Bankruptcy: What Happens Now...and the Credit Counseling Course

June 25, 2010 - PRLog -- Many people wonder what will happen after they have provided our office with all the necessary information to file their case. Once we have all the information, we put into the computer, so that we can print schedules to file with the courts. They will have an appointment for them to review the documents and make sure that they are true and correct to the best of their knowledge. They will sign them under penalty and perjury and after we know that they are comfortable with that, we will get the case filed.

Well, what happens now? After the case is filed, it will be issued a case number. The courts will send out a notice to all the creditors and the Debtor will also get the notice, this is the meeting of creditors. This is the mandatory meeting that you have to attend. It is set about 30-45 days after the file date. You will receive a reminder call about the hearing about a couple of days prior to the hearing.

Well, what happens now? After the hearing, it will depend on if you are in a chapter 7 or a chapter 13. In a chapter 7, you will have to complete the debtor education course and have your attorney’s office file it with the courts. Once you have completed that, you are waiting on your discharge. It takes about 2 months after your meeting of creditors to receive this. There is a deadline that creditors have to be aware of, if they want to complain about your discharge. Once you are discharged, you are now ready to move on.

In a Chapter 13, you now have a confirmation hearing that will take place about a month after your hearing. You don’t have to worry about the debtor education course, because you should have attended the seminar at the chapter 13 trustee’s office. After confirmation is held and your case has been confirmed, the next step is TRCC, which is the trustee’s recommendation concerning claims. Now all your creditors have filed proof of claims with the courts and the trustee is going to review them to make sure that they are not double dipping or anything like that. TRCC is the last stage in a Chapter 13 and it takes place about a year after the case has been filed. Throughout the life of the bankruptcy, you will continue to make your payments and any changes that are made to the payments; the trustee and your attorney’s office will let you know.

At any time you have questions about the process of your case, don’t hesitate to call your attorney’s office and get clarification. They will not treat you any different. This is a new process to you and they understand that.

One of the requirements for filing a bankruptcy is that the Debtor must take a credit counseling course BEFORE the case can be filed. Another requirement of the credit counseling course is that it is only good for 180 days.

Lately, I have been having problems getting Debtors to take the credit counseling course. Even though it is stressed to them that the course must be taken before we can file the case, they still put off taking the course, thus we can’t file their case. I have one client whose car is in danger of being repossessed. He has signed all his paperwork, but he hasn’t completed the course. It is a course that is taken online and then requires the Debtor to call in and talk to a Counselor. My client has taken the online portion, which is the longest part of the course, but has not called the Counselor, so no certificate has been issued. When I met with my client, I went over all the steps for taking the course, including he needed to call the number of the instruction sheet in order for a certificate to be issued. Now, I am unable to get in touch with my client.

I have another client who has signed everything, but took the course over 7 months ago, so the certificate is no longer valid. I have tried to call her, but the phone just rings. I have sent her emails, but she doesn’t respond. Again, I am unable to file the bankruptcy case until the Credit Counseling Course is retaken and a new certificate is issued.

If the Credit Counseling Course is not taken before the case is filed or is over 180 days old, the US Trustee can and will dismiss your case. Also, the attorney who filed the case will have to explain why the case was filed without a valid Credit Counseling Certificate.

For more information visit http://www.bankrupcy-alternative.com/bankruptcy-effects.html or call us directly.

# # #

Bankruptcy Effects distributes information through its network of websites, press releases, newsletters, and blogs.