The Bankruptcy Process

What you need to know...

When someone speaks about the different types of bankruptcy (e.g., Chapter 7, Chapter 13, etc.), what they are really referring to are the chapters of the U.S. Bankruptcy Code which deal with the specific type of bankruptcy. The two primary chapters of bankruptcy provide a different structure for best handling an individual's circumstances.

Chapter 7

• Liquidation bankruptcy that is a relatively quick process
• Keep all exempt property while eliminating debts
• Possible to keep house and cars

The following is a simplified outline of the basic stages of Chapter 7 bankruptcy:

• Consultation: First, we'll sit down with you, review your case, and let you know which type of bankruptcy (if any) you should file.
• Gather information: Before we can petition the bankruptcy court on your behalf, we'll need to collect some information (e.g., information on your debts, your posessions, your income, etc.). With this information we can put together a bankruptcy petition on your behalf.
• Sign bankruptcy petition: Once we've finished putting together the bankruptcy petition on your behalf, you'll be asked to sign the petition and verify that what we've included is correct (e.g., the information you previously provided).
• File petition with the bankruptcy court: We'll then file the bankruptcy petition with the bankruptcy court for the particular bankruptcy court for where you reside (e.g., Northern Indiana or Southern Indiana courts).
• Attend meeting with bankruptcy trustee to review your case: Next, you and your bankruptcy attorney will attend a meeting with an officially appointed bankruptcy trustee who will review the information provided, and ask any questions they may have.
• Receive your bankruptcy discharge: You will then receive your bankruptcy "discharge" (e.g., you'll be released from liability for the specified types of debts that petitioned to clear). This means your creditors can no longer take any collections actions on these debts - no more legal actions, no more threatening calls or letters.

Chapter 13

• Wage-earner's bankruptcy designed for those with sufficient income to pay back at least a portion of their debt
• Debt consolidated into a managable 3 to 5 year payment plan
• Effective method for saving a house that is already in foreclosure

The following is a simplified outline of the basic stages of Chapter 13 bankruptcy:

• Consultation: First, we'll sit down with you, review your case, and let you know which type of bankruptcy (if any) you should file.
• Gather information: Before we can petition the bankruptcy court on your behalf, we'll need to collect some information (e.g., information on your debts, your posessions, your income, etc.). With this information we can put together a bankruptcy petition on your behalf.
• Sign bankruptcy petition & propose a repayment plan: Once we've finished putting together the bankruptcy petition on your behalf, you'll be asked to sign the petition and verify that what we've included is correct (e.g., the information you previously provided). In addition, as part of this plan, we'll be including a plan on how you'll be repaying a portion of your debts, as we've previously discussed.
• File petition with the bankruptcy court: We'll then file the bankruptcy petition with the bankruptcy court for the particular bankruptcy court for where you reside (e.g., Northern Indiana or Southern Indiana courts).
• Start making monthly Chapter 13 plan payments: As outlined in your bankruptcy petition, you'll then start to make payments toward your Chapter 13 bankruptcy. This is a show of good faith that you're already in the process of making good on a portion of your debts.
• Attend meeting with bankruptcy trustee to review your case: Next, you and your bankruptcy attorney will attend a meeting with an officially appointed bankruptcy trustee who will review the information provided, and ask any questions they may have.
• Get your proposed Chapter 13 plan approved by the court: Your petition will then be filed with the bankruptcy court who will review all of your debts, posessions, and determine if the petition and bankruptcy plan are valid, and if so, let you continue with your payments to discharge your debts.
• Continue making your monthly Chapter 13 plan payments: As part of Chapter 13 bankruptcy, you will need to continue to make payments to your debtors as agreed upon with the bankruptcy court. As long as you continue to make payments, your debtors will leave you alone, and you'll continue on to receive your bankruptcy discharge.
• Receive your bankruptcy discharge: After the completion of all your payments, you will then receive your bankruptcy "discharge" (e.g., you'll be released from liability for the specified types of debts that petitioned to clear). This means your creditors can no longer take any collections actions on these debts - no more legal actions, no more threatening calls or letters.

I don't know which to pick? What do I do now?

We understand that deciding to file for bankruptcy is not only stressful, but also confusing. Hensley Legal Group, PC is here to help you make informed decisions regarding whether or not you should file and the best way to file for bankruptcy. We know you have questions about which bankruptcy is best for your particular circumstances.

Our job is to help you obtain the best possible outcome and we take this job seriously. If you are considering bankruptcy and you need help please Contact Us. We are here to help and we have the experience, dedication and compassionate attorneys you need. We provide the following services for our bankruptcy clients:

• Free Initial Consultation
• Evening & Weekend Appointments Available
• Payment Plans Available