It is important to know that the trigger to formally be in bankruptcy is when your lawyer files the papers (electronically) and obtains an index number, otherwise known as a case number. At this point you will be in bankruptcy and an automatic stay is created.
A stay is a fancy word to describe the fact that once a bankruptcy is filed, your creditors can no longer contact you or seek payment from you. They are estopped (prevented) from coming after you.
Simultaneous with the stay, your possessions and any assets you own will fall to the bankruptcy trustee to deal with.
A bankruptcy trustee is usually a lawyer that is in private practice but also works per diem (on a case by case basis) for the bankruptcy court. The trustee does not have to be a lawyer and many trustees are in fact accountants and the like.
A trustee is an appointed position and for each court there is a pool of several trustees depending on how busy that court is. A debtor has no control over which trustee they will be assigned. The electronic filing of the bankruptcy case will auto generate the trustee, judge and index number.
The main job of the trustee is to make certain that a debtor in fact qualifies for the bankruptcy type (7 or 13) they have elected. That the debtor is not hiding any assets or has failed to list certain assets and to make sure that in a 13 the creditors are repaid (despite it being less than what is actually owed) fairly in relation to the other creditors.
There is also one mandatory meeting with the trustee at the bankruptcy court where the debtor will be sworn in and the trustee will ask several questions about their filing. Do not let this concern you. Grant Phillips Law, PLLC will attend this meeting with you and will prepare you for the meeting. The actual meeting itself is about 5 to 10 minutes.
Again, Grant Phillips Law, PLLC will have one of our dedicated and experienced attorneys sitting beside you at all times throughout the meeting.
There are several fees involved in filing a bankruptcy. They are as follows:
The time period differs according to the bankruptcy filing. For a total liquidation / Chapter 7 it will remain on your credit for 10 years. For a consolidated but discounted repayment plan / Chapter 13 it will remain on your credit for 7 years.
As stated previously, a bankruptcy is not the end but in fact the very beginning. It was designed and intended to provide a debtor with a fresh start. The lawyers are Grant Phillips Law, PLLC will show you many different ways to rebuild your credit. Additionally we have clients that have obtained credit soon after their bankruptcy filing.
You will rebuild and with the help of Grant Phillips Law, PLLC and our comprehensive debt approach we will broach and discuss different options for cars and various types of housing. Grant Phillips Law, PLLC has clients that have filed bankruptcy and leased new cars or even purchased a house. It is important to know that happened in the past is no reflection of your future.
You have made a business decision and you will rebuild financially. It is fascinating to know that at times we have even seen a client’s credit score INCREASE after the filing of a bankruptcy. The credit agencies algorithms are computer generated and the algorithm is programmed to reward consumers for taking care of debt rather than leaving it to sit.
Bankruptcy is not fun and certainly not a solution for all. However it is the ultimate form of taking ownership of the debt one owes and showing the algorithm that you have taken action rather than let past due bills sit. For this the algorithm will usually reward you with a slight increase in credit score. With your will and our experience and compassion, we will get through this together with minimal fuss using our logical, methodical and precision focus.
Grant Phillips Law, PLLC is a different kind of law firm. You are NOT a number. You will only deal with an attorney from 1st consultation through to discharge – when your case has been approved and debts written off.