{"id":1562,"date":"2019-04-18T19:07:08","date_gmt":"2019-04-18T19:07:08","guid":{"rendered":"https:\/\/farmerwright2.wpengine.com\/?p=1562"},"modified":"2021-03-01T18:59:13","modified_gmt":"2021-03-01T18:59:13","slug":"what-happens-when-you-file-bankruptcy","status":"publish","type":"post","link":"https:\/\/farmerwright.com\/what-happens-when-you-file-bankruptcy\/","title":{"rendered":"What Happens When You File Bankruptcy?"},"content":{"rendered":"<p>Contrary to popular myth, bankruptcy is not a sign of failure. Nor does it irreparably damage your credit. For many hardworking Americans, bankruptcy can simply provide a way to get out from under crushing debt caused by illness, job loss, and other unexpected life emergencies. And it can also give you a fresh financial start.<\/p>\n<p>But how does bankruptcy work? And what happens when you file bankruptcy? If you are struggling to pay your bills or dealing with creditor calls, don&#8217;t expect things to magically change. Learn more about how bankruptcy can help by speaking to a <a href=\"\/personal-bankruptcy\/\">Paducah bankruptcy attorney<\/a> at <a href=\"\/contact-us\/\">Farmer &amp; Wright, PLLC<\/a> today.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Choosing_an_Experienced_Bankruptcy_Attorney\"><\/span><img fetchpriority=\"high\" decoding=\"async\" class=\"aligncenter wp-image-1563 size-full\" title=\"What Happens When You File Bankruptcy - Paducah KY Bankruptcy Attorney\" src=\"https:\/\/farmerwright.com\/wp-content\/uploads\/2019\/04\/What-Happens-When-You-File-Bankruptcy-Paducah-KY-Farmer-Wright.jpg\" alt=\"What Happens When You File Bankruptcy - Paducah KY Bankruptcy Attorney\" width=\"1000\" height=\"667\" srcset=\"https:\/\/farmerwright.com\/wp-content\/uploads\/2019\/04\/What-Happens-When-You-File-Bankruptcy-Paducah-KY-Farmer-Wright.jpg 1000w, https:\/\/farmerwright.com\/wp-content\/uploads\/2019\/04\/What-Happens-When-You-File-Bankruptcy-Paducah-KY-Farmer-Wright-300x200.jpg 300w, https:\/\/farmerwright.com\/wp-content\/uploads\/2019\/04\/What-Happens-When-You-File-Bankruptcy-Paducah-KY-Farmer-Wright-768x512.jpg 768w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/><br \/>\nChoosing an Experienced <a href=\"\/personal-bankruptcy\/\">Bankruptcy Attorney<\/a><span class=\"ez-toc-section-end\"><\/span><\/h2><div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<label for=\"ez-toc-cssicon-toggle-item-6640d2601d75c\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6640d2601d75c\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/farmerwright.com\/what-happens-when-you-file-bankruptcy\/#Choosing_an_Experienced_Bankruptcy_Attorney\" title=\" \nChoosing an Experienced Bankruptcy Attorney\"> \nChoosing an Experienced Bankruptcy Attorney<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/farmerwright.com\/what-happens-when-you-file-bankruptcy\/#Gathering_Financial_Documents\" title=\"Gathering Financial Documents\">Gathering Financial Documents<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/farmerwright.com\/what-happens-when-you-file-bankruptcy\/#Filing_a_Bankruptcy_Case\" title=\"Filing a Bankruptcy Case\">Filing a Bankruptcy Case<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/farmerwright.com\/what-happens-when-you-file-bankruptcy\/#After_You_File_The_Automatic_Stay\" title=\"After You File: The Automatic Stay\">After You File: The Automatic Stay<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/farmerwright.com\/what-happens-when-you-file-bankruptcy\/#Meeting_of_Creditors\" title=\"Meeting of Creditors\">Meeting of Creditors<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/farmerwright.com\/what-happens-when-you-file-bankruptcy\/#Finalizing_Your_Bankruptcy\" title=\"Finalizing Your Bankruptcy\">Finalizing Your Bankruptcy<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/farmerwright.com\/what-happens-when-you-file-bankruptcy\/#Moving_On_After_Bankruptcy\" title=\"Moving\u00a0On After Bankruptcy\">Moving\u00a0On After Bankruptcy<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/farmerwright.com\/what-happens-when-you-file-bankruptcy\/#Learn_More_About_What_Happens_When_You_File_Bankruptcy\" title=\"Learn More About What Happens When You File Bankruptcy\">Learn More About What Happens When You File Bankruptcy<\/a><\/li><\/ul><\/nav><\/div>\n\n<p>The first step in filing bankruptcy is choosing the right attorney. You want an attorney whom you feel comfortable with, and who is familiar with the type of bankruptcy you will be filing.<\/p>\n<p>If you have unique assets, such as a vacation home, or debt types, such as a civil judgment, it&#8217;s important to ensure that your attorney has worked on bankruptcy cases with these factors in mind.<\/p>\n<p>Your lawyer can also answer your questions and help you avoid common pitfalls while abiding by bankruptcy laws.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Gathering_Financial_Documents\"><\/span>Gathering Financial Documents<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Bankruptcy requires you to file information with the federal bankruptcy court. Along with your personal information, you will need to gather documents related to credit reports, bank statements, investments, expenses, and more.\u00a0Collecting this information can help your attorney have a complete picture of your finances.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Filing_a_Bankruptcy_Case\"><\/span>Filing a Bankruptcy Case<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Once your attorney assesses your financial documents, they can help you determine whether <a href=\"\/chapter-7-bankruptcy\/\">Chapter 7 bankruptcy<\/a> or <a href=\"\/chapter-13-bankruptcy\/\">Chapter 13 bankruptcy<\/a> is right for you. In both <a href=\"https:\/\/farmerwright.com\/louisville-attorney\/\">types of bankruptcy<\/a>, you will be expected to file a bankruptcy case with a federal court. This is because bankruptcy cases are always federal, as opposed to state, as they involve federal laws.