bankruptcy reaffirmation deadline
CC Brown Law – What happens after you file Bankruptcy?
CC Brown Law: After you files bankruptcy, the “automatic stay” usually takes effect immediately. This will be based on whether you have had more than one bankruptcy case dismissed in the year before you filed the current case. The automatic stay will stop your creditors from taking any actions against you or your property. The Court will issue a notice to all your creditors and intimate them about the filing, its case number, the automatic stay, and the name of the trustee assigned to the case. The notice will also tells your creditors about Creditors Meeting date, the deadline for filing objections to your discharge and whether and where to file their claims. You must appear during the creditors Meeting otherwise your case may be dismissed.
In a Chapter 7 case, creditors have 60 days from the first date set for your Creditors Meeting to object to your discharge. If the deadline passes without any remonstrations being filed, the Bankruptcy Court may issue the discharge order. Some things may prevent or delay your discharge, and they are reaffirmation agreements, if a hearing is required and hasn’t been held, your failure to file your Certificate of completion of the Financial Management Course. If any remonstrations to the dischargeability of your debts are filed, they will be heard by the Court, but they shouldn’t stop the entry of the discharge as to your other debts. Only people can receive a discharge. Companies do not receive discharges.
If you won’t have any assets with equity above the liens against them, then the Trustee will prepare a “Report of No Distribution”, and your case will be closed. If you have non-exempt assets, the Court will give a deadline for your Creditors to file claims and notify them of it. The Trustee will take care of your assets, sell them, and pay the proceeds to your creditors. When all of the the assets have been sold and payments settled to the Creditors, the Trustee will file a Final Distribution Report and the Court will close your case.
In a Chapter 13 case, you file a plan. The Trustee or your creditors may file an objection to it. If no objections are filed, the Court may confirm it. Then you have to make monthly payments to the Trustee for the period of three to five years. The Trustee will give the proceeds of your plan payments to your creditors until you complete the plan or the Court dismisses your case or converts it to another Chapter.
After you complete your plan, the Court will issue a discharge order, the Trustee will prepare a final report, and your case will be closed. A discharge will not be issued if you fail to verify that you have made all of your Domestic Support Obligation payments and filed your certificate of completion of the Financial Management course.
The Chapter 13 procedure is very complicated and plans of reorganization are hardly ever successful without the assistance of a bankruptcy lawyer.
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