The main purpose of bankruptcy law is to give people, hopelessly burdened with debt, the opportunity of a fresh financial start.
In most cases a person is out of bankruptcy in nine months, at which time all eligible debts are erased.
In most cases all assets are retained.
Trustee fees are regulated by the government. Fees come out of the required payments, with a minimum cost of approximately $1,800 payable over 9 months.
Filing bankruptcy protects a person from creditors as follows:
1. Creditors cannot pursue collection action;
2. Collection calls cease;
3. Wage garnishees are prevented or, if in place, are stopped.
For the vast majority of people the steps in a bankruptcy will be as follows:
Phone one of our trustees to set up a FREE confidential consultation. Take this filled out form to the meeting. This meeting takes about an hour.
Think over what the trustee told you at the meeting and if you think that bankruptcy is the best option for you to get a fresh financial start phone the trustee’s office and set up a time to go back to the office to sign the documents. This meeting will be about forty five minutes.
The bankruptcy documents are mailed to your creditors within five business days. Because of the Stay of Proceedings now in effect, creditors cannot take any action against you. If any collectors or creditors phone you to collect on your debt tell them you filed bankruptcy and refer them to your trustee.
You will send your Statement of Income & Expenses, pay stubs and the required monthly payment to your trustee every month. You must do this as part of your duties so that your Trustee can recommend your discharge.
Two financial counselling sessions are held at the trustee’s office. The first counselling session is held within the first two months; the second one is held at the seventh month. You must take these financial counselling sessions in order to be eligible for your discharge from bankruptcy.
At the eighth month your trustee will report on how you conducted yourself before and during the bankruptcy. If you conducted yourself properly your trustee will recommend an absolute discharge from bankruptcy at the nine month.
Your Trustee will send you your Certificate of Discharge which will certify that all your eligible debts have been erased. The credit bureaus will be notified and in six years the record of the bankruptcy will be removed from your credit report. If any former creditor tries to collect from you or says you still owe them money showing them a copy of this document will prove that you do not owe them any money.