Bankruptcy is a process and not a simple act. An experienced and qualified bankruptcy attorney may provide valuable assistance throughout the entire bankruptcy process if a consumer’s financial circumstances require the filing of a bankruptcy case under Chapter 7 or 13. When filing for bankruptcy, it’s important for all Northern California consumers to be aware of some basic information. Here’s a brief summary of some crucial things to know about filing a bankruptcy case.

*Bankruptcy is a process not a simple act

Bankruptcy requires more than filing the bankruptcy petition. It typically requires the completion of two credit counseling classes, one prior to filing, and one prior to discharge or the completion of the bankruptcy case. Receiving a discharge may take up to 3-6 months in a Chapter 7 case and from 3-5 years in a Chapter 13 case.

Within just weeks of filing, bankruptcy debtors are required to file extensive documentation showing evidence of their assets, liabilities, income, expenses, and the general state of their financial affairs. The information contained in this paperwork must be truthful and is submitted “under penalty of perjury” meaning that the debtor is subject to penalties under federal law if such information is not truthful.

These schedules and statements are in addition to the completion and submission of the means test which establishes whether a bankruptcy debtor is eligible to file a Chapter 7 liquidation case. The means test is an imposing document that some say resembles a twenty-five-page tax form.

Bankruptcy Debtors Must Attend a “Meeting of Creditors”

Debtors must attend a public meeting of creditors conducted by the assigned local bankruptcy trustee who requests that debtors affirm the information contained in their bankruptcy documents. Again, debtors are sworn to testify under penalty of perjury. At this meeting, creditors may examine debtors and ask any questions related to the outstanding obligation. Creditors may also challenge the dischargeability of a debt by filing a complaint in bankruptcy court for the full balance of the debt.

Don’t let the stigma of bankruptcy keep you from solving your financial problems! The experienced Sacramento metropolitan area/Northern California defense attorneys at the Montefalcon Law Offices are here to help you if your financial position necessitates the consideration of a bankruptcy case filing under Chapter 7, 11, or 13. Contact us online or schedule a free consultation at any of our three conveniently located offices. Telephone our downtown Sacramento office at (916) 444 0440, our south Sacramento office at (916) 399-9944, or our Concord office at (925) 222-5929.