If you are considering filing for bankruptcy, you know it can provide the fresh start needed to re-establish your financial health, but you may not understand the details of each step. Talking to a bankruptcy lawyer will give you a better sense of what is involved in filing and navigating this complex legal process. This guide is designed to help you understand the stages of filing for bankruptcy and how they can impact your financial status.

Before Filing

Before you file for personal bankruptcy, creditors may be harassing you for payment. Fortunately, these calls and letters will stop once you complete your petition. Your lawyer will help you assess your options to determine whether a Chapter 7 liquidation or Chapter 13 debt reorganization is the best approach to your situation.

During this discussion, it is also critical that you consider the effects declaring bankruptcy will have on your future. If you’re certain you can overcome the repercussions of filing and you will not accumulate more debt once your slate is wiped clean, it’s time to move forward with your petition.   

During the Proceedings

When you file for bankruptcy, the court will impose an automatic stay, which is a federal injunction that prevents creditors from harassing you and prohibits them from taking action to collect payment.

A little more than a month after you file, you will attend a creditors’ meeting during which an impartial bankruptcy trustee will review your petition and ask you questions about the information you provided to determine the document’s accuracy.

About six weeks after this meeting, you will receive either a notice of discharge, which releases you from your obligation if you filed for Chapter 7 bankruptcy, or a notice of confirmation, which shows the court approves of your Chapter 13 restructuring plan.

After Filing

Declaring bankruptcy will affect your credit history, but most people can secure new lines of credit within a few years of filing. Additionally, the proceedings only remain on your credit report for seven to 10 years, depending on the chapter under which you filed.

If you are struggling to pay down your debts and want to learn more about bankruptcy proceedings, turn to The Law Office of Mark Briden in Redding, CA. Visit the firm online to learn more about their experience in bankruptcy law and call (530) 222-1664 to schedule a free consultation today.