For many, making the decision to file for bankruptcy is an incredibly overwhelming experience. However, once you explore your options and determine that this is the best course of action, it’s important to understand what comes next. Unfortunately, many who are considering filing only look into how to start the process and what the end result is, without considering what happens in the middle. As such, knowing what happens after you file for bankruptcy is critical. The following blog explores what you can expect once you declare bankruptcy and why working with a Memphis, TN consumer bankruptcy lawyer is critical during this process.
What Happens After Filing for Bankruptcy?
Generally, after you declare bankruptcy, one of the first things you will notice is that creditors will stop contacting you. This is because once you file, you are granted what’s known as an automatic stay. Essentially, this means that all collection efforts against you must cease, including phone calls, foreclosures, and lawsuits. Any creditor who wishes to continue must receive permission from the court to continue collection efforts against you.
Next, you’ll need to attend the 341(a) Meeting, also referred to as the meeting of creditors, which is mandatory for all filers. Essentially, your bankruptcy trustee will review your documents and ask any relevant questions, which you must answer honestly. It’s called the meeting of creditors informally, as creditors are notified of the meeting and may attend to ask any questions. However, their presence is not required, as this is a relatively short meeting, typically lasting 15 minutes.
It’s important to understand that, in addition to attending a credit counseling course prior to your bankruptcy filing, you must also complete a debtor education course. Essentially, this means you cannot have your debts discharged unless you complete this course through an accredited company. This class will teach you how to manage your income and finances to help avoid bankruptcy in the future.
Should I Connect With a Lawyer?
If you are considering filing for bankruptcy, it’s imperative to understand the importance of working with an experienced attorney to guide you through this process. Generally, filing for bankruptcy is an incredibly complicated legal process with an overwhelming amount of paperwork. As such, connecting with an experienced attorney is recommended.
Unfortunately, if you try to file for bankruptcy on your own, you risk making errors that can lead to your case being dismissed. As such, it’s in your best interest to let a qualified attorney handle these complicated matters.
At the Arnold Law Firm, we believe everyone should experience financial relief, which is why we are committed to helping our clients understand their legal options when considering bankruptcy. If you need assistance, our team is ready to help. Connect with us today to learn how we can assist you through these matters.
