Everyone knows that bankruptcy can get you out of debt, but they don’t realize that it is a process. The bankruptcy process walks you through a means of consolidating and paying off debt before the court can discharge what is left. That is why it is important to work with a bankruptcy attorney to help you through the bankruptcy process.
See what the team at Kain + Henehan wants you to know about the bankruptcy process so that you can better understand bankruptcy.
Transcript:
“The process to file bankruptcy through our office is to set up a free consultation at the beginning. That can be done in-person, over the phone, or via Zoom. At that consultation, we’re going to go through income, assets, debt, we’re going to figure out if a bankruptcy is the right option, and then we’re going to figure out if it’s a Chapter 7 or Chapter 13 bankruptcy. From that jumping off point, if a bankruptcy is the right option, the client will then be sent a checklist of documents to gather, things that are pretty easy to get their hands on. There are things like their paystubs, tax returns, statements on the credit cards or whatever type of debt they have, then once we have the documents all gathered, the client is going to have a second meeting with our office. Again, that meeting can be in-person, over Zoom. I don’t like to do them over the phone because this is a longer meeting. I like to be able to sit down and at least see you to do the second meeting because this is when we’re doing the bankruptcy paperwork.
The bankruptcy paperwork is about 60 pages of paperwork. It’s the petition and the schedules and we’re building those out together. We’re going through the information you gathered and we’re putting it all together in the paperwork. You sign off on the paperwork at that appointment and then usually within a couple of days your case is filed. That’s when I always tell clients that’s when the wall goes up between you and your creditors. No one can contact you anymore. No one can call, write you letters, try to collect, take money out of your bank accounts. Everything stops at that point. No further lawsuits, everything goes through me and my office. That is when the bankruptcy is officially filed with the court. Then depending on what type of bankruptcy, if it’s a Chapter 7, it’s about 90 more days that the case is open until discharge, Chapter 13 is the three-to-five-year payment plan.
Then after the case is filed, there’s one meeting of creditors that everyone has to attend. It’s your one appearance in court, even though it’s not really court. It’s a meeting with the trustee and the trustee is someone who is overseeing your case, making sure you’ve listed all your assets, making sure you’ve listed all your creditors. At this point, this meeting of creditors is taking place over phone or over Zoom. The courthouses have not opened back up to do these meetings in-person due to the pandemic. I don’t think we’re going to see them open back up. I think we’re going to continue to see them via Zoom or phone, which I think is really convenient for clients. People have had to drive depending on where they live into the Twin Cities oftentimes to do these meetings. You don’t have to pay for parking, try to figure out downtown Minneapolis or downtown St. Paul. The meeting can just be done at home, at work.
It takes about ten minutes, just a series of yes, no questions. That’s really the only appearance you have to make. Then depending on what type of bankruptcy, a Chapter 7, there’s really not much work to do after that meeting. It’s really just waiting for discharge. Chapter 13, you’re making your monthly payments every month and there’s not too much more to do after the meeting in a Chapter 13 either besides just making your payments. ”
Contact a Bankruptcy Attorney for Help
Understanding bankruptcy is an important part of being able to manage the bankruptcy process, but you may need more help. If you are in financial trouble and need a way out, then work with a bankruptcy attorney to improve your chances of success. Contact Kain + Henehan by calling (612) 438-8006 or filling out the online form so we can work through this process together.
