Learn About the Bankruptcy Process

How Filing for Chapter 7 or Chapter 13 Works

The bankruptcy process may seem very complicated and challenging. Nevertheless, with the help of a bankruptcy attorney in Encino at Price Law Group, you may proceed through your bankruptcy with the confidence that you are doing the right thing and that it is being done correctly.

Contact the Price Law Group online or call (866) 210-1722 to schedule a consultation. Se habla Español.

Types of Bankruptcy

There are two main forms of bankruptcy that individuals and families use: Chapter 7 and Chapter 13. One would choose Chapter 7 bankruptcy if they are seeking to discharge debt. Under Chapter 13 bankruptcy, you agree to a payment plan over three to five years to pay off your debts while under bankruptcy court protection.

What is the Chapter 7 Process?

There are generally 6 steps when it comes to filing for Chapter 7 Bankruptcy:

  1. 180 days before filing, you must complete a credit counseling course that has been approved by the U.S. Bankruptcy Trustee. Courses are available online or via phone.
  2. File for your bankruptcy forms with the assistance of an experienced bankruptcy attorney. Doing this will trigger an automatic stay, which will notify your creditors to cease any collection against you.
  3. Send a copy of your most recent tax return to the bankruptcy trustee assigned to your case. If they need additional information, they will request it.
  4. Within 30 to 45 days after the filing, attend the meeting of creditors. This is where the bankruptcy trustee will interview you about your petition and the creditors may ask some questions, however, it is rare for them to appear. This meeting is typically very short and lasts 5 minutes.
  5. You must attend a mandatory budget counseling no later than 60 days after the creditor’s meeting. When completed, you will receive a certificate. Send a copy to the bankruptcy court to let them know this was completed.
  6. 60 - 75 days after the creditors’ meeting, the bankruptcy court will send you a letter notifying you that your debts have been discharged. The trustee will then arrange with you to liquidate your nonexempt property.

The Chapter 13 Process

Below are the steps for Chapter 13 bankruptcy:

  1. Consult with Attorney.
    Go over your debt situation with an experienced lawyer and he or she will advise you of your options. We professionally prepare your documents.
  2. File the Bankruptcy.
    At Price Law Group, we will file your bankruptcy. Your creditors are notified and must cease any collection action against you.
  3. Meeting of Creditors.
    Within 30 to 45 days after the filing, you have a meeting of creditors. The bankruptcy trustee interviews you about your petition and any creditors present may also ask questions.
  4. Chapter 13 Payments.
  5. Under Chapter 13, the bankruptcy trustee takes your monthly payments and makes regular distributions to creditors. This will go on for three to five years until you complete your payment plan.
  6. Chapter 13 Discharge.
    Upon completion of your payment plan, the court issues a discharge of any remaining unsecured debts you may have.

Contact Price Law Group Today

We encourage you to contact a bankruptcy attorney at the firm to discuss your debt situation. We will go over the alternatives to bankruptcy as well as the benefits of bankruptcy with you and advise as your options. We will then help you carry out your plans. If you choose bankruptcy, we will prepare your papers and guide you through the process.

Contact a Bankruptcy Lawyer at the firm to discuss your needs today.

For more information call us at 866-210-1722 or fill out the form below.

Contact Us Today

Price Law Group - Bankruptcy Attorney
Call Toll Free: 866.210.1722