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How does the bankruptcy process go?

When I conduct my free consultations, I ensure to explain the whole bankruptcy process to my potential clients so that they can understand what they are getting themselves into.  As you continue to read below, you will see get a snapshot of what to expect so that you can be prepared to enter into the California Chapter 7 bankruptcy process.

1)  Gathering your documents:  First, all  your financial information from the last six months need to be gathered to see if you qualify for filing for chapter 7 bankruptcy, which eliminates most all of your debts.  Your financial data will be very important for filling out bankruptcy forms to the bankruptcy court.  If the petition is incomplete with information, the court may dismiss your bankruptcy case.  We have a pretty easy bankruptcy questionaire that helps us to gather your necessary information, and it usually takes 15-20 minutes to complete.

2)  Obtain Credit Counseling Certificate:  When you hire our bankruptcy attorney to handle your case, Attorney Liverpool informs you that you must receive a credit counseling certificate on your own by completing a credit counseling with a credit counseling agency approved by the U.S. Trustee pursuant to 11 U.S.C. § 111 within 180 days prior to filing your bankruptcy petition.   It is a good idea to complete this counseling online.  It costs around $5.  Remember to obtain your credit counseling certificate and send it to us so that we can include it in your bankruptcy petition.

3)  Prepare Court Petition:  Preparation will be done by our Los Angeles Bankruptcy attorney.  She will then send the petition to you for your review so that you can give final approval before filing it with the court.

4)  File Petition in Court:  Then we will file the case with the local bankruptcy court.

5)  Trustee 341(a) Hearing:  Once your petition has been filed, the trustee of your bankruptcy estate will, within 30 to 45 days since filing your petition, schedule a hearing where you, your bankruptcy attorney,  the trustee, and your creditors are to be present to ask questions but mostly to varify the truth of your filed information.  Most of the times, your creditors do not make it to the hearing.  In consumer bankruptcy case, this hearing is rather simple.  Court wants to mostly make sure that you are not abusing the bankruptcy law by having fradulent transfers prior to filing the petition.  The trustee’s job is to liquidate (sell) your properties beyond your exemption amount to pay off unsecured creditors.  You will also be given an opportunity to pay off or pay in a payment plan your debt if you would like to keep your asset in case your asset value excceds the exemption value. After your successful 341(a) hearing, YOUR DEBT WILL BE DISCHARGED IN OR AROUND 3-5 MONTHS FROM THE HEARING!

6)  File Financial Education Certificate: Congress, through the 2005 Amendments to the Bankruptcy Code, wanted to make sure that debtors do not repeatly file bankruptcies by rquiring a mandatory financial education course approved by the U.S. Trustee.  This is a post filing education and will require your filing number.  Your debt will not be discharged unless you complete course and provide the certificate to your bankruptcy attorney to provide to the court.  This course costs approximately $12.50.

So when you are ready to get the bankruptcy process started, contact the Law offices of Chirnese L. Liverpool at (818) 714-2200.

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