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What Happens in a Bankruptcy Proceeding?

What You Can Expect

After you complete all the necessary steps to filing for bankruptcy and sign all of the necessary forms, we will submit your bankruptcy petition to the court. Within 10 days, you will get a notice from the court telling you what you should do next. Those directions will depend on whether you filed for Chapter 7 or Chapter 13 bankruptcy.

To schedule a free initial consultation at our office in Charlotte, North Carolina, call (704)512-0697 or contact us online.

Chapter 7 Bankruptcy Proceedings

With a Chapter 7 bankruptcy proceeding, the notice you receive from the court will direct you to attend your hearing. For this type of bankruptcy, there is only one hearing in most cases, and it is presided over by a Chapter 7 trustee. At the hearing, the trustee assess whether or not you have any nonexempt assets that can be taken to pay back your creditors. If there are none, which is the case in most situations, he will find a no asset case.

If there are assets available, we will talk with the trustee about pay the value of the non-exempt debt to the trustee.

If these matters have been resolved, the debtor or debtors are eligible for a discharge. It arrives in the mail within ninety (90) days.

Chapter 13 Bankruptcy Proceedings

Chapter 13 bankruptcy proceedings tend to be a little more complex because the trustee will have to review the proposed monthly payment plan and see if the claims coincide with the proposal. In some cases, creditors will argue to make your monthly payment higher.

First, the Chapter 13 trustee will examine your claims and your creditors' claims to make sure they are consistent with each other. Then, the trustee makes a judgment as to whether your proposed monthly payment is enough according to the law.

The judge will in most cases confirm the plan by signing the confirmation order. Over the several years in which you are in the plan, you may want to make a modification as well if circumstances change so that your monthly payment is no longer affordable.

If you think bankruptcy is right for your situation, contact The Cummings Law Firm, P.A. online or call (704)512-0697.