<\/p>\n<p>Common court documents you\u2019ll <a href=\"https:\/\/farmerwright.com\/louisville-attorney\/\">file for bankruptcy<\/a> include:<\/p>\n<ul>\n<li>Bankruptcy petition<\/li>\n<li>Fee waiver<\/li>\n<li>Summary of assets<\/li>\n<li>Schedule of property<\/li>\n<li>Exemptions<\/li>\n<li>Creditors<\/li>\n<li>Statement of co-debtors<\/li>\n<li>Income<\/li>\n<li>Expenses<\/li>\n<li>Statement of financial affairs<\/li>\n<li>Debt plan<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"After_You_File_The_Automatic_Stay\"><\/span>After You File: The Automatic Stay<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Once you file bankruptcy, the court will likely issue an automatic stay, which will stop the calls from your creditors. Once an automatic stay is in place, creditors must contact your attorney or wait for the Meeting of Creditors to address issues with you.<\/p>\n<p>The automatic stay will also put a hold on legal actions against you by your creditors. That includes car repossession or eviction. In some situations, a creditor may continue a legal action against you. In these cases, the automatic stay can buy you time to negotiate with creditors or bring your payments current.<\/p>\n<p>If a creditor calls you after you have filed a bankruptcy, give them your case number and direct them to your attorney. It is illegal for them to contact you once the case has been filed.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Meeting_of_Creditors\"><\/span>Meeting of Creditors<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>A Meeting of Creditors will be scheduled soon after you file bankruptcy. Your attorney, you, and your trustee will all attend. While creditors are also notified, they rarely attend.\u00a0In the rare case that a creditor does attend the Meeting of Creditors, it&#8217;s usually because they want to challenge the debt or assert fraud. They may also attend in an attempt to obtain money from your bankruptcy plan.<\/p>\n<p>In most cases, however you will go to the meeting and face questions by the trustee without conflict. The trustee will ask you questions about your finances and whether you have filed bankruptcy in the past. You will also have to reaffirm much of the information you submitted with your bankruptcy paperwork. The goal is to make sure all of the information is accurate.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Finalizing_Your_Bankruptcy\"><\/span>Finalizing Your Bankruptcy<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Once the Meeting of Creditors\u00a0is over, your bankruptcy will be\u00a0finalized with the bankruptcy court. If you\u2019re filing Chapter 7, your debts will be gathered for discharge. If you\u2019re filing Chapter 13, you will have to present a payment plan. In either case, the court will hold a hearing to finalize these aspects of your case. In most cases, you don\u2019t have to attend this hearing. Your bankruptcy attorney can attend it on your behalf.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Moving_On_After_Bankruptcy\"><\/span>Moving\u00a0On After Bankruptcy<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Once you are in a manageable payment plan or your debts have been discharged, you can start rebuilding your credit. Although your credit score may have taken a hit, in time you will be able to restore your credit score, secure loans, and move on with your life.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Learn_More_About_What_Happens_When_You_File_Bankruptcy\"><\/span>Learn More About What Happens When You File Bankruptcy<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Deciding whether to file bankruptcy can be difficult, especially if you don\u2019t know what happens when you file bankruptcy. For more information about the bankruptcy process, contact <a href=\"\/contact-us\/\">Farmer &amp; Wright,\u00a0PLLC<\/a>\u00a0today.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Contrary to popular myth, bankruptcy is not a sign of failure. Nor does it irreparably damage your credit. For many hardworking Americans, bankruptcy can simply provide a way to get out from under crushing debt caused by illness, job loss, and other unexpected life emergencies. And it can also give you a fresh financial start. [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":1563,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"default","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"default","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[3],"tags":[],"_links":{"self":[{"href":"https:\/\/farmerwright.com\/wp-json\/wp\/v2\/posts\/1562"}],"collection":[{"href":"https:\/\/farmerwright.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/farmerwright.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/farmerwright.com\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/farmerwright.com\/wp-json\/wp\/v2\/comments?post=1562"}],"version-history":[{"count":0,"href":"https:\/\/farmerwright.com\/wp-json\/wp\/v2\/posts\/1562\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/farmerwright.com\/wp-json\/wp\/v2\/media\/1563"}],"wp:attachment":[{"href":"https:\/\/farmerwright.com\/wp-json\/wp\/v2\/media?parent=1562"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/farmerwright.com\/wp-json\/wp\/v2\/categories?post=1562"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/farmerwright.com\/wp-json\/wp\/v2\/tags?post=1562"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}