What Happens After You File

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The day you file your bankruptcy there is a court order which goes into effect called an automatic stay. This order directs your creditors to stop all collection efforts against you. They cannot call you, write you, sue you, garnish your paycheck or have any contact with you at all. This order stays with you the entire time you are in bankruptcy. Once the bankruptcy is complete, you receive a discharge of your liability to have to repay the debt and the debt is wiped out.

About two weeks or so after your bankruptcy is filed, you should receive in the mail a notice from the Court what is called a Notice of Meeting of Creditors. This notice will give you the date, time, and place of your hearing. You will have to attend this hearing. If your bankruptcy is a joint filing, both you and your spouse will have to attend. The hearing itself is usually set between four and six weeks after your case is filed. If you cannot attend the hearing for some reason, the court will reschedule it once without any question. However, you should make every reasonable effort to attend the first setting because if you are unable to attend the second setting, the Court will dismiss your case. Attending the first setting helps keep your case on track.

This hearing is an administrative hearing. It is not a formal court hearing. It will be conducted by someone called a Trustee in a conference room. In fact, unless someone files an objection to your bankruptcy which cannot be settled (which is rare), you will not have to appear before a bankruptcy judge at all. The hearing is usually only a few minutes. The trustee asks general questions like whether or not you listed all of your creditors and if your listed all the property you own.

Any of your creditors are allowed to show up to this hearing if they choose to do so. They are not required to show up and usually they do not. In a typical case, no creditors show up and the parties involved are you, your attorney, and the trustee. Even if a creditor does show up, they cannot use this hearing as a forum to harass you. They can only ask questions reasonably related to their interest. For example, a financier of a car could show up and ask whether the car is currently insured or how many miles it current has, etc.
 
Also, after you file, the court requires that you complete a class in financial responsibility. This can be done either by telephone or internet for a small fee. It is best to take this class as soon as possible after you file to make sure your case completes. If you file Chapter 13, the trustees are currently offering  this class for free.

If you file a Chapter 7, attending this one hearing and completing the class on financial responsibility is all you will have to do. In about two months or so you will receive in the mail what is called a Discharge of Debtor which means your case has been completed and your debts have been permanently discharged.  If you file a Chapter 13,  you also have to attend this one hearing and complete the class on financial responsibility. In addition, you must make your plan payments for the length of the plan. Once the plan is complete, you will receive a Discharge of Debtor. 
 
Let Us Show You How We Can Help
The Harris Law Firm is experienced in helping Arkansans file both Chapter 7 and Chapter 13. We have over 25 years of legal experience.  Contact us at the Harris Law Firm. You can call us at 501-372-6985 or set an appointment online. We offer free consultation. There is never a fee unless you decide to file.