What Happens Once I Submit My Bankruptcy Petition?

Like most first-time debtors, you likely have no idea how your upcoming bankruptcy proceedings are supposed to play out. Well, hopefully, this blog serves as a crash-course guide on what to expect. After all, you do not want to be ill-prepared and cause unnecessary delays in this already time-consuming and emotionally draining process. What’s worse, you do not want to make a mistake that will force the Kentucky bankruptcy court to penalize you or otherwise dismiss your case entirely. With all that being said, please follow along to find out what happens once you submit your bankruptcy petition to the court and how a proficient Louisville, Kentucky consumer bankruptcy lawyer at Schwartz Bankruptcy Law Center can help you see it through.

What happens once I submit my bankruptcy petition to the Kentucky bankruptcy court?

Once the Kentucky bankruptcy court receives your bankruptcy petition and its relevant supplemental documentation, they may mail your creditors notice of the automatic stay order. Specifically, an automatic stay order bars your creditors from participating in harassing collection activities for the duration of your case proceedings (i.e., contacting by mail, phone, or in person, filing lawsuits, pursuing foreclosure, etc).

Soon after, the court may assign a bankruptcy trustee to your case. This individual is charged with reviewing your provided financial documents and determining which unexempt property they may take and sell. In turn, the funds from these sales will be used to pay off your outstanding creditors. Overall, they should keep you on track throughout your proceedings and ensure you comply with all its surrounding laws and procedures.

Then, you may be expected to attend a mandatory 341 meeting of creditors. At this meeting, your trustee may verify your identity and ask questions regarding your supplied bankruptcy paperwork. Also, your creditors may attend and ask questions regarding your assets, debts, claims, property, and your overall financial affairs.

At the tail-end of these proceedings, you may be asked to attend a debt counseling course. The hope behind this is to give you the tools necessary to never file for bankruptcy again. With this, the court may ask you to file a certificate of completion.

What happens at the conclusion of my bankruptcy case?

If you cooperate and complete the aforementioned actions successfully, the final step of your bankruptcy case should be a discharge of your eligible debts. Examples of your potentially dischargeable debts are credit card bills, medical bills, personal loans, etc. This means that you are relieved from the burden of having to pay off these outstanding debts. Hopefully, with these no longer part of your responsibilities, you may finally be in a financially stable state.

In conclusion, for more information on if and when to file a bankruptcy petition, please don’t hesitate to contact a talented Louisville, Kentucky consumer bankruptcy lawyer from Schwartz Bankruptcy Law Center. We look forward to hearing from you and later on helping you.