When you need a way out.
This page is intended to give you some basic information about the Chapter 7 bankruptcy process as well as outline your responsibilities, of which there are several. Nothing contained here should be considered legal advice; please consult with me, or your own attorney, to ensure that you have fulfilled all of your responsibilities and produced all of the necessary documents.
Full Financial Disclosure
Prior to filing, your attorney will need to get a complete picture of your financial situation, including, but not limited to:
Pre-filing Counseling Class
Prior to filing, you must take a pre-bankruptcy Credit Counseling class; this can be done online or by phone. Your attorney can give you a list of reputable counseling providers.
Filing Fee
The filing fee for a Chapter 7 bankruptcy, which goes to the court to cover its costs, is currently $306. The Court often allows debtors to pay this in three monthly installments. The first installment will be due approximately one month from filing; if you miss an installment payment your case will be dismissed. You may also pay the filing fee in full at the time of filing.
After Filing - Document Requirements
Once the case is filed you will be assigned a trustee. The trustee is the person employed by the federal government to ensure that bankruptcies are executed properly and that debtors are being honest about their assets. To fulfill his or her obligations the trustee requires certain information that we will need to provide at least one week before, or at the time of your 341(a) hearing. These include:
Your Bankruptcy Hearing
Filing bankruptcy requires that you attend a hearing with a Trustee assigned to your case; this person is responsible for ensuring that if you have any assets they are appropriately distributed to your creditors.
The hearing at which you will meet with the Trustee is automatically scheduled for approximately five weeks from the date of filing. You MUST be there in person; your attorney will be there as well. You will sit across the table from the trustee in a large room that is open to the public but generally only inhabited by other debtors and their attorneys. You will then swear an oath to tell the truth and answer questions regarding the petition and your assets. You must bring your Social Security card and a driver’s license or other state-issued ID to this meeting.
If You Have Assets
Often the trustee will decide at the end of hearing whether you have an “asset” or “no asset” case. If the trustee believes you have assets in excess of the exemptions he or she may require you to pay that much money into the bankruptcy “estate”. The estate is the pool of funds that will be used to pay your creditors. If you must pay into the estate the trustee will generally allow for a payment plan. If you are deemed to have a “no asset” case, no payments will be required.
Post-filing Counseling Class
Within 45 days of the hearing you must submit a certificate of completion for a second class called the Personal Financial Management Course; this can be done online or by phone with the same organization you used for the first class. Failure to complete this course may result in a dismissal of your case so keep your eye on the deadline (or better yet, complete it prior to your hearing).
Ongoing Reporting Requirements
You have an obligation to report any inheritance of property or money that occurs within six months of your filing date and to make payments into the estate if required. Generally, within a few months of the 341(a) hearing your debts will be officially discharged (eliminated) and your case closed.
Full Financial Disclosure
Prior to filing, your attorney will need to get a complete picture of your financial situation, including, but not limited to:
- How much money you have made in the last three calendar years and from what sources.
- Your average income and witholdings over the last six months.
- Your monthly expenditures.
- A complete list of your assets.
- A complete list of your creditors and liabilities.
Pre-filing Counseling Class
Prior to filing, you must take a pre-bankruptcy Credit Counseling class; this can be done online or by phone. Your attorney can give you a list of reputable counseling providers.
Filing Fee
The filing fee for a Chapter 7 bankruptcy, which goes to the court to cover its costs, is currently $306. The Court often allows debtors to pay this in three monthly installments. The first installment will be due approximately one month from filing; if you miss an installment payment your case will be dismissed. You may also pay the filing fee in full at the time of filing.
After Filing - Document Requirements
Once the case is filed you will be assigned a trustee. The trustee is the person employed by the federal government to ensure that bankruptcies are executed properly and that debtors are being honest about their assets. To fulfill his or her obligations the trustee requires certain information that we will need to provide at least one week before, or at the time of your 341(a) hearing. These include:
- Bank statements for all of your accounts which include balances on the day of filing as well as all activity for the 30 days prior.
- Tax returns for the last year you filed.
- Copies of vehicle titles, if any.
- Your last six months of paystubs.
Your Bankruptcy Hearing
Filing bankruptcy requires that you attend a hearing with a Trustee assigned to your case; this person is responsible for ensuring that if you have any assets they are appropriately distributed to your creditors.
The hearing at which you will meet with the Trustee is automatically scheduled for approximately five weeks from the date of filing. You MUST be there in person; your attorney will be there as well. You will sit across the table from the trustee in a large room that is open to the public but generally only inhabited by other debtors and their attorneys. You will then swear an oath to tell the truth and answer questions regarding the petition and your assets. You must bring your Social Security card and a driver’s license or other state-issued ID to this meeting.
If You Have Assets
Often the trustee will decide at the end of hearing whether you have an “asset” or “no asset” case. If the trustee believes you have assets in excess of the exemptions he or she may require you to pay that much money into the bankruptcy “estate”. The estate is the pool of funds that will be used to pay your creditors. If you must pay into the estate the trustee will generally allow for a payment plan. If you are deemed to have a “no asset” case, no payments will be required.
Post-filing Counseling Class
Within 45 days of the hearing you must submit a certificate of completion for a second class called the Personal Financial Management Course; this can be done online or by phone with the same organization you used for the first class. Failure to complete this course may result in a dismissal of your case so keep your eye on the deadline (or better yet, complete it prior to your hearing).
Ongoing Reporting Requirements
You have an obligation to report any inheritance of property or money that occurs within six months of your filing date and to make payments into the estate if required. Generally, within a few months of the 341(a) hearing your debts will be officially discharged (eliminated) and your case closed.
503.956.1110
kara@govrolaw.com
kara@govrolaw.com
Oregon Debt Solutions and the Law Office of Kara Govro are located near the intersection of HWY 217 and I-5, in Lake Oswego, within five miles of Tigard, Tualatin, SW Portland, and Durham. Kara is also willing to travel to meet clients in Sherwood, Wilsonville, West Linn, NW Portland, SE Portland, Beaverton, and surrounding areas.
Oregon Debt Solutions and the Law Office of Kara Govro are a debt relief agency that assists people in filing bankruptcy under 11 USC 547.