Dothan, Alabama
111 Adris Place
Dothan, AL 36303
(334) 673-0100

What Happens After Filing a Chapter 7 Bankruptcy October 16, 2018

Dothan, Houston
What Happens After Filing a Chapter 7 Bankruptcy , Dothan, Alabama

After deciding that bankruptcy will be your most effective solution for achieving debt relief, you will need to determine which chapter to file. This will largely depend on how much you earn and the type of debt you have. As long as you meet the income requirements and the majority of your debts are unsecured, a Chapter 7 bankruptcy is likely to provide you with the best chance for getting a fresh financial start. However, before you begin the filing process, it’s important to know exactly how a Chapter 7 works. Here is some insight into what will happen once the petition has been submitted.

What to Expect After Filing a Chapter 7 Bankruptcy 

The Automatic Stay 

As soon as you file the bankruptcy paperwork, an automatic stay will go into effect. This will temporarily prevent creditors from continuing their efforts to collect what you owe. In turn, even if they have a lawsuit pending against you or judgment from the court, they will not be able to take any action, such as garnishing your wages or foreclosing on your house.

Chapter 7 Trustee 

Next, you will be assigned a bankruptcy trustee. This is because your assets become part of a bankruptcy estate when you file for Chapter 7, and the trustee is in charge of overseeing the estate. It’s their duty to examine all of the documents you file to make sure you’ve correctly listed all of your property, so they can figure out if there are any nonexempt assets that can be sold to provide funds to the creditors. 

Meeting of Creditors 

chapter 7 bankruptcyAnother responsibility the trustee has is to hold a meeting of creditors. During this meeting, you will be sworn in and asked a series of questions about your assets, finances, and bankruptcy paperwork. Your creditors are also given the opportunity to attend and ask any questions they might have. In most Chapter 7 bankruptcies, this is the only time a debtor will need to go to court.

Property Assessment 

After the meeting of creditors, your trustee will decide whether or not you have nonexempt property that should be sold for the benefit of the creditors. If so, you will be required to surrender these assets. In the event you don’t have any property that falls in the nonexempt category, the trustee will report this to the court. Each state has a long list of exemptions that allow most Chapter 7 bankruptcy petitioners to keep their assets.


If you are interested in learning more about the Chapter 7 bankruptcy process, contact The Gil Law Firm. Since 2000, their seasoned bankruptcy attorneys have remained committed to providing residents in the Greater Dothan, AL, area with quality counsel and representation. After carefully assessing your debts and finances, they will help identify which bankruptcy type is most suitable to file and walk you through the steps from start to finish. Call (334) 673-0100 to schedule a consultation, or visit them online for more information about the different options available. 

Other Announcements, Events and Deals from The Gil Law Firm
How to Talk to the Claims Adjuster After a Car Accident Injury, Dothan, Alabama
If you were hurt in a car accident that wasn't your fault, you may have grounds for a personal injury claim. Since insurance adjusters are trained to find even the smallest reason& more
What’s the Difference Between SSI & SSDI?, Dothan, Alabama
For individuals living with a disability, receiving financial benefits through applicable programs can make all the difference in maintaining a good quality of life. The Social more
What Does a Bankruptcy Trustee Do?, Dothan, Alabama
Individuals who file Chapter 7 or Chapter 13 bankruptcy are expected to cooperate with their assigned trustees. This person oversees and represents the estate in question, so more
What Mental Impairments Qualify for SSDI Benefits?, Dothan, Alabama
The Social Security Administration awards disability insurance benefits to individuals suffering from mental disorders as well as physical disabilities. In both cases, more
How to Build a Strong Slip & Fall Case, Dothan, Alabama
If you were recently involved in a slip-and-fall accident, you might be interested in filing a personal injury claim. The law protects victims in these cases, but before you more