45 days after the S. 341 meeting results in termination of the automatic stay and allows the creditor to exercise its remedies under the law, usually by taking back the asset.


Day #90 (after the 341 meeting)
Unsecured creditors must have filed their claims.


New Bankruptcy Law taking effect on October 17, 2005:You must have finished an instructional course concerning personal financial management in order to be eligible for a discharge.


Day #60-#90 (after the 341 meeting)
The debtor is discharged and all debts (with some exceptions) are written off.


New Bankruptcy Law taking effect on October 17, 2005:You must have finished an instructional course concerning personal financial management in order to be eligible for a discharge.


Day #60-#90 (after the 341 meeting)
The debtor is discharged and all debts (with some exceptions) are written off.

More than 99% of the bankrupts are discharged.


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