WHAT HAPPENS IN A BANKRUPTCY PROCEEDING?
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 with a lawyer at our office in Charlotte, North Carolina, call (704) 376-2853.
DISCHARGING DEBT WITH CHAPTER 7 BANKRUPTCY
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, presided over by a Chapter 7 trustee. At the hearing, the trustee assesses whether you have any nonexempt assets that can be taken to pay back your creditors.
If there are no nonexempt assets, which is the case in most situations, the trustee will find a no-asset case.
If assets are available, we will talk with the trustee about paying the value of these nonexempt debts to the trustee.
If these matters have been resolved, the debtor or debtors are eligible for a discharge, which arrives in the mail within 90 days.
PROPOSING PAYMENT PLANS WITH CHAPTER 13 BANKRUPTCY
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 will make a judgment as to whether your proposed monthly payment is enough according to the law.
In most cases, the judge will confirm the plan by signing the confirmation order. If a change in circumstances makes your monthly payment unaffordable, you can seek a modification in the plan.
SCHEDULE A FREE INITIAL CONSULTATION WITH AN ATTORNEY
If you think bankruptcy is right for your situation, contact The Cummings Law Firm, P.A. by email or call (704) 376-2853.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.