What Happens After You File for Bankruptcy
After you files bankruptcy, an automatic stay is issued by the court that prevents those creditors to whom the debt is owed from further collection activities.
Approx. a month after you file bankruptcy, a meeting will occur with all of your creditors that will take place to discuss your bankruptcy. Here, all, some, or none of your creditors will attend. it will be at their discretion. However, the bankruptcy trustee will definitely attend. If a creditor does attend, it is likely for the purpose of contesting your exemptions. It is a quick meeting that could lasts for less than an hour.
At this initial meeting, the bankruptcy trustee will go over your bankruptcy papers. The trustee could call into question certain items you’ve listed. The bankruptcy trustee will look for discrepancies and inaccuracies in the amounts you’ve put down on your bankruptcy papers.
All of the property that you have not claimed to be exempt is given to the bankruptcy trustee at this meeting for liquidation, sale to pay off your creditors. The bankruptcy trustee will begin the process of selling off your assets. You will likely be informed at this meeting that you are prohibited from selling, giving away or throwing away any of your property without the permission of the court.
The time between filing for bankruptcy and obtaining a discharge usually lasts anywhere from four to six months or more. Until you obtain a discharge, you have the right to change your mind about the bankruptcy and back out of the bankruptcy proceedings. This will allow the formal bankruptcy filing to be dismissed.
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