Bankruptcy Timeline
01
First Contact
First thing's first, we want to meet you. The best way to reach us is by filling out our contact form. You can let us know how you prefer to communicate and a little bit about what we can do for you.
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While this is a secure form (only attorneys will read it) you don't need to give us too much detail right away. Just the broad strokes will help us prepare for the initial consultation. This also helps us avoid spammers and maintain security for our clients.
02
Free Consultation
Again, we love talking people through their issues, so we do not set a time limit on our free consultations. But at ELC we also value your time. We should be able to get an accurate idea of your situation and figure out next steps in about an hour.
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During your free consultation we take a more detailed look at your finances: your income, assets, and debts. And if it seems like bankruptcy could be the right move, we’ll get enough information to perform a means test to determine what type of bankruptcy you are eligible for.
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At that point, if you’re ready to reap the benefits of filing for bankruptcy and move on with your life, we are ready to get straight to work! We’ll enter what is called a retainer agreement, and boom! You’re lawyered-up and from this point your creditors have to go through us.
Learn more about what to expect from our free consultation, including what information you’ll need to get started.
03
ELC Questionnaire
Over decades of bankruptcy filings, we’ve perfected our system for getting the info we need from our clients. Opening up your books and pouring out the details of your financial life is not easy, emotionally or practically. That’s why we’ve made the process smoother and simpler for you with our safe, secure, digital questionnaire.
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It’s also why we’ll be there for you at every step. If you’re already a wiz with online forms (if you’ve used TurboTax or other tax-filing programs, you know the drill) then you should have no issues completing the ELC Questionnaire on your own. But if you have questions or you hate staring at screens, we’re happy to talk you through it all.
04
Credit Counseling
Because of the implications filing for bankruptcy has on your credit, the courts require that people considering bankruptcy complete a certified credit counseling course that will educate you on these issues and help you consider whether or not to file.
Of course, at ELC we always have an open and frank discussion in your initial free consultation about any credit trade-offs that may affect you if you file for bankruptcy. We never pressure anyone to file if we don’t think it will be in your best interest. Nonetheless, taking this course is a legal requirement.
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You can take a credit-counseling course online, and if you qualify then you can do so free of charge. Our clients usually complete this requirement in 1 to 2 hours.
05
Attorney Files Petition
Once we’ve confirmed that the questionnaire is accurate and complete, we take it from there. We use the information we’ve confirmed with you to prepare your chapter 7 or chapter 13 bankruptcy petition.
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Once we file the petition, that’s when the magic starts happening for you. We’ve already stopped your creditors from contacting you, but now you can stop paying them. (Note: your attorney will likely advise you to continue making mortgage payments on any property that you will be keeping)
If you’re filing a chapter 7 petition, the trustee will start determining, with your attorney’s help, which debts are dischargeable, and which assets are exempt.
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If you’re filing a chapter 13 petition, your attorney and the trustee begin working out a payment plan for you.
06
Debt Education
In addition to the required pre-filing credit counseling session, bankruptcy law requires that individuals that have filed a bankruptcy petition complete a course before your debts are discharged that provides personal financial management tools you can use after your case is closed.
The timeliness of the completion of this course is important. The court (and your attorney, if you are represented by ELC) will notify you of this requirement.
07
Creditors Meeting
Before your debts are discharged or you begin a chapter 13 payment plan, the bankruptcy code requires you, your attorney, the trustee, and whatever creditors show up to meet and finalize the information and amounts in your petition. This meeting usually happens 30 days after your petition is filed.
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Your attorney will have already worked out any issues with the trustee and your creditors so this meeting is almost always quick and easy. In fact, creditors rarely even attend.
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Even easier, since COVID-19 emerged, the bankruptcy court has made all creditor’s meetings virtual through Zoom, and we’ll be able to help you with any technical issues.
09
Ch. 7 - Discharge!
If you filed a chapter 7 petition, approximately 60 days after the creditor’s meeting the bankruptcy court will issue an order for discharge, and your dischargeable debts go away forever, tax free! This is where all your hard work pays off and you get a fresh start in life. Congratulations!
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We love hearing from our clients after their bankruptcy, especially when they and their family are thriving with their debt load off their back. But after this we hope you never need our services again.
09
Ch. 13 - Confirmation Hearing
By this point in a chapter 13 bankruptcy your attorney and trustee have worked out any issues with your creditors and devised a payment plan. All that needs to happen next is for the bankruptcy court to confirm that the plan is fair and follows the law.
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It is very unlikely that you will need to attend this hearing.
10
Ch. 13 - Make Monthly Payments
In a chapter 13 case, even though your debts are not discharged yet, your new financial life starts once your plan is confirmed. You’ll move on with a much lower burden and no further interaction with your creditors.
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You’ll make your monthly payments to the trustee for 3-5 years, and from there your trustee pays your creditors and even your attorney!
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Learn more about chapter 13 payment plans and why they work better than debt consolidation.
11
Ch. 13 - Discharge!
If you filed a chapter 13 bankruptcy, after you’ve made a number of payments according to your plan, the court will issue an order for discharge and all your remaining dischargeable debts are gone, tax free! Congratulations!
NOTE: none of the information published here should be considered legal advice. Not every case is the same and without an attorney who knows the specifics of your situation, a mistake could cost you dearly. Set up a consultation with ELC if you want to start the bankruptcy process.
