Frequently Asked Bankruptcy Questions

What happens after I file a bankruptcy petition?

First, the bankruptcy court will send your creditors a "Notice of Commencement of Case" informing them that you have filed the petition.

About 30 to 40 days after filing the bankruptcy petition, you will have to attend a hearing presided over by a bankruptcy trustee. This hearing is called the First Meeting of Creditors. The trustee is not a judge, but an individual appointed by the United States Trustee to oversee bankruptcy cases. At the First Meeting of Creditors the trustee will ask you questions under oath regarding the content of your bankruptcy papers, your assets, debts and other matters.

Under normal circumstances, in a chapter 7 proceeding the Bankruptcy Court will automatically issue you a discharge 60 to 75 days after the First Meeting of Creditors. In a chapter 13 proceeding, the Court will if appropriate enter an order confirming your chapter 13 plan. In a chapter 13 proceeding you receive your discharge upon completion of the chapter 13 plan.

Who deals with my creditors and bill collectors during the bankruptcy?

Usually, your attorney deals with all creditors.

What is the "automatic stay?"

When you file a bankruptcy petition, your creditors are automatically barred from taking any action to collect the debts owed them or seizing your property. The relevant statute, 11 U.S.C. sec. 362, does provide some exceptions. For example, a bankruptcy petition does not stay the commencement or continuation of a criminal action (unless brought to collect a debt), an action to collect alimony, maintenance or support from certain assets or income, or an action to enforce a government's police or regulatory power.

In some states, an action taken in violation of the automatic stay is void. In other states it is voidable and the debtor must obtain a court order undoing the action.

My creditors ignored the automatic stay. What do I do?

First, make sure the creditor is aware that you filed bankruptcy and ask it to stop collection efforts.

If the creditor does not respond, ask the bankruptcy court to enter an order specifically enjoining the creditor from further action.

If you are an individual and are injured by your creditor's willful failure to comply with the automatic stay, 11 U.S.C. sec. 362(h) allows you to recover actual damages, including costs and attorneys' fees, and, in appropriate circumstances, punitive damages.

Finally, in some states you may have to obtain an order from the bankruptcy court reversing the action taken by the creditor.

How can I learn more about bankruptcy?

The Internet is a useful resource for learning about bankruptcy. The Bankruptcy LawTrove includes links to a number of on-line bankruptcy law guides, including one at Cornell School of Law. In addition, most law libraries will have copies of "Norton Bankruptcy Law and Practice, 2d," a comprehensive treatise on bankruptcy law and "Chapter 13 Bankruptcy" by Keith M. Lundin.

What if my question isn't answered here?

Send your question to Warren E. Agin of Swiggart & Agin, LLC using the Feedback page and we will try to help you. Make sure you state where you live. Please keep in mind that we can not provide legal advice over the Internet or answer questions about state law (other than in Massachusetts).

You may want to contact an attorney. Most bankruptcy attorneys do provide free initial consultations and can provide you with the guidance you need to decide whether to file a bankruptcy petition.