Some people may endure years of abuse at the hands of creditors and debt collectors, not fully understanding that they can put an end to that abuse by filing for bankruptcy under the proper circumstances. It is a process that can be completed in a matter of months, allowing a debtor to begin to recover to the extent that he should seriously consider obtaining ONE credit card or, possibly, manageable loans. Nearly all aspects of bankruptcy are less painful than commonly believed, and it can often be a wise choice under the right circumstances.
For many, the most difficult step in the bankruptcy process is making the decision to file for bankruptcy. But once filed, it’s important to know what to expect in terms of time. So to give an idea as to one possible common timeline, Robert Canning, a bankruptcy attorney located in Los Angeles, CA, has outlined the typical bankruptcy process that he encounters.
“At first,” Canning says, “we talk on the telephone to discuss the caller’s individual concerns, set an appointment and then meet at one of my offices located near a client’s home or office. At that time, after they’ve decided to retain my services, they pay part of their hard earned money towards the total cost, though they usually don’t pay in full. An additional 30 to 60 days is usually necessary to pay the rest. So it takes around 45 days on average from the time I confer with a client on the phone to the time time the caller has paid me in full.“ During that interim period of time, Canning says, “we can hold off the creditors from any possible liens or wage attachments.”
After Canning has been paid in full, the work begins in earnest. He prepares and completes the necessary paperwork consisting of 45 to 50 pages of bankruptcy schedules, forwards the schedules to the client to review, date and sign, and has the client return them to his office. “When returned to me, I make any necessary final changes, if any, and then electronically file the schedules with the court. “
Following this, the court, in a timely manner, will send the debtor(s) and the creditors, among others, a date for the court hearing. Canning says that many clients express concern over whether they will have enough advanced notice of the court date, but he assures them that this is usually not a problem, as the average notice period is approximately five weeks-plenty of time to make the necessary plan to attend the hearing known as the Meeting of Creditors.
The final step involves attending the court hearing and then waiting for the discharge. “So,” according to Canning, “from the time the bankruptcy papers are filed electronically to the time of discharge, approximately 4 to 5 months has elapsed. I would say usually 4 months, but sometimes the court takes longer to issue the Discharge of Debtor.”
Once the Discharge of Debtor is received, the client is home free. Often, Canning says, clients feel a great sense of relief immediately following their initial conference with him and certainly after the bankruptcy procedure has been completed. The Discharge can become a new lease on life-provided that the client learns from the experience and corrects problem spending habits. If he does, he can begin to rebuild his credit-and his life.
This article is for informational purposes only. You should not rely on this article as a legal opinion on any specific facts or circumstances, and you should not act upon this information without seeking professional counsel. Publication of this article and your receipt of this article does not create an attorney-client relationship.