Filing for bankruptcy can be a bold step toward freeing yourself of unmanageable debt, but understandably, the process can be pretty intimidating. Whether you’re filing for Chapter 7 or Chapter 13, knowing what to expect can provide peace of mind and help you start rebuilding your financial reputation. Here’s a brief guide to the process.

What to Expect During Bankruptcy

Notification of Creditors

Once the clerk of the court has accepted your petition and a trustee has been assigned to your case, notices will be sent to all of your creditors. In addition to advising creditors of their rights, the letters also include an automatic stay ordering them to immediately cease all collections activity, including phone calls, wage garnishment, and lawsuits.

The Meeting of Creditors

Every bankruptcy case includes a meeting of creditors, in which representatives of your creditors and the trustee may ask questions about your assets and finances. The creditors themselves rarely show up, however, so unless there were mistakes in your paperwork, the meeting may only last five minutes.

Taking the Credit Counseling Course

The law also requires everyone seeking debt relief to take a financial management course to prevent future debt issues. Once you’ve taken the class, your case should be discharged within 90 days if you’re filing for Chapter 7 or at the end of your payment plan if you’re pursuing Chapter 13.

What to Do After Filing

Bankruptcy gives you the opportunity to begin rebuilding your financial life, a project you can begin immediately after your case is discharged. First, get a copy of your credit report and check to ensure everything is correct, then start building up your savings. Ideally, you’ll want enough on hand to manage three to six months of living expenses. After a few months, you should be able to qualify for a store credit account or a secured credit card, which allows you to demonstrate that you can successfully manage your finances, eventually bringing your credit score up.

For nearly 30 years, The Law Office of J. Baron Groshon has helped those under significant debt find freedom for the future. With offices in Charlotte, Concord, Gastonia, and Lake Norman, these compassionate lawyers can provide legal guidance and tailored solutions to clients across North Carolina. Visit their website for more on the benefits of bankruptcy, follow their Facebook for news and updates, or call (704) 342-2876 to explore your debt relief options.