Facing bankruptcy is often a difficult experience. One way to make it less painful is to understand the process in advance so you know what to expect. Chris Arrington understands the complexities involved in the process of bankruptcy. In this article, we’ll take you through the bankruptcy process so you know what to expect when filing for bankruptcy in an Indiana Bankruptcy Court. 

Assessment and consultation

Your first step in the bankruptcy process is to consult with a bankruptcy attorney. During your initial consultation, your attorney will assess your financial situation, discuss your goals, and determine which Chapter of bankruptcy suits your circumstances best, Chapter 7 or Chapter 13. 

Preparing your bankruptcy petition

Once you have decided what Chapter of bankruptcy to file under, you will have to prepare the necessary paperwork and documentation for the filing. This step will involve gathering financial records, tax returns, and other information that the court requires.

Filing your bankruptcy petition

Your bankruptcy petition must be filed with the Indiana Bankruptcy Court. This is the official start of your bankruptcy case. Once the petition is filed, the automatic stay goes into effect, which prevents creditors from taking collection actions against you. This will provide immediate relief from collection calls and lawsuit threats. 

The 341 Meeting of Creditors

Shortly after you file your petition, you must attend the Meeting of Creditors (341 Meeting). During the meeting, your creditors will ask questions concerning your financial situation. Your bankruptcy attorney will prepare you for this meeting and ensure you know what to expect and how to respond to the questions.

(Chapter 13) Creating a repayment plan

If you filed under Chapter 13, your next step involves developing a repayment plan. The plan outlines how you intend to repay a portion of your debts over a specified time period. Your attorney will work closely with you to create a fair repayment plan.

Financial management course

Whether you filed under Chapter 7 or Chapter 13, you will have to complete a financial management course. Your attorney will guide you in fulfilling this requirement. This includes helping you choose course providers and ensuring that you receive the necessary certificate to submit to the court. 

Discharge of debts or completing your repayment plan

If you filed under Chapter 7, once the 341 Meeting and any related issues are resolved, you will receive a discharge of your eligible debts. This means you are no longer required to pay them.

If you filed under Chapter 13, you must complete the repayment plan. Once it’s successfully completed, you may be eligible for the discharge of unsecured debts. You will also have to complete a post-bankruptcy counseling course.

Your bankruptcy case is closed

Once you complete your bankruptcy proceedings, the court will close your case. You can now enjoy a fresh financial start. Afterward, you will want to begin to rebuild your credit. 

Talk to a Danville, Indiana, Bankruptcy Attorney Today

Chris Arrington represents the interests of Indiana residents who need to file for bankruptcy. Call our office today to schedule an appointment, and we can begin discussing your next steps right away.