Bankruptcy Timeline

What Are The Major Events In The Bankruptcy Process
And When Will The Bankruptcy Be Over?

Day #1

The bankruptcy documents are filed with the bankruptcy Court.
There is an immediate stay so that most actions by creditors are prevented, wages cannot be garnisheed, legal actions cannot be continued.

Day #14

Creditors are advised by the clerk that a petition has been filed.

Day #20 – #40

A Meeting of Creditors is held at the Court (“The 341 meeting”).
The debtor must attend this meeting. Creditors can attend but usually do not attend the meeting. If they attend they usually only have a few minutes to ask questions.

The trustee assigned to the case presides. The meeting is either tape recorded or recorded by a court reporter. The trustee asks you questions under oath such as:

1. Did you read the schedules before signing?
2. Did you list all of your assets?
3. Did you list all of your debts?
4. Are the schedules accurate?
5. Do you want to make any corrections to the schedules?
6. Are your cars insured?
7. Have you destroyed your credit cards?

The trustee either orally, or by giving the debtor written information, will ensure that the debtor is aware of:

The effect on credit history; the effect of receiving a discharge; the effect of reaffirming a debt; the ability to file a petition under a different chapter.

Note: The typical 341 meeting lasts about 4 to 5 minutes.

Day #20 – 30 and After

The trustee will sell any nonexempt assets available for the benefit of the creditors.

The trustee has the authority to:

1. pursue any lawsuits belonging to the debtor;
2. set aside preferential transfers made to creditors within 90 days before the petition;
3. undo security interests and other pre-petition transfers of property that were not properly perfected.

Day #90 (after the 341 meeting)

Unsecured creditors must have filed their claims.

Day #60 – #90 (after the 341 meeting)

The debtor is discharged and all debts (with some exceptions) are written off.

More than 99% of the bankrupts are discharged.

If you need relief from harassing creditors, Rowland & Yauger invite you to contact our office for a free consultation to learn how we can assist you in handling this matter. Contact us or call our office at 910-621-2991 (Carthage) or 336-537-5547 (Asheboro).