One of the most commonly filed for bankruptcy is chapter 7. This type of bankruptcy is also referred to as liquidation bankruptcy, as in the end you will have liquidated most of your debt if not all of it. Any nonexempt properties that you may have will be sold. This will be done by your bankruptcy trustee so as to pay off creditors with the proceeds. Exempt properties will remain under your name. When embarking on the process of chapter 7 bankruptcy, there will be numerous forms to fill out and these forms will be obtained from the bankruptcy court. Once you have filled these forms, the stages of chapter 7 Lancaster PA will begin.
1. Automatic stay: During this stage, both your secured as well as unsecured debtors will be stopped from collecting what you owe them. This stage is automatic since it is an injunction issued by the court without you even having to have requested for it. This stage is supposed to give you some peace of mind as it ensures that your bankruptcy trustee and not your creditors will determine what you get to keep as your property. You will find that non-dischargeable loans will also be covered under automatic stay.
2. Credit counseling: During the 180 days prior to you filing for bankruptcy, you will have to undergo credit counseling from a nonprofit organization. You will then be required to file a completion certificate with the bankruptcy court once you complete this counseling. The counseling is mandatory and thus an important stage in chapter 7 Lancaster PA. The counseling typically lasts about an hour and involves an agent going through your finances with you so as to try and come up with suggestions or alternatives to filing for bankruptcy. It is not mandatory that you follow the recommendations you receive during the counseling however, it is pertinent that you complete the course.
3. 341 meeting: This is also known as meeting with your creditors. Once you are done with filing the necessary paperwork at the bankruptcy court, your creditors will be notified so as to give them a chance to file any objections that they may have. This will be followed by a scheduled hearing. The notice that is given to the creditors is known as a 341 notice and thus the meeting is named after that. At this meeting, expect your bankruptcy trustee to ask you questions such as if you have ever filed for chapter 7 bankruptcy before, if the information you have provided is accurate, and so on.
4. Discharge: Two months after the 341 meeting, you should expect to receive a notice of discharge. This gives you the leeway to go on with your life. However, if you come into any money during the 180-day period after filing for chapter 7 Lancaster PA bankruptcies such as through an inheritance, insurance, divorce and so on, you are required to report this to the bankruptcy court.
If you would like additional information on chapter 7 Lancaster PA bankruptcies or if you would simply like to learn more about what goes into it visit www.mitchellsommers.com
