Here's What to Expect From a Bankruptcy Attorney

Did you know that two million people file for bankruptcy protection annually? In 2001 there were 1,458,000 bankruptcy filings and half of those were due to medical bills that consumers could not pay.

The recent foreclosure meltdown and rampant unemployment rates that are still plaguing many states has also increased the number of people who are being forced to file for Chapter 7 discharge protection.

Bankruptcy is a federal filing and it is certainly not a simple matter. This is not something that you should attempt to do on your own without the legal guidance of bankruptcy attorney to help you.

The entire process from filing to discharge can take up to three months. There are a lot of steps towards filing for Chapter 7. The first step after you consult with your bankruptcy attorney is to complete the mountain of paperwork required for a discharge. This will include a matrix of all of your debt and proof of all your income. Some of your income is exempt but you need to discuss with your bankruptcy lawyer what you need to list and what you don't. The new bankruptcy laws created in 2005 also require you to seek credit counseling within 60 days of filing bankruptcy. This is actually fairly simple and can be done within an hour or through any of the government approved online credit counseling agencies that you can find to the department of justice website.

Once you've accomplished this much, your next step will be for your bankruptcy attorney to file your petition with the federal bankruptcy court, which cost $300 in filing fees.

As soon as you file your paperwork with the court you are granted an immediate stay of proceedings. What this means for you is that your wages can no longer be garnished, legal action comes to a standstill and collection efforts must stop immediately. If you're being plagued by debt collectors calling you at work and at home they must stop all contact with you or risk substantial fines.

Within two weeks the creditors you listed on your petition are notified of your intent to declare bankruptcy and they are invited to a 341 meeting which is set up twenty to forty days later. Your bankruptcy attorney should be present with you during a 341 meeting in which your creditors have the right to ask you questions and verify facts about your bankruptcy petition. Most creditors don't show for these meetings and they only last about 5 minutes. But it's still a good idea even if your state doesn't require it, to have your bankruptcy attorney accompany you to the meeting which you are required to attend.

If you have any assets that are not exempt by federal or state bankruptcy law the bankruptcy trustee will sell them in order to pay down some of your debts. After your assets if any have been sold and your 341 meeting has been concluded successfully, your bankruptcy will be discharged and you can begin to rebuild your credit.